Learn Basics of Online Stock Trading- 25 Super Tips About Stock Exchange Business
Online stock trading is one of the best way of making money online. You should learn the principles for online stock trading. In this article we shall share 25 super tips for online stock trading. These are just tips, you need to get proper experience and guidance before investing.
1-Stock trading without having any practical experience or training will not be useful for a new comer.
2-You must first try to understand the dynamics of stock exchange business. For this purpose analyse the market daily for at least 2 to 3 months.
3-Greed, nervousness, haste and lack of proper study will make you loser in stock exchange business.
4-Learn to take risks but just calculated risks. Key to success in the field of stock trading is calculated risks.
5-To err is human so never lose heart in case of any loss. Learn lessons from your mistakes.
6-Experience will make you a perfect investor there is no alternative of experience. Only A persistent person can survive in this field. You can not become a successful investor overnight.
7-Assist any experience broker with good record in initial stage of your career.
8-Invest 1/4 of your total capital. Set a limit of maximum loss and profit and sale your share at that limit.
9-Never invest in so many stocks as it will be difficult for you to monitor the fluctuation in large number of stocks.
10-Analyse critically your daily performance and try to learn lesson from it.
11-Try to invest in best companies at right time i.e the time when their shares are at the lowest level.
12-Best companies give you less profit but these also reduces the chances of loss.
Learn Online Stock Trading- 25 Super Tips
13-There is nothing by-chance in stock market. Every thing is calculated. It has become a science and a person with good analytical approach can win great profit.
14-History always repeat its self specially in stock exchange, so analyse the graphs of different companies carefully to predict the behavior of their shares in future.
15-A person who can decide that when to start buying or selling can become a successful investor.
16-After getting reasonable profit, beware of loss.
17-Never keep your all eggs in one basket.
18-Never invest even a single penny in loser’s state of mind.
19-Read business recorder and keep an eye at all market indicators.
20-Never invest in the companies which are famous for their sudden and unexpected profits. If necessary then invest maximum 1/10th of your your total investment. In case of loss sell these stocks immediately.
21-In Pakistan investment in oil, fertilizer and banking sector is considered safe investment.
22- Proper homework is another important factor in stock business. Collect maximum information about the record and recent performance of a company before buying its stocks. All enlisted companies have set up their investor relation departments. You may also get information about the earning, profit and current situation of any company by making a call to investor relation department of any company. We do a complete research before buying a smart phone then why we should shy to to research before investing a huge money.
23-Making a exit strategy is also a key factor. You should set an exit price for all stocks. In case of a wrong decision or bad luck, you must be prepare to bear the loss but sell such item immediately. Many people including my self lost a million rupee for hoping that stock of Jahangir Saddique company will go up tomorrow. But that tomorrow never came. So accept your wrong trades and never keep a stock when it falls below your pre set exit price.
24-It is also suggested that a new comer should not buy at the market open. You should buy a stock after 30 to 45 minutes after the start of business or about 45 to 60 minutes before the end of day. Best selling time is early in the morning at 1 Pm PST. Daily charts will show you that how true is this advice of senior brokers.
25-Emotions should have no role in your stock exchange business. Its a scientific game where strict discipline is needed. You must observe discipline at the time of selling and buying.
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I am a professional content writer and have experience of 10 years. I also launched first ever English monthly magazine of human rights in Pakistan. Majority of content on this website is written by me.