Thumb rules for trading or to become a best trader.
These are the rules you should never forget for lifetime when you want to be a best trader.
1.Don't put all the eggs in the basket
If you are planning to invest in a stock,don't buy the same stock with all the money you have.The best strategy is diversifing the money.Investing in 3 to 4 stocks at a time is always better.Eventhough if a company's stock price falls you can average with the earning earned from other companies.
2.Don't catch the falling knife.
If a company's stock price is falling don't ever think to buy that stock,give some time for the stock to settle and after that according to the parameters discussed in the other blog if you think the stock might go better then give a call action.
3.Stay with your limits.
If you have a target price point and target price has reached and still going up don't be greed to take more profits it might give you more problems.If you have a target price stick to it.Even you can sell stocks inbetween but if you want to be greed then ready to face the losses too..
0 Comments