13 New Stock Market Trading Tips

Stock market trading tips

  1. Careful selection of trading style: A proper check and analysis on the type of the online trading has to be done on the first hand with respect to where to close every trade when a day finishes. You can also think about a short-term trading, whether you would choose to do the trading weekly or monthly has also to be planned while choosing the trading style. You may feel changing your mind on the trading style in between. So it is always better to select the style of stock trading before you commence the trading activity.
  2. No to over trade: If your trading capacity is Rs. 2, 00,000, it is better to avoid using margin. You can make a choice to trade with 1.5 Lakhs rather than the whole available amount.
  3. Diversify: Portfolio diversification is an ideal technique in trading. You can utilise the option to make investment in different trading sectors.
  4. Buy when vibes are not good: You have to be alert about the stock movements. When you see the decline in the stock value, it is ideal to buy more of them, which is at the time of bad news. So that you need to pay a comparatively lesser price to buy it. The best time to sell these stocks is when there their prices rise. In other words, at the time of good news.
  5. Set realistic targets: You need to be practical in setting your daily targets. A dream of making millions in a single day is beyond practicality. Daily trading with a good patience level can take you to better heights and more profits in stock trading.
  6. Stop loss: It is better to follow stop loss as even though there are chances to lose at times, you can gain experience from a failure for a better success in the future trading.
  7. Strategy: Always make a good strategy for your trading activity. When you set a target, it is always better to wait until you reach the daily target rather than cutting positions before stop loss or make an exit by making minor profits.
  8. Buying at low price and selling stocks at a higher price may be always possible in the stock trading. There can be instances when you have to little compromise on this strategy as it may lead to further new positive outcomes in the stock trading.
  9. When you see a trend when every trader is engaged in buying, it is better to sell at this time. When all are selling, go for buying more stocks.
  10. It is wise to take long positions only in such companies which have a good reputation and strong foundation. For short term trading, you can find stock which can be speculated on a later stage.
  11. Trade the Best Stocks: You need to gain advanced skills and a good research for choosing the superior stocks from the lot. If you are not skilled enough in trading, always seek support and guidance from a professional trader. It is better to avoid huge brokerage companies and mutual funds for this purpose. This is mainly due to the fact that large trading experts usually will not make more money in trading.
  12. For a better success formula, apply stop-loss order. This supports the trader to sell the stock when it declines to a particular price. For instance, when you buy shares of company X at Rs 500 wherein you quote a stop loss price of Rs 495. When the price declines to Rs 495, the automatic sale of shares will occur, so that your loss is only rs.5. The degree of loss that you are able to afford is to be decided prior to entering in to the trade.
  13. Trading is a skill. The do’s and don’ts of it has to be learned before you enter in to trading. You have to acquire knowledge on doing spot amateurs and how to trap the same and take positions. It is ideal to know when to get in and when to get out of the trade. It is better to be quicker in this. One demerit of being an amateur trader is to do the trading at a wrong point. For a skilled trader, it is easier to identify such people and be in the opposite position to trap them.