When I small I used to see my father watching numbers and companies name in tv. I alway wonderful how this is can be so fascinating to him but now I completely understand why this numbers are so addictive.

Stock market is like pool of money where u have to put your hand in right time , in right way and take out the hand in appropriate way. Yes! Thats it believe me.

But wait , Keep in mind these Tips which I learnt after loosing 25k i n the beginning of my Investment.

1) Before you wet your feet watch the sea.

From this I mean , before you put money carefully watch stockmarket and I suggest do it for not less then a week. Virtually think that you have bought a share and sell them , make a list and see how
Much you gain and loss in a week from this. This will give you experience and from this you
Will learn from mistake. There are many free trading software where you can open an trading account free with virtual money. You can try www.moneybhai.com

2) Do what you want not what others say.

You will get 100 people to suggest you what to invest and where to invest . A famous Quote “ listen everymouth but do what your heart says”.  But before Putting even single buck in a Stock market do some research and find out why that particular share will be beneficial to you.

3) Dont go without life jacket and dont take all what u have.

When you had finally decided to invest. Never run fast. Decide small amount of money say INR 30000/-. Then first invest only one third portion  and keep two third as your life jacket.
 

How 20000 can be your life jacket.. ? Here it is..

For eg. you bought a stock in the morning thinking it’s price will rise but your luck turned to other side. Now you have three option; Either to sell the share and book the profit , or do nothing and wait for some days, months, years till price of stock get rise and third option you can exercise is taking opposite position ( Technically know as Hedging). Go short(sell) with the same stock so that even stock goes down you are earning for which you will need the money.

4 ) Say no to brokers

If you are trading specially in India then I suggest you to put your own brain and never allow brokers to interfere. They will suggest you, convince you to buy particular stock. But always remember no one understands your money better than you. Moreover with your every investment they are earning brokerage so avoid them but it’s ok to take only their little views on stock you want to purchase .

5) Always Move with Stop Loss

Share Market gives you Higher Return as it Involves Higher Risk. I suggest you to always be ready to bear the loss. If you are buying the Share , just mark the price you will sell the share and book the loss  in case price of the share fall which is know as stop loss.

For Instance: Say you bought 100 shares of Abc ltd for 300 per share with the target of 310 per share then you must also mark a price below 300 say 295 at which you sell the share and book the 5 per share loss. This technique helps you to avoid further loss. 5 per Share is the amount of Risk you are Ready to take to earn 10 per share.

Last but not the least and I think the most important one.

6) How to know in which stock to invest and when to invest?

Well I am putting this point at the end because there no fixed formula to know the right stock but still you can Improve your stock choice with the experience. Here is how you can choose better stocks.

A) Track the news.

Watch the news very carefully and see its impact in the share. Doing this you learn what’s the impact of certain news in the shares of that company.

For instance: Reserve Bank of India(RBI) has Increased the Repo Rate( Rate at which RBI lends loan to banks) then its certain that loan will get Expensive , demand for loan will fall and ultimately banks will be earning lesser Interest and Lesser Profit and this will Lead in the fall of Banks Share Market Price.

B) Choose some best shares

Choose some best shares and track them carefully and daily. If there is major fall and rise find its cause. Doing this you can guess the future rise or fall in that stock.I am giving you my example where price of the Maruti Suzuki has fallen from 1300 to 910 due to accident and strike in Haryana(India) plant . It was sure certain that Maruti will take the steps and plant will run normally in future. I bought the shares at 912 and in 10 days price again floated to 1200 – 1300 bracket and

I made a handsome profit

C) Pause your trading or go slow when economy is taking hiccups.

When Economy of Any Country is Not Smooth Stock Prices rise and sheds too much and new Investors so Its better to wait then to step down in high waves.

My final tip: Think rationally, stock market is not a gambling unless you put your money rationally.  Put your brain, Every Increase or Decrease of Price Of Shares has a reason , invest only after proper research and after gaining some experience you will also learn its rhythm.

Courtesy: http://businesstips.in

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