Effective Rules for trading in Stock Market - Shyam Advisory

RAJKOT, India - April 8, 2014 - PRLog -- Has your trading decision ever made you suffer? Are you troubling to get enough returns? Making investment strategies to earn money is very multifaceted as it requires absolute knowledge and experience of stock market and frequent investment alternatives. Beginner do struggle to understand the market but if you have enough market knowledge and can understand market fluctuation like when and where share goes up or down then you are probably an expert in the industry. Nowadays, many investors and experts putting their efforts in wrong side hence they face huge losses but if you have done some planning before taking any decision on your investment, then probably you can prevent from the blow. So just make some rules before trading:

Start with Prepared Trading Plan: Most successful traders or investors make trading plans before entering into any deal and they do accordingly. This way you will have proper time and options where and when you should make trading.

Divide your risk Capital in Ten Equal Parts: Become successful money management, it is advisable to divide your Risk Resources (Capital) which you can afford to lose, into 10 equal parts and at any specified time none of your single trading should have more than three parts of your capital in it even if you are on the driver seat. At the same time always keep some extra money for any Buying Opportunity, which may come any time.

Trade ONLY in active and high Volume Stocks: Many investors or brokers get stuck with stocks for want of liquidity. Always rely upon Stocks which have reasonably high volume over a period of time. High Volume always advised for easy Entry, Exit and Stop Loss.

Never Over Trade: This is the most common mistake performed by traders even they have enough knowledge. They do this particularly after a Streak of winning Trades. This kind mistake not only wash all earn income but puts traders in huge loss. In order to remain in trading while making constants profits, investor should go beyond their risk capital.

Don't Trade with Unclear Mind: Many investors have daily trading habits and they make transaction even there are no signals to buy or sale any shares. Generally, that time they not realise, but such situation turn up after a sharp growth or decline when shares are adjusting their prices. These kinds of situation are often confusing and wash your mind. You will lose nothing in taking one, two days or short period rest if the market situation is doubtful, uncertain or instead of putting your money at higher risk.

Withdraw portion of your profits:  Stock trading is excellent way to earn money as long as if you are making profits. In other businesses you can have some remedial measures available but in stock trading only you can control. After series of successful trading, sometime traders have large egos and their tendency to enlarge commitments in overconfidence may cause major financial setback. Therefore it is must advisable that trader must take a segment of the profit and put it in separate account. This is absolutely required for long term stability in the stock market.

You cannot make profits every trade: Nobody can make profit on every trade even though having years of experience. Be flexible and agree to the fact as soon as you realize that you are on wrong side of the trade. Simply get out of the trade without changing your strategy during the market; it helps you to prevent from huge losses.

About the Company:

Shyam Advisory (Sbaasl) is one of the leading stock trading advisory firms in Rajkot, India, offering proven yet cost-effective share market tip services regarding Equity, MCX, NCDEX & Currency.