TRADING RULES TO IMPROVE YOUR TRADING SKILL.

Here are some trading rules which will help you all and improve your skill of trading:

Due to the volatile nature of stock market there is no Guaranteed method to make profits with Stock Market. However you may enhance your profitability by following few or all of the below tips.

• If you are new to stock market, invest only the amount that you can afford to lose.

• Select only few liquid stocks.

• If you are already holding the stock wait for the peak or bottom.

• Watch the Index Support / Resistance and general sentiments.

• Never challenge the market and do not be over enthusiastic.

• In a highly volatile market place stop loss orders after long or short trades.

• When the market opens trade on a stock based on the previous day's movements, Partially or fully cover the trade within half an hour.

• When the market is about to close trade on a stock based on the days movements.

• In a bull market raising stocks will raise further. Wait for correction and buy.

• In a bear market falling stocks will fall further. Wait for up move and sell.

• Stocks rise or fall prior to announcement of results. Have a knowledge on this date which will help in making decisions.

• Rising or Falling Stocks which shrink in volume indicate that the run is nearing final state. Watch for change in trend.

• If you think that you have made enough profit or loss stop trading.

• Watch the general sentiment of the current market and make a decision.

• Buy when the price is rising and not while falling. Keep the strict stop loss.

• Sell when the price is falling and not while rising. Keep the strict stop loss.

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