Share Trading Fundamentals for the Hungry Investor
Today, stocks trading account for some of the highest investment opportunities for investors across portfolio sizes and risk appetites.
Share market trading sadly has been made out to be some kind of complex, ‘rocket-science’ type of an exercise that only people with some fancy degrees can understand. The truth however, couldn’t be more different. Share trading is all about following a few basic rules and then applying them in accordance with one’s investing goals. But success only comes to those that understand the possibilities and this begins with the following of a few basic rules such as the ones mentioned below:
1. While unplanned success is great and there are a few spectacular examples out there of people having been in the right place at the right time, for the general majority of people, investment success is usually achieved on the basis of how well they plan their every move – from entering a particular script and the reasons for doing so, to certain behavioral responses nested around the buy/hold/sell cycle of trading.
2. Trend mapping is another critical skill for a prospective share market player, irrespective of whether it is in the role of a broker or that of an investor. It often leads to critical insight and opens up the possibility of booking high profits or cutting one’s losses during a market shift.
3. Capital in hand is worth more than the potential profits in the market. This remains one of the fundamental principles of share trading. Many a times, even some of the biggest names in stock broking have fallen into peril for having over-leveraged their capital in their chase for unsustainable growth figures.
4. Always watch out for greed! Stock markets are notorious for people getting hooked into the whole buy/sell cycle, micro-monitoring stock movements among and other such ill-habits. Commonly observed during online share trading, it often happens in such cases that people fail to look at the bigger picture and either hold on for too long or sell too quickly. Both of these are counterproductive and what’s required instead is to cut losses during a slide and wait for the opportune moment during a growth spree, to exit just before it reaches the maximum rise limit.
5. Every stock market player should take the time to develop their own trading style. It is no use aping the moves of others and getting into the whole herd mentality loop, for market intelligence and one’s own insights may differ significantly from those of the others.
At the end of the day, success usually follows those that are consistent in their approach and back things up with solid research and keen analysis. Hopefully the above insights should prove to be handy in making you a better investor than that what you were before.
Religare Online is leading and flexible online share trading platform in India with various investment options such as commodity, derivatives, mutual funds, gold schemes and IPO process. Get all information on derivatives market and also find out biggest Indian stock market news, top gainers, top losers and near 52 week high low share with comprehensive detailed market.
Internal Rate of Return, IRR with CASIO Financial calculator
This video explains the theory of internal rate of return, and how to interpret IRR. It also include a demonstration by using CASIO Finanacial Consultant.
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Category: Personal Finance