| Trading in share market is not a cup of coffee that | | | | also bright. |
| anybody could drink. It is a serious game and involves | | | | 3) Trend is the king- share markets are volatile and |
| strict rules and honest dedication. Investors and | | | | trading works with momentum. If the market or |
| traders that follow rules with dedication could only | | | | particular stock goes up with a certain pace then, |
| make profits in stocks investing or trading. A trader | | | | there are equal chances that market or stock will go |
| or investor must at least know and follow some of | | | | down with the equivalent pace, as the trend changes. |
| the basic rules so as to invest and trade successfully | | | | Therefore, trend is the king of trading that change |
| in a share market or any other financial market. | | | | rules according to its motion. |
| Following are the basics of trading game in the share | | | | 4) Don't try to find market's movement reasons- a |
| markets. All investors must follow them to ensure | | | | lot of investors and traders try out finding reasons |
| effective trading and of course for making profits. | | | | for movement of the market. They use different |
| 1) Buying low and selling high- it is the most basic | | | | techniques, constantly watch markets, etc, but never |
| thing that every investor must know. A layman could | | | | find a certain reason. It is true that, no one could |
| also tell you the secret of making profit by buying at | | | | actually tell a particular reason for movement of |
| low and selling high. Despite this fact the majority of | | | | market. So do not waste your time. Trading is done |
| investors and traders do the opposite. A basic | | | | in accordance with perception of market and not |
| problem of most of the investors is that they are | | | | reality. So, concentrate in trading rather than reality |
| emotional and, hence forget the basic rule of trading | | | | of market. If you want to stay in the game and |
| in some conditions. Success of every stock trader is | | | | make money in trading then, concentrate on direction |
| determined by the fact how smartly he sells for | | | | and duration of market's movement not on its |
| higher and purchases for low. | | | | reasons. |
| 2) Trend or flow of the market- trend in the share | | | | 5) Work on your profits and minimize loses- every |
| market and stock price are the only reality of trading | | | | investor must try to run his profits and eliminate all |
| and rest are myths. Do not get fooled with other | | | | loses quickly. This is the only way out to become |
| techniques that disapprove the stock markets. Share | | | | successful in share trading. If you want to achieve |
| market is always right. If you want to play safe and | | | | this target then, you have to trade with pure |
| make money by trading then, you need to do your | | | | discipline. Discipline is a necessary condition to trade |
| trading in accordance with the flow of market. Some | | | | successfully. Share trading done with discipline helps |
| people, trade opposite to the direction of market and | | | | investors and traders to stay long in market and |
| have sometime made money as well, but such | | | | enjoy making huge profits. |
| method is extremely risky. If the market is down and | | | | 6) Experience and knowledge- there is no age bar for |
| you are long, then you are wrong while market is | | | | gaining knowledge. Therefore, you must try to |
| right and vice-versa also holds true. The simple | | | | acquire maximum knowledge as you can, but make |
| reason behind is that the stock market is driven with | | | | sure you get it from trusted and reliable sources. |
| a lot of simultaneous factors while a trader going | | | | Experience is what makes every investor a |
| opposite is just an exception. If you stay in flow with | | | | professional trader. So, keep practicing and become |
| market then, chances for you to stay in trade are | | | | successful trader. |
| long and of course chances for making money are | | | | |