Detailed Information about All companies listed
in Nse/Bse .
Key to sucess stock market
Sure, your first trade can be winner, but to
consistently make money in share market u have to learn how to lose. More to
point, you have to learn how to cut your losses.
The majority of people who dabble in share market see themselves as smart,
educated and sharp. Self-belief is great. The most successful people in world
have strong belief in themselves. Some of most unsuccessful people in world also
have strong belief in themselves. So what's difference Bet. successful and
One major difference Bet. successful traders and unsuccessful traders is ability
to admit when one is wrong. A successful trader will cut their losses before
they get out of hand. An unsuccessful trader will let their losses grow in false
belief [hopes] that things will pick up.
It would be nice if every share pick was winner, but when u get odd loser u
better make sure u cut that baby lose before u lose some big dollars.
Before u even consider entering trade, u should determine your stop-loss point.
Your stop-loss point should be set at price that you're willing to sell your
share at should things turn bad. The price you pick will vary depending on your
financial position and particular share being considered.
You can want to set stop-loss exactly 8% under your purchase price, or you can
want to set it just below some clear resistance in chart [if the share falls
below resistance level, u can be fairly sure things will continue South for
whiles]. The most Imp. thing is to test your system. If u set your stop-loss too
close, you'll never be in game when share turns good. If u set your stop-loss
too far away, you'll end up losing too much money.
Remember, main aim is to make profit across your entire portfolio. Imagine u
owned $IOOO worth of 5 different share. You set stop loss at IO% current market
value; so if value of single share drops to $9OO you'll sell at that price. Even
if u are wrong with 3 of 5 picks [a $3OO loss], u only need to make I5% on
remaining 2 shares to break even. What if those remaining 2 shares made 5O%
[which is very realistic if u pick your entry rights].. You'd actually profit
$7OO across your entire portfolio despite fact 6O% of what u picked were duds!
Starting with 5 positions worth $IOOO each: $5OOO
3 losing shares lose IO% each: -$3OO
2 winning shares make 5O% each: +$IOOO
Total = $57OO
Modern trading systems have completely automated stop-loss systems. This makes
it so easy to set stop-losses that u have no excuses for losing big in single
trade anymore! In fact, you're mad if u don't take advantage of stop-losses. The
only trick is setting them wisely. You'll learn how to plan and time your entry
and exit points on this site over the next few months.