¨ Don’t jump in trend early - Wait and get paper confirmation of trend change, and then plan and do your trades (buy/sell). Don’t jump in or do
early trades before any trade change confirmation this may damage your capital (bank balance).
¨ Don’t wait in trade for long time - Suppose that you had done one trade (either buy or sell) but the scrip is not moving either up or down, it is
just stable or moving with very low price difference, then you should get out of that trade and look for other scrip’s. You may encounter these
type of situations when indices (NSE or BSE) and not moving (or moving with narrow range). At such time either you wait or come out of trade,
don’t loose patience and fall under loss.
¨ Don’t change your trend on volume volatility - Some time you enter in trade by seeing the buy and sell quantities. For example, suppose you
brought shares by seeing more buy quantity then sell quantity, expecting more buy quantity may push the share/stock up but after few
minutes you see exactly reverse that you see more sell quantity and less buy quantity or both buy and sell high quantity or the difference of
buying and selling quantity is decreased as compared to what you had seen before. So this point is very important, don’t panic here and sell
off your stock, wait and realize the situation properly and then take action. This situation comes many times but if you are sure that your share
is going to move up then stick to it.
¨ Beware of companies’ acquisition or any announcement by Government - Suppose in the morning, before market begins, you should read or
viewed the news of any Indian Company has acquired any foreign company (or part of foreign company) if you see this is actually best
news/things that Indian company. But if acquisition amount is far more than expectation then this good news will turn into worst news. The
shares of that company will start falling. So you should not get in trade and buy shares you have to wait and watch how market or other people
are responding to these shares and once you understand then you can trade. So always watch where the market heading towards and then
react.
Announcement of Government - You should also be very careful to decide your trade based on any government announcement.
For example, if government has declared any hike in interest rate then its good news for bank stocks and hence the shares will rise but if
government has declared 2nd rate hike in very less span of time as company to first one ( stay within duration of one, two month or three
month) then this news will be worse for bank stocks, the share may keeping fall during the trading period. So realize and analyze the news
and finally watch market behavior and this fall or do trade you will get success.
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