Online Trading Rules:
The stock world provides various opportunities for your money to grow. You can trade or invest in the market as per your wish and need. Online trading helps you trade at ease and your convenience. You need not meet the broker to place your trades as you can trade all by yourself through online trading platforms. With mobile trading apps, it is easy to place orders anytime from any part of the world. There are people who carry out intraday trading which means buying and selling the shares within a day itself. If you do not buy or sell shares, your position will be squared off automatically by the broker. Let us know about the 10 golden rules of investing in stock markets.
10 Golden Rules for Trading in Stock Market:
1. Never deal with unregistered brokers/intermediaries:
When trading or investing in stock market, you have to be very careful in choosing the broker. Check the background or reputation of the broker before opening an account.
2. Never take decisions based on rumors:
Your decisions must be based on proper research. You have to be in touch with the markets all the time to know which factors affect the market and in turn your stocks. A constant monitoring of the company whose shares you trade is very essential to take the best move. Take your decisions based on strong evidence backed by research reports and right information from the right source.
3. Choose the right stocks:
You have to select highly liquid stocks otherwise you will be stuck in your position and will face losses.
4. Take calculated risks:
You have to take risks in accordance to your risk potential. Understand your commitments and dependants, take risk wisely. You can only lose money that which you can afford to lose.
5. Don’t be greedy:
As a trader, you should not be in a hurry to make more money in a short span of time. Watch the markets and price movements carefully and then decide. Take expert opinion as well.
6. Never be emotional:
Be practical and have realistic expectations. Don’t ever take decisions because of emotions.
7. Do thorough research:
Always do a proper study of the companies, their balance sheet, future business potential and the global and national factors that would affect the company’s revenue or image.
8. Use stop loss:
This is one of the best ways to reduce your loss and thereby retain the gains you have made. You can fix stop loss for your stock wherein your stock will get sold off when the price hits the particular stop loss level. Employ stop loss in your trades to reduce losses.
9. Hedge your positions:
Any economic or political event may shake the market. Therefore, it is important to hedge your positions.
10. Redressal of grievances:
You must not hesitate to approach the concerned authorities in case of any grievances. Before you start online trading or investing in the stock market, you should read a lot of books regarding market behavior. Do a lot of research on the companies and sectors which you are interested in. Take the help of financial experts and experienced investors to know how to start. For trading, you need a demat and trading account which can be opened easily in 15 minutes. High speed trading platforms help you trade at a faster pace and with no difficulty. You can even download mobile trading apps and carry out trading through your smart phone itself. These apps are user friendly and make you trade in a secured way. Never hesitate to get into the stock market. Firstly, prepare a financial plan for yourself and choose the right broker. Start trading now!