8 rules to play the game of share trading
Share trading is like a game which involves challenges, there can be profit as well as loss involved in the game. With the help of online share traders, the investors can minimize the risk of facing loss and earn a good profit.
Games are considered challenging, but there are certain rules that every game has to follow. The game of online share trading is not an exception either. Here the investor who is the main player in this game should have complete knowledge about the rules of online share market. The more the player knows about the rules, the more expert he will be in playing this game. In this article we will have a look at the golden rules of share trading.
Get into the market at the perfect time:
Wait for a declining stock market index, and take the step. Purchase stocks when there is negative news.
Wait and see when the it is the best time to sell:
Selling all your shares at once when the index starts to move positively is foolishness. Wait for the perfect time so that you can get maximum profit. Try to sell the shares when there is good news market live.
Diversify your portfolio:
Do not put all fruits in a single basket. Diversify your portfolio by making investments in stocks of companies that belongs to various sectors for example. health care, energy, oil, consumer durables, gas, automotive, etc.
Accept the fact i.e. try to accept loss:
Do not try to be over-smart to make profit daily. If you realize that you are on the wrong phase, try to accept the reality and move out of the trade by getting minimum possible loss.
Retain the profits and reinvest:
Never reinvest all your profits. It is wise to periodically keep aside the profits so as to develop a good capital base which can be utilized to absorb the possible future losses.
Make an informed decision:
Starting an online share trading with an unclear mind should always be avoided. Investors should closely monitor the movement of the market index and global trend prior to making a decision regarding investment.
Trade in high volume shares:
One of the smart ways of making investment is to trade the shares in high volume. The volatility in price is comparatively less for a high volume than in case of a low volume. The buyer for the stock will always be available. Therefore, you can easily exit the share market by selling off your shares at a certain point.
Utilize relative strength index (RSI) for stock picking:
RSI is a very useful tool for stock picking in the share market. It helps the investor to identify the oversold or overbought stocks. This provides an idea about whether a stock is going to be under or over valued in the coming future.
Share trading with Angel Broking:
If you are interested in online trading and want to make smart investments, you can get in touch with Angel Broking, a leading and the most respected Stock-Broking and Wealth Management companies in India. We are serving our customers from past 27 years. With our distinct retail-focused strategies of share trading, we are committed to provide the actual value for money to all our customers.