Making money from share market is an art. You need to learn this art to become a successful trader or investor. There are so many smart people in the market and you need to be extra smart to make good amount of money. Never think that you know everything – that attitude doesn’t take you anywhere instead of that keep on learning and always have a mindset that i still need to learn a lot.
If you feel that you know everything even if you have decades of experience you will lose the interest in learning. Not only in share market everywhere things are changing in a rapid rate compared to previous decades and centuries. So you need to be up to date about everything otherwise you will lag behind. Here are some basic steps you need to follow to become systematic and successful in trading. There is a video also listed below with the same content.
1. Always research well before investing. Study about the company and closely look into its quarterly and yearly results, other fundamental parameters like P/E, EPS and other ratios before investing.
2. Check the stock’s current technical trend, especially if you are investing for a short period. Even if company fundamentals are good and stock is still in multi-months low, that means something is negative.
3. Cutting losses are more important than taking profits. Both are part of the game. So cut losses as early as possible and hold on to winners.
4. Have patience. Don’t have unrealistic expectations. Don’t take it as gambling. It is impossible to become rich overnight. Keep a good portfolio and be confident.
5. Don’t over trade and have a clear idea on the brokerages and other charges. If you over trade, these charges will neutralize most of your profits.
6. Don’t invest blindly on free tips or recommendations. Even if you want to invest based on tips from a reliable source, study about the company well before investing.
7. Don’t follow the crowd and don’t try to time the market. Have a clear idea of what you are doing and hold on to it. Success will be yours. Happy Trading.