Friday, January 14, 2011

TRADING - When & How !!!

A Strong fight between BEARS and the BULLS, seems  bears overpowering the bulls.
Well , I have noticed for  last  two weeks the Indian Stock markets - BSE as well as NSE  are  showing a very nervous sign,  which shows the Buyers and sellers are not confident of the direction of the trading whether Buying, Selling  or Holding on.

Being involved in this activity for so many years now, I am still trying to understand ways to make some good returns from the stock markets, which has till date defied from reaching to me.

Lets explore -  With my personal experience what I feel, following points are very crucial for making best from the markets;
1)  TIMING  - It is very Important when to enter in the market and when to Exit.
2)  LIQUIDITY - Liquidity plays a very important role, when you are in the market, never stretch your self beyond your limits. Always retaining some Liquidity.
3) SELECTION - The commodity selection is very crucial. One should not enter and exit just merely from word of mouth. One should essentially convince oneself  before buying specific commodity.
4) NO CREDIT MONEY - The investible fund should come from your freely available reserves, it should not be from any loans.
5) FINANCIAL GOAL/EXIT STRATEGY- One should define his/her  Financial goal (or targets of return). And these targets should be practically achievable.
6) INFORMATION : Information about  Industry, Companies  and  the Government policies is very crucial, need to keep updated, via any means possible.

The above mentioned points I perceive very important for share trading. I am still trying to getting more skilled on the above, this Year I wish I could implement the above startegies for some gud returns.

In my subsequent posts I will try to elaborate further on the above points and would take up some other basics related to the share trading.
by that time Profitable trading.... CHEERS

3 comments:

  1. In summary, one has to be very Disciplined and should have better Money Management skills! :-)

    ReplyDelete