Investment Option - Equity Trading
Trading - good or bad? boon or curse? Should I do it or should I not?
So many questions when the hard earn money is at stake! Here are some points I wish I had known before I traded.
1) Trading is not investment option if you are not ready to wait for few years.
2) Before doing equity trading do mutual fund investments*
2) Before doing equity trading do mutual fund investments*
3) There will be many ups and downs in share market depending on various factors, do not panic.
4) Never ever buy shares on margin given by broker always do cash equity trading.
5) Never ever put all your savings in equity. Distribute it mostly like 35% in property, 20% in FDs or fixed interest schemes, 10% in gold (precious commodities) and 35% in equity.
6) Always do analysis of a company you are going to buy the shares of.
7) Build Your portfolio - Buy shares all sectors like banking and finance, housing, pharma, power, metal, energy, hotel and hospitality.
8) Do not buy all shares at a time, wait for right movement in market. You can buy shares in SIP mode. Few shares this month, few next month and so on.
9) Do not put more than 20% of your funds in one share.
10) Try to average the cost price if share falls more that 40% after your initial buy.
12) Never ever listen to your broker advice and put your money. Do your research before that.
It's you who will loose the money and it's your broker who will earn.
13) Do not put money in future and options trading if you do not understand it.
14) Never Trade on emotions, stop when you know you are loosing, let the moment pass by. Come back later.
15) Avoid buying during Rally upward or downward.
16) You loose money only if you sale when share price is falling, In long term - 20 - 30 years from now, some of shares will give good returns and of course some would not.
The good returns on one share would usually compensate for loss in some, wait - be patient.
17) There are plenty free training apps, download and use them for 3 months to see how you perform. Then enter into the market.
6) Always do analysis of a company you are going to buy the shares of.
7) Build Your portfolio - Buy shares all sectors like banking and finance, housing, pharma, power, metal, energy, hotel and hospitality.
8) Do not buy all shares at a time, wait for right movement in market. You can buy shares in SIP mode. Few shares this month, few next month and so on.
9) Do not put more than 20% of your funds in one share.
10) Try to average the cost price if share falls more that 40% after your initial buy.
12) Never ever listen to your broker advice and put your money. Do your research before that.
It's you who will loose the money and it's your broker who will earn.
13) Do not put money in future and options trading if you do not understand it.
14) Never Trade on emotions, stop when you know you are loosing, let the moment pass by. Come back later.
15) Avoid buying during Rally upward or downward.
16) You loose money only if you sale when share price is falling, In long term - 20 - 30 years from now, some of shares will give good returns and of course some would not.
The good returns on one share would usually compensate for loss in some, wait - be patient.
17) There are plenty free training apps, download and use them for 3 months to see how you perform. Then enter into the market.
It's your hard earn money - utilize wisely!
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