I am sure you all know it, but still these guidelines can be very helpful for you in trading.
Follow it and you can see the difference.
<> Research for safer quality stocks
<> Study trading ranges
<> Buy on dips and sell on peaks
<> Implement money management techniques
<> Don't be greedy
<> Short-term plays
TRADE ONLY QUALITY STOCKS
<> To reduce chances of major drops
<> Follow just a few stocks – know them intimately
<> Invest in best of each segment to reduce risk
<> Pick good industries – follow trend
<> Pick stocks with "good numbers" (fundamentals)
<> Pick stocks with good management and public imageBUYING ON DOWNSWINGS;
SELLING ON UPSWINGS
<> Know each stock's historical trading range and focus on last 60 days
<> Chart peaks and valleys and find entry and exit points that the stock hitsfrequently
PROTECT YOUR MONEY WITH MANAGEMENT TECHNIQUES
<> Pick a budget you could tolerate to lose
<> Be prepared to cost average frequently
<> Enter 50% of budget into 1st position, and 50% into 2nd position
<> Cost average when your stock bottoms out and settles to new low level only,don't cost average just because it dips
PLAN EXIT POSITION BEFORE YOU ENTER
<> Generally, try to make 50 - 100Rs /share; don't focus on percentage
<> Place sell order for day only if you can't watch the stockREDUCE RISK BY…
<> Avoiding positions with earnings coming out
<> Down or out of favor industries are to be avoided / remember these are shorttermplays and we're not investing for the long term
GET OUT OF THE "INVESTING" MENTALITY AND GET INTO "MAKE A PROFIT TODAY" MENTALITY
<> Take any profit you make as often as you can because stocks move up and down by nature
<> We're not waiting for the stock to turn or make significant moves
<> We're not trying to find the stock that can hit us a homerun
<> Sometimes you just have to bail out because time is money
<> When to? Stock drops more than 20%
<> Then what? If stock was good before, it will probably be good again. Buy it back and cost average once it finds a bottom. Then don't wait for it to come all the wayback, sell it at the top or near the top of its new trading range and repeat until you recover.
HOW TO SALVAGE A BAD TRADE POSITION
<> Cost average at 20% loss level
<> Sell out beyond 20% and wait for bottom and new range and trade-out
<> Hold for long-term, MUST USE DEEP DISCOUNT BROKERS
<> Scottrade, E-Trade etc…STAY ON TOP OF YOUR STOCK LIST
<> Keep abreast of any major bad news and delete from list immediately
<> Study and search for new stocks continuously
Suggestions and Comments are most welcomed.
Thanks & Regards
Friday, August 3, 2007
Posted by hakim jamali at 8:54 AM
Wednesday, August 1, 2007
In this section YOU and I would share which all shares look fundamentally strong in order to buy, and also which all shares can give good returns long /short term depending on the markets volatality.
I would also appreciate if you could list those stocks which are on red alert and holding them can be risky.
If you are holding some shares and want some suggestions, your queries are most welcomed.
Keep posting and helping people.
Remember one thing 'Any Money is Good Money'.
So enjoy trading.
Thanks & Regards
Posted by hakim jamali at 1:40 PM
I am very much new to share market.So i thought i will observe the price movement of few shares for sometime and gain some knowledge. One of the share Intra infotech when i started looking on it is initially some Rs. 20 /- and in 10 to 15 days it reached 32. so , i thought ok this share is moving up daily by a rupee and also the price is less, i will buy this share and bought it. But from the very next day it started falling down. Currently the price is at some 18. I sold a few days back at rs 19/-.
So frnds dont get too enthusiastic. know the company well in which u r investing,whats the trade talk( u got so many websites ) etc etc.
Bye for now
Thanks & Regards,
Posted by hakim jamali at 1:09 PM
As you all know share market of India is full of oppurtunities. Well I know a lot of risk is involved
but with proper knowledge, money management and courage any one can make leaps and bounds in this game.
Here I and 'YOU' together can make a lot of difference. We can share our knowledge and experience about this so called 'risky game' but with full of oppurtunities, which can help us to earn and learn.
Suggestions are most welcomed.
Hoping to see an active participation from your side.
Thanks and regards
Posted by hakim jamali at 12:32 PM