CA Pawan Jajoo, Amravati

+       Stock Market are subject to Market Risk.

+       Do the Fundamental analysis and review past performance.

+       Read and understand basic Terminology of stock Market.

+       Strictly adhere to Stop loss.

+       Before entering in to trade analyze stocks on the basis of Technical indicators – moving average, Oscillator, Trend line, Trend Channel Patterns don’t Trade against the trend.

+       When people are selling be a buyer. When people are buying be a seller.

+       Avoid purchase of stocks when market value of that stock crash.

+       Stop loss & Exit to be decided before entering in to the trade.

+       Do not have any sentimental attachment with any stock.

+       Periodic Profit booking to be done by selling and re-purchase of stocks.

+       Do not over trade. Trade only up to 50 % of your Trading capital.

+       Fix your return, and exit as soon as you get your return, Don’t be too greedy.

+       Do not trade on the basis of rumors.

+       It is better to follow Monthly stop loss and stop loss or trade.

+       Do not keep all your stock holdings in same sector, distribute your investment to various sectors i.e. Diversification of investment to be done.

+       Do not invest more than 10% value of your Trading capital in any single stock.

+       Buy the stocks whenever there is some bad news and sell the stocks whenever there is good news.

Also Remember

+       You always have to have cash, especially when no one else has it.

+       No free lunch- it’s not free, or it’s not lunch.

+       You can’t change people! You can change yourself, but not others.

+       Volatility is not risk

+       always assume you will have bad luck

+       Few variables to win. Once you have to think about more than 3 variables, your odds of winning are low.

+       If you have to use more than 6th grade math, you’re in trouble.

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September 2021