Thursday, August 12, 2010

My advice to beginners...

From my own experience, i understand the following facts
1. Day traiding(Buying stocks by paying margin money or selling stocks which is not present in our account will
only make loss.Some days we may gain something, which inspire us for doing daytrading.But the loss due to
day trading will be manytimes more than the gain.If you are holding stocks which is in a profit position, then
you can exit in the day and can buyback it in the same day if a market correction occurs or a correction occurs
in the same stock.If we can't buy back it in the same day we don't have to worry, since we already got some
profit.But we will get an opportunity to bought it in the nearfuture at a reduced price.

2. Purchase only good quality company shares.
3. Accumulate same shares when correction occures in the price of the shares we purchased.
4. Invest in shares of different sectors.
5. Never borrow money for share trading.Use only a portion of our savings to buy shares.
6. If we don't have time fo watch market, better purchase mutual funds than shares.

No comments:

Post a Comment