Tips and Tricks in Trading

I am new to trading, hope u people have some ideas, tips and tricks to share with me,…

  1. Learn before Earn.
  2. Start with paper trading. If you really wants to learn from Stock market action then only “Start with positional trade without using margins”.
  3. Learn Technical and Fundamental analysis.
  4. Don’t take any advisory service.
  5. Access your risk ability and only take positions in which you are comfortable with possible loss.

P.S : Learning from own and others mistakes is key to success.

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  1. Dont trade in stocks with low volume. Try more to trade in FNO stocks even if u do in Cash segment in same stocks

  2. Whenever it seems something is very obvious, first see how market is behaving before making up your mind to go long or short. For e.g. PCJeweller announced buyback on May 25th, every retailer jumped to buy it, it went down. Another example, Axis bank results in April were very bad, every retailer shorted it, but it went 8% up.

  3. There will be lot of fake upmoves in nonsense stocks like RCOM, JPAssociates and PCJewellers. Suddenly these frogs will go up 4-5%, and then keep coming down.

  4. Dont trade just when the Quarterly results come out during the day. Stock usually goes up down up down many times, all stop losses will be hit. But if results come in evening, and next day morning stock seems to go up, that is more believable move.

  5. Sometimes news channels will trap you. Like Biocon was up 9% on Friday, then CNBC discussed it in news. Then it kept coming down.

  6. Cases like IDEA which went 5% up in morning on Friday, becoz govt. approved merger. But it was not a good trade to take because this news was already in discussion for weeks. So it was a “buy on rumor, sell on news” case. IDEA went from +5% to -1% on same day. Usually any news which comes suddenly evokes a real movement, and any news which is there for weeks and finally gets confirmed, dont take trade on that news confirmation.