Profit in Stock Trading: 8 Important Things to Follow ..!

Most of us have to engage in stock trading; There is a lot of desire to make a profit. But in practice the profit margin is very low. The reason is that we do not trade stocks properly. Let us look in detail at the important aspects that need to be followed to make a profit in stock trading. Compared to stock investment, stock trading is high risk. The more patience is needed in stock investing, the more speed is needed in stock trading. When it comes to stock trading, it can be divided into three types. Day Trading is the act of buying and selling on the same day or selling on the same day. Swing trading is the act of buying and holding stocks for a few days to a few weeks. Holding and selling stocks for up to a few months is short term trading. The following eight things must be considered when trading a stock in any of these three modes. 1. Loss prevention is essential Stock trading should not be done without a stop-loss. This stop loss is to protect the stock traders from big losses. There is an order called Stop Loss Order when trading the stock. If the share price falls below a certain level and the stock price starts to fall contrary to their expectation, they can exit the trade with less loss by using this stop loss order. Doing so will save you a lot of big losses and keep you on track to trade the next day. A good trader will be the one who admits that three out of ten trades can end in failure. 2. It is necessary to follow the technical analysis Some stock traders trade on the advice of someone. They do not carry out their own technical analysis. Knowing the technical analysis, what is the demand for that particular stock? Details such as what the volume is will be revealed. Based on this, it is possible to predict whether the share price will go up or down. It is necessary to know the technical analysis in that category. Let’s go to training class for that; You can buy and read books. The biggest mistake that can easily get your claim denied is to fail. It will come at a huge loss. It would be profitable to study technical analysis properly, know the details and go into stock trading. 3. Following the trend Generally, your friends call the trend in stock trading. That is, trading following the stock market or stock trend can be profitable. Is the stock market or stock market booming? The risk of loss is 50 percent brighter when entering the trade without knowing whether the trend is on the downside or not. The market is on the rise. It would be profitable to trade in that direction. Therefore, it is always better to follow the trend and engage in stock trading. It is imperative to set a stop loss when trading against the trend. Only then can more losses be minimized. A good trader will not trade anything unless the stock market or the trend of the stock is clear. He would just be watching the fun. Also, it is always good to trade in stocks with high volume. 4. Not following others Rumors and suggestions in the market are coming up on various social networking sites like Facebook, WhatsApp and Twitter. Ignoring them all, only traders who engage in stock trading based on their own research make a profit in the stock market. If you act like a herd, it is difficult to make a profit in stock trading; Loss is more likely. Tips, Suggestions Even if they come, you can make a profit by researching and selecting and trading them. 5. Adhere to a consistent trading system Profit in Stock Trading Most traders follow the standard exclusive trading method as they see fit. Changing the trading system frequently is the biggest mistake. It will often go to waste and stop. 6. Avoid doing average If the stock price starts to fall instead of buying in anticipation of the stock price rising, good traders will sell out if the stock price falls below the stop loss. Some will begin to average it when the share price starts to fall. By this they think they are reducing the loss. But they really add up to a loss. Lowering the stock price average can be profitable for a long-term investment. But, it will not be so profitable for short term trading. 7. Avoid trading stocks in penny stocks Well-informed stock traders do not trade in penny stocks called penny stocks. The reason is that the fundamentals of companies in penny stocks are weak. Also, it is very difficult to accurately predict the trend of those stocks. 8. Taking out partial profit ..! Those who are good debtors have good returns on a stock trade. They have the habit of taking out partial profits even though they are still likely to climb in the short term. Doing so is good in a way. In practice it can be seen that small profits together become very high profits in a given period of time just like a small drop is a big flood. We have explained the useful features that will help you to perform better in stock trading. Congratulations on making a profit. Mandatory rule to follow ..! If there is continued profit or loss in daily stock trading, it is better to end the trading in a hurry. This is the main rule that must be followed. A float will come as the profit continues to rise. After that there is a possibility of loss when trading as an assault. Similarly, it is better to stop trading that day in case of one or two losses. The reason is that the less likely you are to be in a clear mindset in a business that continues to be frustrated by the loss.

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R K G Capital Gains

Certified Equity Research Analyst, Technical Analyst , Investor , Trader , Trainer and Mentor

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