Capital market sees a lot of new traders every day. A lot of people book losses and some even go bankrupt. Why do people always make losses in the share market, why is everybody so afraid of it? These are some of the common questions that come in everybody’s mind before entering the market. If you are a trader or are thinking of trading in shares and derivatives you will find this article interesting and helpful.
There is one single rule to make profits in the share market and it is simple. This one simple rule will transform the way you trade and bring out a positive, money making change in your style of trading. The only way to make profits is to buy when the market is down and sell when it is at the top, simple isn’t it?
It is not as simple as it looks. Almost 99 percent of the people who trade on intraday basis book losses at the end of the day while people who keep their money invested for a longer duration of time almost always book profits. So your planning should go into choosing the right stocks for your investment in a stipulated time period. If you don’t have a financial background or you are not comfortable in choosing the stocks for yourself, you can take help of a financial research firms.
Many discount broker in India provide online learning portal, so you can read and gain the knowledge required to take a matured trading decision. There are agencies who even give you tips to buy and sell shares of some company based on their research. These tips should be executed carefully and only after proper research as it can even lead you to a loss. You must always keep reasonable expectations and give time to your investments. Investing in small amounts at regular intervals can help you make a good chunk of capital after a certain span of time.
There are different types of trading transactions that you can perform online with the help of your trading account. Let’s see a couple of them:
- Intraday Trading: In this types of trading shares or derivatives are bought and sold on the same day. Any orders if not placed before the end of the day are automatically executed by the end of day. This is the most risky way to invest in the market.
- BTST (Buy today Sell tomorrow): In this type of trading you buy a stock today thinking that the stock will open at a good price tomorrow and you will make profit by selling it.
- Long Term Investment: This is the most reliable and sought after way to invest in the share market. It helps you minimize the market risk and help you gain more. This is the only type of investment in which there is maximum profitability for investors compared to the other two types.
Make optimum use of the information above and shape the way you trade to earn good profits.