First Rule in Share Market

The Most beautiful place on the Earth to make a fortune and Empire is stock Market provided if we stick to some simple rules

Lets begin our discussion with these basic Questions

Q. Have you ever booked profit at Peak prices?
A. Majority say no.

Q. Have you ever sold shares at rock bottom prices?
A. Majority say yes.

Most of the small investors repeatedly do these common mistakes again and again. How to rectify?

Well my dear investors follow this simple rule. Never buy on euphoric day(News) and never sell on a panic day. If you cannot cope up with the pressure take a trading break. The price at which a stock should be purchased depends on your conscious decision about the future of the company and the time at which to sell the share should depend on your risk appetite not the external market conditions.

1. Before you buy think to buy a company share at wonderful price but not buy a wonderful company .Make a habit to fix profit margin and stop-loss depending upon your capital and risk bearing capacity and trade in accordance with it.
2. The next commonest rule for a profitable trading never ever dictate your terms to market, Market is supreme always respect it and follow it. Easiest way to swim across is to ride the wave not to oppose it . In-spite of all the caution if a trade goes wrong close it at your earliest realize your mistake, forget the trade and march ahead for a new opportunity. Never waste more energy on a wrong trade.(Exit if Hits Stoploss)