Few Tips to buy and sell the shares for beginners
I feel if you have an extra income then you may buy share by selecting the standard production of the company for example you can buy the share from Reliance Power who associate and supply the power to the required customer of Industrial business, Corporate business, Domestic usage etc. as these of power supply will never be in reducing its value and prices, plus customer requirement will be increased forever, Power related business never goes down as same as Petrol and Petroleum or Lubricant products hikes etc. in general.
Demat account and its help
Demat account is a must to deal it, and Demat account service provider will also help you in analyzing the share realistic depend on your financial strength and overall interest on it. Though there are different types of share transaction such as Long term, Short term, Intraday etc. Intraday plays a different role in buying and selling the share, buying or selling share for short time must concentrate more than buying a share for a long term as an investment.
How to determine to be success in the share market for buying and selling them?
It is simple question and it has simple answer too but even expert also unaware and unknown any future circumstance of its value and business for a long or short haul. Result could be anyone whether profit or stable or loss on its value that results. It is totally depend on your step, analyze, amount of stress and decision making etc.
If you prefer Intraday rotation then need to concentrate as general as about each company's history on share processed in the past and present also it will be helpful if you check their past record of their different products and shares results etc. keep eye on in the media news but totally don't depend on them which could lead to negative result too.
Timing upon buying or selling the share
Monday to Friday upon buying or selling the share, you must concentrate the buying and selling time differently; buying time can be near about end of the closing day (finally price goes down to a correct one), selling time can be mid afternoon or little earlier than end of the day (price will increase than what you purchase early) which could help you in average benefit than loss for earlier step taken. Patient also play one of the important role in success most of the time, urgency could lead to loss most of the time.
Be Patient and try to analyze
The more you wait before invest and after analyze, the more has a chance to get positive result. Please don't invest whole money in the share market if you have no idea about it. Begin slowly, analyze yourself for few weeks or month, and decide which type of share you want to buy and for how long lasting capacity of yours etc. for e.g. long time (LT) or short time (ST) or Intraday or other method.
Compensate your loss
Compensate your loss by buying worthy share, for example, if you bought X shares of 100 then may be loss for you on net price on a particular day or continuous for few weeks, to compensate its loss, you may then invest a worthy share (by the time you aware about which one is worthy share per your decision) that could help you in recover X losses from Y of buying 100 stable or profit shares.
Few tips on share dealing:
1. Buy share like as above stated Reliance power or Government undertaking banks for long term and wait for your turn
2. Buy or Sell your shares depend on particular timing keeping in mind the market fluctuation
3. Don't invest whole amount in share
4. Analyze market, be patient and watch media news
5. Select the share investing method (LT), (ST) or Intraday etc.
6. Compensate loss from old one to new share purchase
7. A survey a day keep bad decision away
Hafeezur Rahman has joined ISC in 2009 and he is a Job Editor at ISC since 2010, he also a Blogger. Hafeez continue to contribute in various sections of ISC and its sister sites like Techulator, NewRecruitments & Goaspider etc. He is a renowned feature writer & social enthusiast. He loves to write in a simple manner and share his visionary write-ups with the readers on the topics related to his field of interests and different niche. All his write-ups have been popularly read & shared by global readers.
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Very helpful for the beginners.
One must follow to these in order to have success in share market.
Thanks for this lovely article.
Hey all these good tips to begin trading and investing. Appreciate your help for beginners. I would like to know any of your views on COnfidence Petroleum, which is very sharply moving in past 2 months from almost Rs.7/- to Rs.19.25/- as on 24 Sep 2010. Market expects that to touch close to 50's or 70's. May I understand your opinion on this?
Thanks for your feedback, Mr. Ram Swaroop, I was not aware of your reply posted earlier...any how, you can invest in Confidence Petroleum but have to wait for long term, it is not good for short sell...right now it is value in Rs 14.95 - Rs 0.35 (-2.29%), there are few up's and down's at present.
Although we know share trading is a short cut way to make money then why still more than 80% traders and investors are loosing money. The first mistake of trader is they think share market is a money making machine and they try to use short cut, whereas it is true share market has huge earning opportunity fro individual trader but it needs smart cut.
To get success follow those simple rules.
1- Start as a beginner so try to gain knowledge.
2- Read books, articles on internet, do demo practice and pen paper trading to check your own knowledge level.
3- Do analysis of some particular share prices (buy checking news, their results etc).
4- learn money management which is most important to maintain your margin money and profit or loss.
5- Never ever trade by borrowing money (as it involves risk so always trade only with your surplus money).
6- Trade always with small quantity (although it reduces your profit but protect your capital also by making small loss if market goes against of your position).
7- Always do book part profit then you can stay relaxed and if necessary you can buy from below price.
7- Withdraw some part of your profit to enjoy it or else you might face big loss and loose whole profit as well as your capital also.
8- If following other's trading strategy never forget your money management.
9- Learn from each of your trade whether you make profit or loss.
@ Parvat, thanks for your comment and valuable Tips on share trading. These info too will help the traders.