20 Golden rules for online trading which can be useful for you to make a profit.
In order to be successful in the stock market, there are some golden rules for online trading and disciplines you have to follow. It is very important to follow rules for online trading and investing in stock market. The hard earned money can go from your account in a few moments and you do not even know where he went. Therefore, it is very important to take care while investing or online trading. Money can be made from the stock market, but only we have to control the fear and greed. Below Mention golden rules help you to make a profit from the market. Do’s and Don’t List.
1. First Golden Rules for Online Trading is Selection of Good Stock Broker.
If you are new to the stock market and you are thinking of trading online then it is very important to you to have a reliable Stock Broker. The price of shares in the stock market change every second to seconds, so please select a reputable stock broker for a better service and online trading. Brokerage charges is very important for intra-day trading. Higher brokerage charges can convert your profits into the loss. Nowadays Discount Broker is really value for money.
2. Keep Focus on Technical Chart.
It is very important to study the technical charts of each & every stock and focus on the technical chart rather than the watching TV news. Using the indicator in the technical chart you can determine the direction of that specific stock. The technique chart is helpful in deciding either stock is an upward trend or downward trend.
3. High and Low price Breakups.
The simplest idea is that if the stock broke its high point, then buy because the price of the stock is likely to be higher in the future and if the stock breaks its lower price, then sell it, because the stock price is likely to fall in the future.
4. Pivot Point, Support & Resistance.
First, learn how to calculate pivot points, support, and resistance using the pivot point calculator. The pivot point is a very powerful indicator. Simple way is buy the stock at support and sells on resistance.
5. Do not Follow Crowd Behaviour.
Never behave like a crowd, because once the fears spread in the stock market people start selling stocks without any reason. When fear in the market goes away, the stock price goes up again and in the past, it is only loss to you.
6. Follow Chart Trend.
Learn the direction of the market with the help of charts and do online trading according to the direction of the market. Trading against the direction of the market can make you a big loss.
7. Emotion Control.
Do not go in love with a particular stock, if your stock stop-loss falls on the price, then sell it at that price or better way is put the stop-loss price manually in the system and suppose the stock price falls into the stop-loss then the system will automatically sell it.
8. Take a Decision
Do not hold the stock in the hope of revising the price of the stock.If your stock has given you a sell signal on the chart, then it would be better to sell that stock.
9. Invest In good Fundamental & High volume stocks.
If the price of the stock is increasing very fast and the fundamentals of that stock are not correct and the trading volume in the daily market is very low. Suppose that after some time the Downtrend starts, then the speed of the stock’s price drops very fast. Please trade in those stocks are good in fundamentals and trading volumes.
10. Do some study before actual Trade.
Do not blindly follow trading tips, research. Before work on such tips and ideas do some study. Most of these suggestions and ideas have failed. In the market, it has a lot of people who are misguiding you.
11. Creat Good Strategy for Trading.
You can earn good profits from the stock market by having a good study and strategy. Do not gamble by thinking that today is the last day of the stock market. In future, there are a lot of trading Opportunities in the stock market, but once you lose your money, there is no balance left without refraining.
12. Avoid Averaging stocks price.
If the price of the stock drops, then please do not unnecessarily buy back the stock at a lower price to make average. Because of that, your entire money will get entangled in a single stock and you may lose it too much.
13. Be patient to sell your stocks.
Once your stock price come in profit, do not sell it immediately and wait a bit until your stock price goes up to the price you set.
14. Stay away from bad behavior stocks.
There are a lot of stocks in the market, which always breaks the limit of the upper circuit and the boundaries of the lower circuit, and this kind of behavior is very bad for any stock, so stay away from such stocks.
15. Learn about Call-n-Trade Facility.
learn about how to trade by using the call-n-trade facility. If you are in a place where there is no Internet connectivity at that time call-n-trade facility can be very helpful to you.
16. Always keep Updated about your trading accounts.
Keep checking your trading account and Demat account on time. If you find any problem, then inform it to your stock broker immediately.
17. Invest your money in many stocks.
Do not invest all the money in a single stock. Invest in at least 5 different shares. Investing in more stock reduces the possibility of loss.
18. Cant win every Trade.
If you think that you can earn profits every day and you are very clever, then you have a misunderstanding. It is impossible to earn profit from the stock market each and every day. sometimes you may lose your money.
19. Take Some Rest. Shutdown your computer.
It is very boring to look at the market screen continuously, so keep a few breaks between the markets for a few hours. Close your computer and relax for some time.
20. Be Smart Before Trading.
Last but most important Golden Rules for Online Trading is to avoid people claiming that they can predict the market for sure and give you 100% profit on your investment. Nobody in the world does the right to predict the market every time.