Every Stock Market Trader or Investor needs to follow certain Rules to be a successful trader. Even though there are various points to follow, I have listed down the Top 25 points which to be kept in mind. Here we go with the list:
- Select the Top brokers- Open your Demat and Trading account with a Top Broker and Trustworthy Brokers.
- Avoid Intermediaries-Don’t do any stock market trading or investment as per the Tips given by the intermediaries.
- Stay Away from rumors-Follow your own Rules as a Trader or Investor. Keep yourself updated in the market. Always stay away from Rumors.
- Don’t be greedy in market-You can not be a Billionaire over the night. You can not hold the multibaggers stock for a long time. It’s very difficult to get a multibagger stock. Don’t be a greedy in the market
- Follow the Trends-You should respect the trends of the market. Follow the Trends to be at safer side.
- Follow the Market and Price Movements-Before entering in to market please read the market and follow the market and price movements.
- Never be emotional: Never be attached with any stock emotionally. Go with the Trend.
- Do thorough research: You must read all the related documents of the company which will impact the stock price. It can be Balance Sheet, Profit Loss, Cash Flow, Ratio Analysis, Director’s Report, Annual Report, Govt News and Notification.
- Choose the right stocks-Always select the right stocks.
- Select the Highly Liquid Stock-Always trade in the highly liquid stock. With this Highly liquid stock you can enter and exit at any time without any hurdle.
- Take calculated risks: Take Risk as per your potential. Everyone has different risk taking potential. Calculate your own risk and trade in the market.
- Risk and Reward Ratio Analysis-Always Calculate Risk To Reward Ratio.You need to calculate how much risk you can take to the desired reward.
- Use stop loss: Don’t start Trade without using any stop loss. Calculate the Stop Loss before entering in to the market
- Hedge your positions:-Always try to do hedging for your positions if possible
- Always use the Brokerage Calculator to Calculate Profit or Loss
- Select the Sector by doing the Sector Analysis
- Market Sentiment Analysis-Do the Market Sentiment Analysis before entering in to the Market
- Read the Market Behaviour
- Keep in Touch with your Mentor and Experts
- Have proper system
- Have High Speed Trading Platform
- Have High Speed Internet Connection
- Have a secured system
- Don’t give your system to anyone else
- Redressal of grievances: You must not hesitate to approach the concerned authorities in case of any grievances.
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