Top 10 Rules For Tasting Success in Stock Markets [Beginner's Guide]

Raj January 11, 2012 3 comments

Always remember that investment in stocks should start when the sensex is half from its highs, It will always be a safe stage to play at those weak moments. So it is always recommended to wait for the right time before stepping in to the stock market.
It is good to book profit when the stock price is double to your buy price, this strategy works well for long term investments (atleast sell half of the stocks you are holding, in that way your initial investment will be always safe and you can hold the rest of the stocks in view of future growth).
Never discuss much about your stocks with others, although you discuss make sure you note down the points and make sure your follow those tips in future investment.
It is a safe practice to diversify the investments; it will be good to invest a maximum of 10-20% of your total money in a single stock that you would like to invest in stock markets, in that way you can ensure more loss at times of global recessions.
It is highly recommend shedding your money in stocks which are having the promoter holdings of above 50%.

Usually when the market is in boom it is believed that gold price may come down, in that case it is more beneficial to invest on gold.
Never buy the stock just by watching news, always analyze, study about the company and validate the stock and then buy them if you really feel that the stock has some potential.
Get knowledge on the financial components and data, never blindly follow a person or an institution for investing in stock market, and remember it is your money.
The current generation always works on Speed Mantra and most of the people don’t have patience which directly reflects on quick rise and fall of stock prices, so it is advised to be patient to book some good profits on the stocks which you have invested.
Always remember that you are playing the market which is volatile, so make sure it doesn’t make you stressed because of the highs and lows of the market, we have to remember that Health is the best Wealth one can get.

3 comments… add one

Bharat Mandava January 12, 2012 10:05 am
This is an awesome guide, these days Stock Market is not-functioning as usual, think twice before making any investments.

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Chirag January 16, 2012 9:12 am
Nice one!
Even of you discuss stocks with others follow what you feel is right. There is no harm in taking advice but do what you think is right/perfect (but only after a detailed study)!

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Airgle April 15, 2012 8:03 pm
I would look at their PE first, and research yahoo or google Finance. As to pocket profit, if price is up 15%, then sell it.

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