Wednesday, February 24, 2016

Trading Lessons

Trading Lesson learnt


  • Get full report or information before trading and decide the trading plan.
  • Accumulation is good thing  but at the same time chasing price is dangerous and put in the spot and leaves you with waiting/patience. Do not chase the price.
  • Always keep the 35 % percent cash in hand. 
  • Loss comes from the emotion.  Never invest in emotion.
  • One bad stock can take away all your profits.
  • Invest at right time. Even company is good and if overprices do not invest in emotions.
  • Better to keep cash rather loosing by investing in emotion.
  • Be careful with penny stocks. It goes up and down at the same pace. 
  • All you can loose is amount but you have the probability to earn 3 times ,4 times.
  • No one can predict market direction. Use your senses and find out the value and invest. 
  • Do not do too much portfolio changes as it cost transaction fees and brokerages charges which reduces the profit.



RULES
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CHECKLIST
 
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 STRATEGY

  • Find out most shorted stocks with lowest value close to 1 or 2. Buy if "Days to cover " is more than 7-8 days of volume.
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RISK MANAGEMENT


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PROTECT PROFIT 


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