Thursday, July 2, 2009

my trading philosophy : indian share market

1) buy only fundamentally strong shares
2) track the political situation of the country w.r.t your stock
3) check the company news
4) check the company results for the last two quarters atleast
5) check the fluctation level
6) check the high and lows of the share for the last two years and also the months of high and low and why
7) dont be greedy, know when to exit if you are a short-term trader
8) if you are a short-term trader and in losses, best thing is to forget the share for sometime and re-enter, rather than selling the share in loss and re-investing in some other.
9) if the market is not doing well, dont do anything just keep your current shares as it is
10) follow the company's roadmap
11) follow the stability of the company against the sensex and nifty, some shares perform irrespective of the sensex, it grows or falls depending on its own merit, one needs to watchout for this kind of shares carefully.
12) short-term traders needs to exit early, means, if you think that the share can grow up to 100, exit at 80 rupees itself, dont wait till the last moment. You never know.
13) I personally feel, if the loss is not that great (for say...10%) and if you are dare enough to exit and reinvest in something good. Then you are the best. Rather than waiting for the loss to happen even more...for say till 30% and then waiting for it to come up in a year or so. What do you say ?

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