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62 Rules Used By Forex, Futures and Stock Markets Traders

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62 Rules Used By Forex, Futures and Stock Markets Traders

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How to trade in Indian Stock/Share Market, Strategies and Rules

Thursday, November 25th, 2010

How to trade in Indian Stock/Share Market, Strategies and Rules

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How to trade in Indian Stock/Share Market, Strategies and Rules

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How to trade in Indian Stock/Share Market, Strategies and Rules

By: reshu jain

About the Author

Reshu Jain

CapitalVia Global Research Limited

(ArticlesBase SC #2670882)

Article Source: http://www.articlesbase.com/ – How to trade in Indian Stock/Share Market, Strategies and Rules

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Indian Stock Market is very vast market where trading is not so easy we have to follow certain rules and conditions while trading in this market. Some of them trade by taking advice/tips from advisory company while rest of them trade on person views and news they get from market. Here in Stock market anything can happen in minutes, this market is very fluctuating like example :-

World stocks hit a one-month high on Wednesday 16 june and the euro hit a two-week peak high because of strong gains on Wall Street. The success of this week’s European debt auctions encouraged risk taking ability. If the one had buyed shares before last week and selled here in this week will probably have huge profit.

The BSE in this week bench mark the Sensex and by this it rose further over 111 points.

The Stock Market is totally depended on selling and buying on stocks, there are many questions and confusions arises in the minds of the people going to BUY or SELL particular stocks, the question may be like:-

Why to Buy the particular stock, i will be benifited or not by doing this?

What is the risk in getting profit? May I sell or wait for favourable time? Etc.

To avoid problems arising with such questions and getting answers you should look over certain facts and figures like:-

One should analyse the stock or company he is going to invest on regarding the financial situations of the company. This can also include comparing the price, financial activity, stability, Market value, Demand etc. of particular company with other companies.

If the condition here is for BUYING, One should always buy any stocks of a company by its Fundamental analysis, this type of analysis shows “Value investing” , “Growth of Stocks” , “Give preference to Dividend Stocks”

Rather if we talk about SELLING stocks then also fundamental analysis is worthfull, like

Sell when you have a recent or current “News Flash” , “Price of Stock is overevaluated”.

Apart from all the questions and answers there is need to follow some rules and strategies for profitable trading in Stock Market, which are illustrated as follow:-

Rules one should follow while Trading:-

1. Divide your capital into 10 equal risk parts.
2. In a single trade always try not to invest 10% of your Capital.

3. Never do over trading.

4. to trade efficiently never average your losses.

5. No guessing on Tops and Bottoms always trade on confermed News.

6. Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.

7. Never take lead you may loose heavily.

8. Don’t follow tips only.

9. Risk should be distributed differently among different Market.

10. When you lose don’t blame it on luck.

11. Don’t trade if trend not clear

12. Never limit your orders. Trade at the markets

13. Only trade active markets.

14. Bear markets have no support and bull markets have no resistance.

15. Never buy a stock to get dividend.

16. Avoid partnership in trading accounts.

17. Buy on rumor and sell on news.

18. Never let profit turn into loss.

19. Decrease your trading after a series of successful trades.

20. Never buy a stock just because it has fallen from a great high, nor sell a stock because it is high priced.

Strategies one should follow while trading:-

1. Always develop a winning Strategy in market while trading, never ever try to earn profit instantly and all together in one turn always have patience because small profits daily can give large anual return.

2. Winning strategy is a strategy with the lowest risk/return ratio.

3. Always be sure that expected return is larger than the transaction cost (bid-ask spread + brokerage commissions).

4. Never fear losses, be brave enough and always keep in mind that stock market is the place where one looses and another gains.

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reshu jain -
About the Author:

Reshu Jain

CapitalVia Global Research Limited

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Forex: Professional Market Investor Reveals A Short-Cut To Mastering Stock Market Investing Rules

Tuesday, June 22nd, 2010

To operate effectively in any forex market investing environment, you need rules and boundaries to guide your behaviour. No matter what system you`ve developed, the potential exists to do financial damage to yourself – damage that can be greater than you think is possible. There are many types of trades which the risk of loss is unlimited.

To prevent this kind of loss, you need to create an internal structure in the form of guide lines that determine your behaviour so you always act in your own best interest. This structure has to be internal because the market won`t provide it for you. The markets provide structure in the form of behaviour patterns that indicate when an opportunity to buy or sell exists. But that`s where the structure ends; with a simple indication. Nothing happens until you decide to start or forex market investing; you continue to trade as long as you want; and there is no end until you decide to stop.

All the beginnings, middles, and endings of your trades are the result of your interpretation of the information available from the market. However, while the average trader may want the freedom to make these choices, but that doesn`t mean they are ready and willing to accept the responsibility for the outcomes. The reality of forex market investing is that, if you want to be successful, you have to accept that no matter what the outcome may be, you are completely responsible. Not the market, not the economy, not world events – you.

Traders who are not ready to accept this responsibility can find themselves in a dilemma: How do you participate in an activity that allows complete freedom of choice and avoid taking responsibility if the outcomes of your choices are poor? This can be accomplished by adopting a forex market investing style that is random. Random trading can be defined as poorly planned trades, or trades that are not planned at all.

Randomness in trading is unstructured freedom without responsibility. When we trade without well-defined plans and with an unlimited set of variables, it`s very easy to take credit for the trades that turn out to our liking, because in our minds we used some kind of method. But at the same time, it`s very easy to avoid taking responsibility for the trades that didn`t turn out the way we wanted, because there`s always some variable we didn`t know about and therefore couldn`t take into consideration beforehand. Random forex market investing is an unorganized approach that doesn`t allow you to find out what works and what doesn`t.

If the market`s behaviour were truly random, then it would be difficult, if not impossible, to create consistent results. If it`s impossible to generate consistent results, then we really don`t have to take responsibility. However, direct experience with the market tells a different story. The same market behaviour patterns present themselves over and over again. Even though the outcome of each individual pattern is random, the outcome of a series of patterns is consistent and statistically reliable.

These patterns can aid your forex market investing if you choose to use a disciplined, organized, and consistent approach. Many traders spend hours doing market analysis and planning trades for the next day. Then, instead of making the trades they planned, they do something else. The trades they make are usually ideas from friends or tips from brokers. By making unstructured, random trades, they are able to avoid responsibility.

Why would they do this? When you act on your own ideas, you put your abilities on the line and get instant feedback on how well your ideas worked. It`s difficult to rationalize away any unsatisfactory endings, since they`re the direct results of actions. On the other hand, when you enter an unplanned, random trade, you shrug off the responsibility by blaming your friend or broker for their bad ideas.

The nature of forex market investing itself also makes it easy to escape responsibility. Any trade has the potential to be a winner, whether you`re a great analyst or a poor one. It takes a lot of effort to create and follow a disciplined approach that will make you a consistent winner. But, if you invest the effort, you can achieve success as a trader, and reap the benefits of the market.

Who Else Wants To Learn A Simple, Step-By-Step System For Generating Quick & Easy Profits, Trading Forex? – FREE FOR A LIMITED TIME – http://www.forexcurrencytradingsystems.com/index.php

Tags: Forex, Investing, Investor, Market, Mastering, Professional, Reveals, Rules, ShortCut, Stock
Posted in Stock Market Investing DVD | No Comments »

The 5 Rules For Selling Value Stocks

Friday, June 18th, 2010

The next most important question people ask is when they should sell the stock to take their profits. When you need the money? When the price has gone up by 20%? 50%? 100%? Well, as a value investor, you cannot just look at the price to determine if the stock should be sold. You must look at the price in relation to the intrinsic value of the stock. Even if a stock price increases by twenty times, you should still not sell if it is undervalued. This is because when you own the stock of a company that is consistently increasing its earnings & cash flow, the value of your stock will keep increasing over time! By holding on to your shares of stock, you enjoy the power of compounding.

Here are the 5 rules to help you decide when is the right time to sell your shares.

Sell Rule #1: Sell When The Stock Becomes Overvalued

During a strong bull run or during a period of renewed investor optimism, the price of your stock may rise so fast that it begins to overtake its intrinsic value. When you find that your stock is way over-valued, it may be a good time to sell and take your profits.

Sell Rule #2: Sell When the Business is No Longer Great

Even the greatest businesses can lose their greatness one day. This is why you need to regularly review the financial performance and health of the stocks you own once every quarter (when the financial results are released). If you notice a negative change in one of the first seven criteria for value stocks and the change does not seem temporary, then you should sell your shares immediately.

Sell Rule #3: Sell When You Need the Money for a Better Investment

Another reason to sell is if you happen to identify an even better company that is selling at an even bigger discount to intrinsic value. Even though your current stock is still good, you may want to sell, take the proceeds and put it into an even better investment.

Sell Rule #4: Sell When the Stock Reverses into a Downtrend

All great stocks may reverse into a period of downtrend from time to time. It could be the result of some kind of bad news that has hit the company (e.g. new product failure) or the market as a whole or it could just be that professional investors have lost interest in the particular stock or sector for the moment. Even if the company is still great and even if the stock price is still undervalued, I highly recommend that you sell the stock at this time. This is because once a stock goes into a downtrend; there is no telling how low the stock will continue to go.

No matter how great you think the stock is or how cheap the price is, you should not fight the short-term psychology of the market. One thing I have learnt is to never fight a trend, it is just too

powerful to be ignored. However, once the downtrend weakens and the stock price begins to stabilize again, it would be wise to re-enter and buy back all your shares at an even lower price!

Sell Rule #5: Sell If the Stock Price Drops 20% Below Your Purchase Price

This final rule is known as a cut loss rule. Although it is usually ignored by emotionally-weak investors, it must be religiously adhered to by all investors who are serious in making consistent profits over time. So, why sell a value stock if its price drops 20% below your initial purchase price? Well, if the stock you are buying is truly undervalued, then it should not drop in value by another 20% or more. If it does, then there could be a possibility that there is something wrong with the company that you do not know. Remember that no matter how great a stock picker you are, you will still make mistakes and pick bad investments. The greatest investors in the world know that they can never be right all the time. The important thing is to minimize their losses when they are wrong and maximize the profits when they are right!

Adam Khoo is an entrepreneur, best-selling author and a self-made millionaire by the age of 26. Discover his millionaire investing secrets and claim your FREE bonus chapter of his latest bestselling book ‘Secrets Of Millionaire Investors’ at Secrets Of Millionaire Investors.

Tags: Rules, Selling, Stocks, Value
Posted in Value Stock Investing | No Comments »

Stock Market Rules: 50 of the Most Widely Held Investment Axioms Explained, Examined, and Exposed

Thursday, June 3rd, 2010

Product Description
Unwritten rules of Wall Street–what works, what doesn’t, and how investors can tell the difference Investing is governed by unofficial rules, passed to investors through brokers, the financial press, and even fellow investors. For more than a decade, in two previous editions, Stock Market Rules has helped investors separate the most valuable of these maxims from the meaningless and even potentially harmful. But with recent market turbulence and scanda… More >>

Stock Market Rules: 50 of the Most Widely Held Investment Axioms Explained, Examined, and Exposed

Tags: Axioms, Examined, Explained, Exposed, Held, Investment, Market, Most, Rules, Stock, Widely
Posted in Stock Market Books | 5 Comments »

2008 USCA Federal Rules of Civil Procedure Title 28, Rules 23.1 to 26

Friday, December 18th, 2009

Product Description
Contains laws of a general and permanent nature under arrangement of the Official Code of the United States with annotations from Federal Courts…. More >>

2008 USCA Federal Rules of Civil Procedure Title 28, Rules 23.1 to 26

Tags: 2008, 23.1, Civil, Federal, Procedure, Rules, Title, USCA
Posted in Rule One Investing | No Comments »

Stock Market Books

Posts Tagged ‘Rules’

62 Rules Used By Forex, Futures and Stock Markets Traders

How to trade in Indian Stock/Share Market, Strategies and Rules

Forex: Professional Market Investor Reveals A Short-Cut To Mastering Stock Market Investing Rules

The 5 Rules For Selling Value Stocks

Stock Market Rules: 50 of the Most Widely Held Investment Axioms Explained, Examined, and Exposed

2008 USCA Federal Rules of Civil Procedure Title 28, Rules 23.1 to 26

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