INVESTOR AWARENESS PROGRAMME
Introduction to equity or Commodity Market.
When we talk about Indian equity or commodities market.Its being clear that we are in a financial jungle where a lay man is unable to understand why the price of a particular stock or commodity is fluctuating.Again most of the traders or beginners says when we purchase, market used to fall when we sell market used to rise.If you ask them about their percentage of return on their investment from stock or commodities market, they say they are recovering their previous losses,but to recover the same they are again incurring more losses.why it is happening?why it is happening? Why it is happening?The similar question arises in each & every new investor or trader’s mind.Always they are in search of service i.e assurance of the return on the investment or no capital loss.With that question each investor is running from broker to broker & opening new demat & trading a/cs .At last with huge loss either he is leaving the market or trying to bargain for less brokerage with his broker or taking a franchise to get some sharing of brokerages. Very few pople those remains in market with adverse situations.They get experience & they also learn from their mistakes.Which make them gain from the market always.No bull or no bear matters for them they always become winner of the market.Here we are giving some tips to be a winnerfor trading.
Know your Risk Taking Capacity
Always invest disposable money in stock or commodities market.Disposable money means the money which will be invested for a longer period or will be completely dead then we will not face any problem.For example. If a person earns Rs10000/- per month for him Rs1000/- will be disposable.But for a persom earning Rs100000/- per month ,For him Rs10000/- to Rs15000/- can be disposable.Many times it is experienced people having money for daughter’s marriage,child’s education,etc invests in market.Once market gets corrected they face problem.So never invest savings for most urgent needs in stock or commodities market.Again the investor himself only can know his disposable amount or risk taking capacity.There is a risk & return expectation chat which shows for how much return we can take risk up to what extend .If you loss 5% .
|Expected Risk%||Expected Return%|
From the above table you can judge if you are incurring small loss or putting a stop loss for a 5 to 10% risk you can atleast recover the same easily but for huge profit like 90% return if you incur more than 50% loss it will take much time to recover the same.So always minimise your loss with a stop loss if market goes reverse.
Before Trading get maximum information on the market & Always stick to the calls exactly & use stop loss.
Most of the time people used to take positions without any logic or without any fundamental or technical updates.Before taking any positions plz try to know the day to day macro & micro economic changes around the globe.Always stick to the calls provided to you.When ever any stop loss triggers plz stick to that.Never wait expecting your price to come if market trend goes reverse.
Never Use leverage or exposure
Try to avoid leverage or exposure.Always trade within your money.If in case you are using leverage then never carry open positions blank.Always make your leveraged position hedged.
Be clear wheather you want to do day trading,investment or positional trading.
Many times it is observed certain clients are unable to differenciate what they want to do,They even donot know wheather they are day traders,investors or positional traders.In this case we suggest people involved in stock or commodities market must be clear on their objective.One day trader must not carry overnight positions.Where as a positional trader or investor must have sufficient fund back up to save their positions in case of adverse situations.
Most important is take small pay outs of profits stick to calls & enjoy
Whenever you are getting profits plz take small payouts. Or invest the same in some long term assets.Never forget to stick to calls,entry,exit & stop loss.Also modify ur stoploss from time to time instead of booking small profit when you want to wait for a big profit.For example call given buy silver at 57000 sl 56800tgt-58000.If price is now 57500 then modify stop loss to 57350 instead of booking profit if u want to wait for 58000.Once price moves yu modify your stop loss to higher levels .When target achieved book profit,then relax & enjoy....
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