SHARETIPSINFO >> Articles Directory >>Trading without emotion, best way to trade in Indian stock market
Still today, for many stock market investment is nothing but all about luck. But the reality is something very different to that. There is no doubt about the fact that there are some amount of uncertainly in the movement of the price of the stocks, but certainly there is pattern. There are some methods that can flawlessly predict the future of the stocks. But you have to follow these methods logically, shedding all your emotions and personal views to make profit at the stock market. Remember as a stock market investor you can not afford to fall in love with the stock, nor you can buy the stock of a company simply because you love their product. When you are taking investment decisions – it is not your heart, rather it is your logical mind that you need to listen to.
There are so many stock market investors who suffer huge losses simply because they take their investment decisions driven by their emotions and not by the calculation. But as a stock market investor you must always remember that investment decisions should always be taken depending on the analysis of the stocks and the overall stock market condition. Here are a few tips to help you to trade in stocks without emotions.
Have a strategy and go by them – The basic point for profitable stock market investment is to have a strategy fro investing in the stock market. You have to make the strategy on the basis of the fund you have for investing in the market and your objective. You must have a clear conception of how much risk you are ready to take and what you want to get from you stock market investment. Once you have all your priorities set you need to consider the condition of the market and decide on a strategy and most importantly stick to that strategy while investing in the stock market. You strategy will consider what are the types of stocks that you would like to invest? What is the type of trading that you would like to do? And so on.
Do not fall in love with a stock – At times traders and especially the retail investors fall in love with a specific stock that have given then good return in the past. They do not like to sell the stock even when the analysis of the stock indicates that the price would fall in the future. This is one dangerous tendency that you have to overcome. Remember that stocks are traded to get profit and nothing more than that. If a stock has given you the desired profit and seems to go down you must get rid of them.
Let the analysis speak the last word – Always do your research well and technically analyze the stocks before investing in them. Do your analysis according to the book and take the result of that analysis to be the final word on it. You must always give priority to the fundamental and technical analysis of the stocks while taking the investment decisions and nothing else should be considered.
Trust yourself – There are times when our investment decisions are motivated by the trend in the market. We invest or sell stocks simply because others are doing so. But it is wise not to listen to others while trading in stocks. Of course you should take the tips of reliable sources but you should never pay heed to the panic and rumors and take any investment decisions without carefully calculating the risk and benefits. Give enough time to read the ups and downs of the market and analyze every move of the market and take the decisions accordingly.
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