The coolest way to make life-changing wealth in the stock market is to grab stocks before they get expensive & too popular, and ride them all the way up.But most of the common people can not tell/judge the difference between an undervalued stock & one that is cheap because it is garbage. Following are few useful suggestions for investors/traders.
1. Don't emotionally attach yourself with your Trades/Investments.
2. Don't short any share when it's on life high/52 week high valuation.
3. Don't feel less PE shares are always good buy.
4. Don't feel high PE shares are always bad buy.
5. Don't invest all your money in single share/sector.
6. Don't ever short shares in day trading , it may not be squared off till closing and HUGE loss you have to bear via auction , especially in case of any Corporate Action / Announcement during this period.
7. Don't feel that there are defined targets/stop losses , it's actually only support/resistance which usually work.
8. Support/Resistance is nothing but demand / supply emerging on certain levels based on people trapped in these ranges.
9. If you have lost huge money in markets - its certain that all money could be recovered from markets itself provided you have deep knowledge/experience OR best guidance from market specialists.
10. Don't feel that HUGE debt burden companies are always BAD and DebtFree are always GOOD ones.
11. There are several factors/parameters , only after studied a LOT we must invest in markets.
12. Nothing is better than the practical knowledge of markets, technical & fundamental analysis are also not always profitable decisions as there may be HUGE buying / selling from BIG funds/institutions.
13. In case of Delivery Positions - Placing STOP losses could be fine but if you are so sure about the research, there is no need to place STOP losses as there will not be any HUGE overnight change in any company, Yes if you are doing day trading/F&O trading the stop loss is a must to avoid HUGE losses / regrets .
14. It's really important to review your investments at least on quarterly basis when company results/performance comes out.
15. In this market there are thousands of advisors, few of them are not even aware about the BASICS of financials so think before investing your hard earned money.
16. Don't ever leverage your F&O positions, this is the major reason when people have to bear HUGE losses.
17. Be patient enough and don't be compulsive trader/investor , this market is not going anywhere, you may get several chances in future as well.
18. Don't ever rush to book profits, if you want to rush you may book your losses.
19. Don't always follow the news/rumors rather invest based on deep research only.
20. No technical analysis stand in case of HUGE crash in markets but yes your detailed research will save you in such market conditions as well.
21. We recommend to do mock trading first till you feel comfortable enough for actual trading/investing your hard earned money.
22. Don't believe blindly on any trading suggestion till you are convinced enough.
23. There are several such people in market who are interested in their brokerages nothing else and hence they usually suggest you for very frequent trading.
24. Most dangerous and risky trading mode are Short Selling in Day Trading , Buying in Day Trading , Futures Trading , Options Trading which could lead you in HUGE losses if these are not based on deep research, so we recommend only investing for short/long term via having delivery of good stocks.
25. We recommend our clients to have at least BASIC knowledge about the stocks they are entering in.
26. Don't ever trade in panic, there may be several environmental/global factors your stock may fall but if its fundamentally strong enough your money is not under threat.
27. Don't believe in buying less price stocks OR shorting high price stocks rather strategy should be reverse to that.
28. Never invest on the basis of life low / life high price compare to current price.
29. High dividend yield is good but should not be a single criteria to invest in as there may be other adverse reasons to stay away.
30. We recommend to have all your equities in your own hold not with your broker/sub brokers HOLD.
31. Don't ever think that stock is suddenly on too low price there may be n number of reasons behind this eg - Stock split, bonus, ex-dividend, merger , de-merger etc.
32. Don't compare your returns/trades with others as you never know how much others have booked as profit/loss in their past .
33. No one is 100% perfect in this area, if you see our country's best analyst/traders - they have also made several mistakes and they have non performing stocks in their portfolio.
34. Don't feel that good news is always be good for you as well and bad news will always be bad for you , be patient and take decisions with cool mind only.
35. There are n number of traps for common persons in this market so beware of such traps.
36. Brokerages also vary a LOT , try to bargain with your broker to reduce the same.
37. Be professional enough , don't LOVE the trades you made - exit immediately if these are not based on deep research.
38. Stay focused, dedicated & don't put your entire money in too much stocks/single stock.
39. Don't think that you may always buy on lowest price & can sell on highest price.
40. If your stock is fundamentally strong enough , it doesn't matter the market is going up/down.
41. Remember investment opportunities are always there in market.
42. There are few operators active in few stocks trading who fluctuate the stock prices based on their benefits only.
43. We would say that hundreds of parameters are there one should focus on before investing , we have included in our research process for finding real Hidden GEMs.
44. You need not to average stocks when coming down, most of the time its not profitable as we can not rightly judge the bottoms of falling equity.
45. Try to invest only that much money which you can put at least for few months to avoid short term square off.
46. There are so many policies which are not investor friendly in stock markets which leads confusion among new investors for example different face values for different listed equities.
47. Mutual funds investing is also a better way than investing without having any knowledge of markets.
48. Common persons can't even imagine the depth of the markets so better if investing must be based on deep research or provided by designated experts only.
49. Always try to see behind the walls, think before actions to achieve the financial goals.
50. Don't mix insurance needs with investing needs, these are two different areas altogether and try to have different set of these.
51. To book loss at right time is also a wise decision in the markets.
52. There are so many FIIs/DIIs/HNIs who also got trapped in so many sick companies and are currently sitting on HUGE loss; we say that practical knowledge of analyzing Scrip's is the best one to follow.
53. Lastly but not the least think positive, have right investing attitude ,Trade In Limits & Do either research yourself OR get your financial advisor's support before investing the hard earned money , you may go on bseindia.com site and can find almost every information available , happy investing!!!