Surviving The Stock Market Menace

At this present juncture when trading and investing in the INDIAN STOCK MARKET has become tough and challenging, due to economic slowdown in INDIA and across the globe, I am highlighting some points that can be useful for people associated with the stock market either as a trader or as an investor.

1.     The ability to be honest with your beliefs and weakness.

2.     One should have well defined risk management rules.

3.     The guts to withstand market fluctuations.

4.     Monumental confidence in yourself and the system.

5.     Patience and an ability for high probability trade to materialize.

6.     A strong desire to work hard but also to be street smart.

7.    When a trade goes wrong, one should not get emotional.

8.    One should be ready to accept change and modify your trading method.

9.    Keep yourself updated about Macro and   Micro aspects of your country and the world.

10.   Develop a trading style that suits your personality.

11.   To follow strict discipline in your methodology and act precisely.

12.   Keep a stop loss in your trades according to your financial capability.

13.   Follow technical analysis in the stock you are trading. There are support and resistance              levels in all the stocks.

14.   There is always a history to the movement of the stocks. What is the yearly high low and its          movement for the past couple of years.

15.   Listen to the suggestions and advice of the people but take decisions according to your              own thought and wisdom.

I sincerely wish that my suggestions are helpful to traders and investors and I wish that you make a fortune out of the stock market. CHEERS!