People assume that they can earn a lot of money by trading in stocks. Trading in shares at NSE and BSE Indian share markets can be quite risky to the investors who are new and trying to be a part of the game. Traders who are new to trading always have a question as to how to earn Money from/in stock markets.
If you are new to trading you need to start with the popular intraday trading to acquire experience and achieve success. Here are some of the stock trading tips to the new traders:
Understanding day trading
Experts suggest that the day trading is not an ideal option for everyone since it requires having a practical approach. Intraday trading involves no shortcuts but an emotional factor, good research, and experience play a substantial role in earning profits. Also, day trading will not yield returns overnight with a single trade and make you rich. But eventually, you can earn and generate profits with intraday with efforts for months. One has to take the fact that profits and losses are a part of intraday trading.
Understand the company
Study the markets with a thorough research and deeply understand the company before deciding to buy shares. Always keep yourself updated with both domestic and international markets. Going through the company updates, government updates and so on will help you in understanding the direction of stock markets including NSE and BSE and what you need to concentrate on.
Have a practical approach
Gain some small profits by selling 2-3 trades, you can short sell and buy at the lower levels when the market is bearish rather than waiting for a big catch. Do not ever put all eggs in the same basket. For intraday trading invest half of what you got in each option and keep the rest amount as a backup.
The Bombay Stock Exchange (BSE) is the world’s fastest stock exchange, which makes it all the more essential for investors to be well acquainted with the stocks available in the market and their respective movements. In other words, if you are not aware of the fastest moving stocks, you will not be able to invest and earn extensive profits. Stock traders also mention that for all individuals looking to earn good returns on their investments, it is essential to follow certain guidelines while trading on the BSE.
Tips to Trade like a Professional on the BSE
The BSE has nearly five thousand stocks listed at a given point of time. Although it is not possible to evaluate the movement of all the stocks on the BSE, you must be well aware of the profitability of the stocks that you wish to invest in. Some of the important bse trading tips are as follows:
- It will be profitable for you to follow the stock trading tips provided by renowned share trading firms. Such firms usually employ financial analysts, who evaluate the movement of the stocks of various companies, to designate whether it is trading in a bull or a bear market. Depending on the analyses provided by the experts, you can decide the stocks you need to invest in.
- It is important to diversify your portfolio. Consider investing in high return shares, such as group A and group B stocks, as well as, Initial Public Offerings (IPOs). With a diversified portfolio, the chances of earning high returns are improved extensively.
Thus, it is essential to be aware of the various trading methodologies, before you can consider investing in stocks and shares. Additionally, you must follow the advice offered by the financial analysts of recognized stock trading firm in order to invest in profitable shares.
One should understand that the stock market cannot fetch you returns only on the basis of luck. Instead, it is a strategic approach that involves systematic investments from time to time. So, mentioned here are 5 BSE trading tips that should be known to traders.
- One Should have predefined Investment and Return goals
The first rule of trading states that one should have predefined investment and return goals. It is important to first realize your financial strength and then go ahead with the investment. Also, setting a bar for your returns ensures that you do not get greedy when the stocks start performing well. It is important to note that greed and fear are two emotions that never let you gain good returns.
- One Should have a strategic approach
Having a strategic approach is important if one wants to ensure a good return. A disciplined approach ensures returns but a haphazard investment that is not backed by strong facts and numbers is money down the drain.
- Do not get emotionally attached with Stocks
One should not get emotionally attached with the stocks. BSE trading tips clearly state that in order to get good returns; one should keep replacing the stocks that are facing a constant dip.
- Do not put all your eggs in one basket
Investing all your money in one place can many a times turn out to be disastrous. So, to ensure that you are securing yourself from such obvious losses, it is the best to divide the sum of money and invest in multiple places.
- Do not believe the word of mouth
The last rule states that one should not believe in anyone’s word of mouth. Your family, friends, and relatives will suggest you hundreds of things. Even though they have the best interest in mind, it is best to back your decisions with proper research and reports.