How not to Lose Money in Stock Market : As we Know that Stock market is the riskiest platform for investing your capital as compare to any other investment platform. No matter it gives high returns on your investments compared to others.
Success in the stock market comes with the proper planning, working strategies, knowledge and discipline. Greed is the worst emotion of trader that responsible for major losses in the stock market. Ability to stay out of the emotion while trading and making decisions is one of the keys to become a successful trader.
Here we have some tips and rules that helps you to gain more and lose minimum.
1. Decide your Capital Draw down to keep yourself out of emotions
Before you directly invest in to the stocks, instead of thinking about big rewards, first decide how much percentage you are ready to lose per trade.
i.e. For, positional trades if you have 1,00,000 ₹. you can take 35% of risk. That helps you to keep out of emotions & it is one of the reasons that swipe your whole amount.
Not only for positional trade this will help you more for Intraday trading.
2. Don’t trade blind
Most of the trader blindly invest in the stocks and they just depend on the luck.
First of all, gain proper knowledge and learn different strategies for Investment. Knowledge and experience are key to success in any field.
With your trade setups and always use stop-loss that will minimize your risk and helps you to gain more.
3. Trading Infrastructure
Whenever you start your business or any project, you do proper planning and do all the set up before you directly jump to your business.
But when it comes to trading most of the trader trade without reading charts and they don’t set up the systems required for the trading. You need to build good infra structure that includes screens to watch the charts, Good internet connection as well.
This will create good healthy trading environment.
4. Don’t book profit in a hurry
Most of the traders do trade without proper knowledge and they don’t follow the system. Selling a quality stock on the smallest of negative news is the poor decisions that trader take. Negative news can increase the high volatility in a particular stock in the short run. In this situation you need to be patience and follow the ‘buy’ and ‘hold’ strategy.
5. Don’t get controlled by your emotions
Too many Investors and traders involved with their emotions and it disturb them to take right decisions. They started taking wrong decisions and exit from the trade because of fear of losing what they have. They watch the news and track their stocks too often and when price slightly go down, they immediately sell the stocks because of emotions.
Keep your emotions away to take right decisions and that will help you to follow your strategy also.
The main purpose of Virtueticks is to provide knowledge about stock market and technical analysis through blogs . Not only strategies are important with that you need to learn different things along with them – with the help of our different blogs you can improve your self to become a successful trader.
By, Virtueticks