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Equity market is a large market trading platforms in the modern sense of the world where investors buy and sell equity shares. To engage in this effort of buying and selling equity shares the investor would be required to follow certain rules, to enable a successful and profitable conclusion to their transactions or trades. A lot many people stay away from the equity market thinking that it is something only knowledgeable and experts can deal in and that you require years of experience before you jump onto it and spend both time and money in the process. The Equity Tips come in very handy even during the most difficult of transactions that you may make eventually. Equity trading or active investing should be based on every day trading rules. These rules help to maintain discipline, which is one of the most important aspects of equity and stock market activities. Some of these rules of equity market trading are mentioned below. 1. Make Investment in Larger Companies: Investing in the larger companies is always profitable there is less chance of risk rather than the small companies. Make investments in the larger companies with price-earnings ratios (P/E) of 10 or below. Keep investments limited to the top 2 - 3 companies in each industry or service group. Invest in companies operating in high growth industries. 2. Be Prepared with a Trading Plan: For successful trading always keep your plan ready before entering into any transactions. One must prepare a Watch List or Probable candidates for Day's trading and remain focused on the movement of those equities and stocks only. Proper planning of trade should be done by keeping watch on Equity Tips. 3.Selling on Proper Time: The best time to sell usually coincides with the stock market boom. Periodic review and reconstruction of their investment portfolio enables investors to take advantage of market swings and new buy opportunities. Necessary for regular adjustment of capital gain/loss for tax purpose. And also to provide for regular spending money to meet seen and unforeseen expenses. 4. Follow the market trend: Even the most sophisticated analysis cannot predict which way the market will move. All technical factors may be bullish but the market may decline. Technical factors only point to the likely movement of the market, they don't guarantee it. If the market movement is not as per your expectations, don't try and be a contrarian. You may end up losing more. 5. If you are not clear don’t trade : Many Traders, because of their daily habits trade even when there are no signals to buy or short. Normally such situation arrives after a sharp rise or decline when stocks are adjusting their values. While some stocks attempt to move up, few may be taking breather before next move. Such situations are often confusing. There is no harm in taking rest for a day or two or short period if the trend is choppy, unclear or doubtful, instead of putting your money at higher risk. 6. Don't expect Profit on Every Trade: If you consider you are a smart trader who can make profit on every trade, you are 100% wrong. Always be flexible and accept the fact as soon as you realize that you are on wrong side of the trade. Simply get out of the trade without changing your strategy during the market; it may cause you double losses.
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