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Tips to Become a Seasoned Trader by Rohan sheth
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Tips to Become a Seasoned Trader |
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Business,Finance & Investment
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Today, people are always looking for ways and means through which they can earn a quick buck. One of the best ways to do this is to invest, but this can be extremely risky if it is not done properly. Basically, there are two investment options in India. You could either trade in the commodity market or in the stock market. However, a number of people choose the latter because of the sheer volume of options and the level of profits investors stand to gain. Online trading, India has developed as a popular option for intra-day trade, which are purchases and sales that are made in the same day. Another option is to hold the shares for two or three days, this is called swing trade. Then there is positional trade that involves holding of the stock for two to three weeks. The amount of profit you can receive depends on the amount of risk you are willing to take on. A person with a great appetite for risk has the potential to gain a lot of money with, the help of an online trading account. On the other hand, there are chances that the trades may not be possible resulting in loss. A good trader knows to capitalize on fluctuations and get in quickly and get out as soon as things take a turn. You must be clear on how much loss you are willing to take on. Once the stocks you have invested in starts to fall, you must have the skill to judge the situation and sell before your losses multiply. There are a number of tips that circle the market, which are made to draw in armature traders. It is important to be sure of yourself and go with your instinct. Do not blindly follow the crowd as you could end up waiting months before you see any kind of profit. Instead of keeping track of the entire market, it is best to identify and focus on a few select shares. It is a good idea to invest in stocks with a positive beta of one or more. A beta of one means the stock will move in line with the market. That if the market raises by 2% the stock will also rise by 2%. It is best to look for a maximum beta of 2.5 and avoid going for anything higher. You must also take the laws of demand and supply into consideration. It is best to buy when supply is more and sell while it is low. In this manner, you stand to gain a good amount of money through trading. It is important to be discipline and not get carried away by greed. So go and start trading today.
Related Articles -
Online trading India, online trading account,
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