
Originally Posted by
panchabhut
Some useful tips for putting money in the stock market
1. Stock market is a gamble. So invest only that much u can afford to lose. never invest borrowed funds.
2. One needs to follow the scrips closely. Its not a philosophy of "fill it, shut it, forget it"
3. Always set ur own stop loss. ideally 20% would be a good level.
4. When the prices are rising, once the increase is say 25-30%, sell a part of the holding to at least get the principal amount out.
5. Always listen to ur head and never to ur heart. stock market is nor for those who are guided mainly by emotions
6. Day trading is good as long as u r not greedy. once a profit of around 1-1.5% is reached, close the open position. Even a profit of Rs.500-Rs.600 per day gives a monthly profit of above Rs.10000.
7. never put all ur money in one scrip. Diversity is absolutely essential for risk reduction.