Some Awesome Tips That Can change Your Trading Approach
Here I am not going to talk about what is Share Market all about or what strategies should a beginner should plan for starting a Trading in the Share Market. What is Future and Option, Intra-day trading approaches in which one should trade?? I really do think that everyone is knowing this basic things about Share Market who so ever are trading in this Share Market World…. YES?
I am here talking about those who are big traders, Trading in Share market Since years. Although many of us are planning strategies, Researching for shares which to BUY and SELL. But after doing lots of planning people fails in earning profit. And they have had to deal with heavy loses.
Some of us are taking advice from advisory and brokers and also paying them lots of money too. Trusting them blindly and what ever call they are suggesting, People are putting all there many on it. What is the result then???Ohh..
Does every one gets profit, On the Calls of Advisory or Brokers???
No “A big No” I can Challenge out of 100, 70 are suffering from heavy loses. They have left with no money Even to tarde further. See Share Market is like game try to invest in it smartly or otherwise be a looser your choice it is.
There are lots and lots of companies that will promise you profit, Accurate tips, offers available, free trails and many more thing. Now a days social media is going so viral and every where there are attractive banners, free calls, free trials suggestion from many companies. All the customers are getting confused from which Company i should take free trail.
And okay they have taken free trial form let us suppose XYZ Company and they got profit too. Now they will trust XYZ and invest in it. What is the guarantee that nest call is going to book profit for you.
If you are trading in the Share Market make sure if you want to earn profit, you have to be very smart in trading.
A Smart approach for Trading:
Top to bottom approach-This approach is all about the Big Picture. The Birds Eye View. Study the economy and decide which industry will do well. When the RBI reduces interest rates in the economy the housing sector, auto mobiles, cement and banks get a boost.
- This is the time to avail a home loan and book that dream home. Take a car loan and pick up that long desired car.
- Banks lend heavily as a number of people avail car and home loans in these times. Banks loan portfolio (amount of loans given) rises and their profits soar.
How to play the stock market?
- In times of high interest rates and a crashing economy you have a bear market .Pick up stocks of blue chip Companies (With strong fundamentals) in banking ,housing, Infrastructure, cement and auto-mobiles in these times.
- These stocks are available at low/bargain rates. This is similar to picking up good leather shoes in the monsoons where retail stores sell them at a huge discount as demand for them is low. Pick up and accumulate these stocks when all run away from them.
What happens when the economy comes back on track (Bull Market)?
- The cyclical stocks (banks, housing, auto-mobiles, infrastructure, and cement) stocks may rise faster than the market (BSE Sensex and Nifty).
- You make a killing in the stock markets when you sell these stocks which you picked up at dirt cheap prices.
Good times don’t last forever
In times of plenty bad times are forgotten but remember even one day of misery can make you forget all the good times. When markets keep rising positive sentiment abounds. You feel that whatever you do you can never fail. This is the time to get control over your emotions.
Set a target :
- When you get 20% returns on your cyclical stocks (banks, infrastructure, auto-mobiles, cement) sell about 50% of the stocks you have bought. When the markets further rise and you get 30% returns on your stocks sell most of the remaining cyclical stocks .Keep 10% of the cyclical stocks back to make a killing. Sometimes you could get even 70–80% returns on the 10% cyclical stocks you retain.
- If the market shows signs of falling sell these cyclical stocks and take whatever profits you get.
