[www.wavetimes.com - Elliot Wave tips] SIMPLE STEPS TO TRADE PROFITABLY IN A VOLATILE MARKET:

 

Markets are volatile so is it's nature. When people become complacent about the market it shows its true colors to shake the weak hearted out of the market.

Remembered a few days back almost everybody is certain that this market has only one way to go that is up. See what happened in a matter of days. Now everybody has strong belief that this market will go down. Is it so? Well the answer is the million dollar one. But you can get a clue from the smart 250 points recovery yesterday after a negative RBI policy. We are advocating all along that never ever try to predict the market. Concentrate all your money, mind and energy towards stock picking. Popularly we call it trend is the best friend. Always go along with it. Imposing on the best friend is the biggest mistake we do most of the times.

Well disciplined investment approach works wonders in all market conditions. Follow certain simple and basic rules while trading.

Use trailing stop loss. If you bought a share at 100 with stop 95, when it moves to 103 or more increase the stop to 100 in order to protect your capital

Never trade on even number or round figure. If you want to buy 100 shares at 200 with stop 190 .

*Place the order for 99 or 101 shares

*place the order at 200.55 paisa

*place the stop at 189.45 paisa.

Sometimes numerology work wonders in the stock market.

Keep the price target or stop changing as per the market conditions if required

Online people instead of putting stop use stock alerts or simply put stop on say 1 share to know the stop trigger.

Most important of all In spite of all these precautions if the trade goes wrong just close the call and forget. Never ever try to repair a wrong trade. It is not a shoe. It is a share. Well you may curse me on this, that is my hard earned money how can I forget?

Well my dear investors do not waste your resources on the door which has already been closed rather look for the doors that is about to open.

AGREE with me?

HAPPY WEEKEND

 

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