10 TIPS FOR STOCK MARKET

I am in the stock market business for more than 10 years now . Though 10 years
experience in stock market is not enough, but during all these years I have come

across thousands of clients. I have my observations and suggestions.
First 2 tips which are in my view will protect you and your family from
getting hurt and ruined by the stock market ,,,, financially, mentally , physically , socially

and so on.

1. If you are Investing short term - long term in delivery or in IPO or in MF or the

most dangerous if you are speculating please make sure that the money you are

investing or speculating is absolutely spare money . No bank loans or other

borrowings.

Some people have conviction that delivery based investment or investment in IPO or in

MF is absolutely safe . NO it is not. I have seen my many clients losing huge

amount of money in long term delivery based investment and even in IPO and MF.

Nothing is 100 % safe and secure in stock market . So absolutely spare money for

stock market . If you lose all , it should not affect your day to day life and

your family.

2. Always keep stop loss whether it is a delivery based trade or speculation. People
have tendency not to keep stop loss in delivery based investment, that is wrong .
lets assume that you bought a stock @ 1000 Rs. It is your long term investment.
But you have to keep 20 % or less than that a stop loss, means if price go
below 800 Rs. you have to book loss. Price may go to 200 or 300 or below
than that and might remain at that price for years . So stop loss is must
whether it is an investment or a speculation.

Always remember
RETURN OF MONEY IS MORE IMPORTANT THAN RETURNS ON MONEY

Now some simple tips.

3. Always keep profit margin more than loss . For example lets assume that you bought

a stock at 700 Rs. If you keep stop loss @ 690 Rs. , book your profit above 720 Rs.

4. Be particular in the money transactions. I mean take your cheques in time for your
credits and please do pay the cheques in time for your debits. If your broker
gives you the facility of late payments , please do not avail it. Because this facility
might induce you to do big transactions. and during the course of time you will

be trading beyond your capacity.

5. Please stay away from astrologers and sadhu bavas as far as market tips are concerned.

6. Study the stock you want to invest . When you go to buy a 10 Rs. clay pot , you
check it from everywhere . You even knock on the pot to check how it sounds. But

when it comes to buy a stock , you just buy it on others presumption. Please do not

follow blindly to anyone . Listen to everyone , study the stock and then make your

own assessment .

7. Take minimum of 5 opinions for the stock you want to buy or sell . Among
these 5 opinions Minimum 3 opinions must be taken from business T.V. channels
or business news papers.

8. Make sure that you receive the delivery in your account . Don’t keep them with
your broker.

9. If you are not a professional trader then don’t make this as your prime activity.
Stock market is highly addictive . Concentrate on your main business or job.

10. India is not immune to what is happening in the global economy. So keep some
idea about what is happening in the U.S. , Europe and other Asian countries.

And if you don’t want to follow all these then don’t go for stock market ,

rather go for lottery or gambling . You would lose less money then

stock market.