The Most Important 12 Rules for Successful Trading And Fundamental Report

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END OF THE DAY REPORT (20 MAY 2015):

Nifty, Sensex gains led by Financial shares and It stocks.

After a strong day benchmark indices ends higher on the back of fresh buying is seen in index heavy weights IT and financial stocks. Nifty ends above 8400 mark as gains 57 points to ends at 8423 on the other hand Sensex gains 191 points to end at 27837.

HEADLINES FOR THE DAY:

  • IT stocks gains as much as on the back of weakening rupee; Tech Mahindra gains more than 3%.
  • Glenmark Pharma moved higher after the RBI hike FII limit to 49 percent from 40 percent.
  • Jewellery were mixed today on Gold Monetisation Scheme; PC jeweler gains.
  • Reliance gains as raise 200 million dollars through 20 year bonds.
  • Lupin dips despite of approval from USFDA for antibiotic drug Azithromycin.

KEY STOCKS FOR THE DAY:

  • Bharat Forge reported 71 percent year on year growth in Q4 net profit which stood at Rs 203 crore vs. 119 crore, buy stock decline as much as after the company reported that demand in the current quarter, slightly muted compared to previous quarter that is Jan- March quarter.
  • SSWL (Steel Strips Wheels) moved higher as company bagged a new order for the supply of wheels of the Canadian passenger car.
  • Pidilite Industries fall on weak Q4 number, reported a 10 percent decline in net profit at Rs 73 crore against 124 crore in the last quarter.
  • Jamna Auto hits fresh high on NSE in an early trade after reported 5 fold jump in Q4 net profit at Rs 15.31 crore and board of the company had approved Stock split.
  • Tata Power gains after reported better than expected Q4 numbers, 79 percent jump in net profit stood at Rs 145 crore against the loss in last same quarter last year.
  • Infosys gains after the company CEO (chief executive officer) Vishal Sikka, told that they are resuming the growth curve for the company.
  • Shares of SBI moved higher after the bank signs MOU (Memorandum of Understanding) with Amazon identifying areas of cooperation to build a digital India.
  • Shares of Bajaj Finance end of a quit flat to negative note after reported 27 percent jump in Q4 net profit which stood at Rs 231 crore.
  • RCOM dips on the media report that company is planning to buy Sistema Shyam Teleservices (SSWL).
  • NIIT Technologies gains after the company said that they have acquired majority stake in Incessant Tech.

SOME STOCKS FOR NEXT TRADING SESSION:

  • KRBL EQ gains for the third consecutive day with huge volumes and given breakout of its important resistance level i.e. of 176 as well as of the trend line and given closing above it which indicates more buying from its current levels. Buy above 181.65 its next resistance is seen around 184.55 while 176-172.50 with act as an important supports levels.
  • SRF EQ was trading near around its resistance level of 994.90 as could not able to give a breakout in today’s trading session; in daily charts we can see a strong trend line. More buying could be seen it will able to give breakouts of the trend line and its resistance and sustain above it. Buy above 995 targets 1004.90/1015/1025.15 maintain SL of 985.

GLOBAL MARKET:

  • European shares were mixed today concerns over the prospects of a Greek default weighed ahead of a critical June 5 deadline for Athens to reach a deal with its creditors.
  • China shares moved higher as fresh buying seen in Technology Hardware & Equipment, Media and Technology stocks.

 NEWS TO WATCH OUT:

  • Watch out for the Quarterly numbers of CESC, Bajaj Auto, Voltas, Zeel, Britannia and Infinite on Thursday i.e. On 21st May 2015.

Daily News Alerts:

– Indian markets stayed positive today presumably again because of DIIs and partly by FIIs . Spot Nifty had faced resistance in the range of 8420-30 today. Nifty in the future has a moderate resistance at the 8440 level and is seeing selling pressure coming from there; however strong resistance is seen at the 8485-8505 level. Banking, IT, Media sectors saw strong buying today with few exceptions as well.

– IT stocks went up because of weakness seen in INR against the USD. IT companies garner major chunk of their revenues from offshore clients which in turn increases their revenues in INR terms. FIIs seem to have started buying from yesterday but the overall confidence is still looking shaky.

– RBI Governor, Dr. Rajan has acknowledged that inflation has come down tremendously which has also hinted investors that the Governor might go for rate cut once again. However, CRISIL, a rating agency, has said that there is a little room for rate cut at the present scenario. The finance Ministry has drafted guidelines for gold monetization schemes, where an average Indian could keep his idle gold holdings and could fetch low interest loans against it. This gold can be treated as part of CRR and SLR by the banks and the banks could lend cash out of CRR and SLR and could replace it (lent money) by gold and can earn more.

– In the global markets, European markets traded weak over persistent Greece sovereign debt default. “Grexit”, a situation where Greece might take an exit from the Eurozone could trigger same for other countries like Italy and Spain, which will deter Euro as an international currency.

– Oil went down internationally which is good for our country’s finances. India imports 80% of its energy needs and pays in USDs. COMEX Gold is in the range of USD 1200-1212; breakout on either side will pave way for the trend. Overall Gold seems to be building strength to hit its immediate resistance level.

Golden Rules for Successful Trading:-

This blog can be described in detail a monetary investment in the future market. You must be careful that option & future market trading are not suitable for every person.  The level of leverage obtainable can lead to big profit as well as big losses. Previous performance isn’t indicative of future output. If you don’t acknowledge the perils described above, the following resources should not be utilized for the purposes of creating an informed decision throughout an investment option and futures.

Which is the very effective analysis tool in share market investment? This query creates in the mind of every trader. No any doubts, better money management and analysis tool in very profitable buying and selling. Those who possess a sound very professional level money management method would win the whole game. So traders must provide good data, information and Stock Tips to study money management, and it must be previous to starting of the deal.

The first step or formula to become a high-quality money manager is to create a business trading plan. For this, make a structure of trading, an outline and fund allocation. With a share trading plan, we must consider and way prediction of rate and locate the point to sell and buy.

The most valuable and important second step is the risk control and management method. In money or fund allocation, in the single contract or agreement bulk amounts of money is not to be invested. This is not considered a professional level method. Your business plan must be tested and fool proof.

The second step is the risk management technique. In fund allocation, dumping big amounts of money into a single contract is not considered a professional method. The business plan should be fool proof and tested. For testing of your business technique or plan, we can apply the paper trading utilizing associated trading software. Timing and keen observation are another very essential factor for defensive the hard earned cash and making income from the future trading market. Experience is the greatest teacher in the trading, which has no any substitutes. One cannot locate a good deal selection from the any books. Books are very useful only for the guiding person who is studying to trade. During the primary stages, the investors would face lots of hurdles. To face these problems, the books can be made to utilize off. Back test is further technique, which can be permitted to improve the share market trading knowledge, Share Tips and experience. In this matter, we can observe rate variations regarding to the many types of situations. It would always measure the accuracy of the analysis tool; we always used with the prestige of previous market traders and help to gain market experience.

It is significant to wait for the true opportunity in share market trading. Hurry, must be avoided. The future chances and circumstances must be studied. In case of long-term future market investment, the money value and future prospects must also be considered.

In money management,

  • Diversification of your portfolio – Don’t put all eggs in a single basket.
  • Always know the commodity and products, value of essential assets.
  • Proportional fund allotment.
  • Risk to reward ratio – Whole amount of risk must never be greater than the return.
  • Stop loss (SL) to protect from extreme losses and build money management plans and technique flawless.

It is not advisable or sensible that you attempt to become the jack of all trading markets as you might finish up in becoming the experts of none.

Making rules and regulations for future market trading under the highlight of the experience is the after that step for the professional level trade. These rules & regulations will help in share market trading. Whenever any doubt arises in the share market trading performance under any type of circumstances they will provide the direction, equity tips, Nifty Tips and right path towards your aims or target.

1. Adopt an exact trading technique:-

If you want to trade in share market, so you should have a predetermined plan or technique, which includes collection of rules and regulations by which you manage & adhere to, thus shielding you from own self. Very frequently, your feelings will tell you to perform something completely foreign or harmful to what your share market trading technique must be. It is simply by adhering to a preconceived method that you can resistance the emotional stresses & temptations that are continually present in a speculative circumstance.

2. If you’re not confident, don’t trade:-

If you are in a trade & feel unsure of own self, take your all loss or protect your earnings with a stop loss. If you are hesitant of a trade position, you will be influenced by a crowd of unimportant & extraneous details and will most likely end up taking a loss.

3. You must be able to be correct 40% and still possibly show profits.

In the speculating, it would be craziness to expect to be correct all time. A person with the proper share trading techniques and plans should be proficient to cut all his losses short and let his earned run so that still being correct less than half time could potentially immobilize show profits and incomes.

4. Cut your losses & let your earnings ride.

The essential failing of mainly speculators is that they stay a limit on their earnings & profits and no parameter on their losses. A man scorns to admit he is wrong. Therefore, a single will regularly let his/her loss ride, becoming bigger and bigger in hopes that ultimately the share market will rotate around and show him correct. Then later than a while, he begins eager for a few losses and provides up hoping for a profit and earning. Human environment also dictates that a single person wants to take his income right away and thus show he correct.

There is an old saying, “You never go broke taking a small profit.” But you will certainly never obtain rich that method. Being satisfied with very small profits has been the always wrong mental viewpoint for creating money in speculation. If you are accurate when permitting speculative circumstances, you will make out it almost right away and will show earnings quickly. However, if you are incorrect, you will confirm a loss and you must remove yourself from the condition quickly. Taking a few loss doesn’t necessarily denote you were incorrect in your thinking. It basically means that you’re entering timing was perhaps wrong and that you must wait for the accurate timing & situation to permit you to once again the market. Remember, in any tentative situation, the share market is the ending judge. An individual should let the share market tell him when he is incorrect and when he is correct. If you show a big profit, ride it awaiting the market turns about & tells you that you are no long time right, and at that time, you must get out…But not previous two! On the further hand, the share market will also inform you if you are incorrect and it would be a very serious mistake to quarrel with what it is saying.

5. If you cannot manage to pay for to lose, you cannot afford to win.

As we have already stated in Rule no. Four, losing is a usual part of share trading. If you are not in a situation to allow losses, either financially or psychologically, you have no any business trading. In addition, stock and commodity trading should be complete only with extra funds that are not very important to regular expenses.

6. Trade only single markets.

It is very difficult to successfully buy & sell and understand a particular market. It is next to not possible for an individual or single, especially a novel, to be successful in various markets at the similar time. The fundamental & technical and psychological data & information necessary to buy and sell successfully in more than some markets is more than the single or individual has either the trade time or ability to accrue.

7. Don’t deal in a market, that is too slender.

A sort of very few members in a trading market always make it very difficult, if possible, to liquidate a situation at everywhere near the rate you wish for.

8. Be aware of the market trend. (“The market trend is your friend”)

It is very important, that an investor or trader be careful of a highly movement in the share market, either bearish or bullish. When this movement is, at its level, it would be very folly to try to buck it. Well, one should study to identify when a deal is about to follow its course or is close to sleepiness. By a capability to identify the early symbol of exhaustion, the investor will guard himself from lying in the share market too long time and will be authority to change the way and direction. When the share market trend moves, at this time you can take help of broker or adviser. He can provide you Stock Tips, Commodity Tips, market data and all type of market movement.

9. Don’t follow to buy the bottom & sell the top.

It generally cannot be complete you have the aid of a small crystal ball or a few other analysis tools which could be added to the cabbalistic. Be content to stay in the market trend to expand and then take benefit of it once it has been recognized.

10. Don’t answer a margin calls.

This regulation acts as a stop loss (SL) when your situation has weakened significantly. By arbitrarily adhering and dogmatically to this regulation, you will be compulsory to get out of the share market before disaster sets it. It is often difficult to admit you’re wrong and get out of the share trading market (which you almost certainly should have completed well before you obtained a margin call). Conversely, the attendance of a margin call must act as a last warning, that you have let your exact position leave as far as you possibly can (unless the primary margin is outlined with the instability of the contract or agreement).

11. You can typically sell the primary rally or buy the initial break.

Generally, a share market, which very soon established a market trend either high or low will have a any action and good temporary profits can be made by knowing this reaction and captivating advantage of it. For exemplar, in a bull marketplace, the first response will usually be met by investors or traders waiting to purchase the break. This support normally causes the marketplace to rally. The overturn is factual of a bear marketplace.

12. Never straddle a loss.

A loss by own self is very difficult enough to believe. However, to padlock in this loss, thus building it necessary for you to be correct twice rather than the one time (which you before found impossible) is sheer folly.

Following are some of the commonly practiced rules in trading:

  • Always perform your analysis previous trading.
  • Always have a very clear and logical idea of your aim.
  • Never buy and sell on emotions or other person’s forecasts.
  • Buy at support & sell at resistance.
  • Always buy and sell with “STOP LOSS” (SL).
  • Don’t hold a losing position overnight.
  • Don’t add to a losing position.
  • Don’t risk more than five percent of your stock trading capital on a single trade.
  • Always take responsibility for your trades.

If you are breaking any of the rules, STOP TRADING you are uncontrolled.

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