Friday, August 1, 2008

The points a Stock Traders should take note of before trading

Success in investment and trading depends upon the trader's money management and sticking to decisions. Money management is nothing but protecting one's capital even if it turns out to be losing trade.

Always start small. Start trading with a small capital. Then slowly one can increase the trading capital.

Be aware that one is trading in the stocks for making money not for enjoying the trade.

Always risk the money that you can afford to loose. Most of the traders get wiped out of the trading due this only.

Always trade with a plan. Plan your entry, exit and stoploss very clearly before you initiate the trade. And dont trade the plan after the entry.

The trader you can keep his emotion like greed and fear under his control can succeed in trading.

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