Dos and Don'ts For Success in Online Trading Share Market

The share market online trading may be working for all, but in life as they say, nothing is perfect. There are still so many do’s and don’ts one has to keep in mind, when taking a plunge in online trading share market. Traders & investors should keep in mind the strategies have scope beyond technology, that have its limitations till certain point.

Do’s- online trading

• Right selection of online broker- Opening online account with the help of a right online trade broker may sound trivial, but it’s very important for your future plans.
• Know where to put money- One must check with the financial advisors and get a clear cut perspective where to invest his money, before venturing into online share trading.
• Understanding- This is very important to understand that where one is putting his valuable money and what return he is expected to get.
• Be diverse in investments- Keep all your eggs in different baskets will help you save maximum of them, on occurrence of mishap. That means the one should diversify in the investments by putting it in different sectors.
• Realistic goals- Set day to day goals for reasonable returns, expecting windfall is no trading.
• Stop-loss- Be prepared for the loss along with the profit. If the trend speaks of continued loss, then it’s better to go for stop-loss.
• Venture on thumb rule – ‘Sell when everyone buys and Buy when everyone sells’. The rule may sound bad advice but in fact it’s the way to earn, with little bit of market study.
• Take long position- Take long position on those companies that have long well tried reputed standing in the trade. Be safe than sorry.

Don’ts- online trading

• Choose the market flow- Don’t be the one track trader, either seller or buyer, be one as per market flow, but only after studying pros and cons.
• Stop-loss not so fast- Strategically, don’t be hasty on check out after small profit or take immediate stop-loss option when facing loss position, wait, watch then act.
• Avoid unregistered brokers- Beware never go along with an unregistered broker. Many frauds and scams have been reported. Don’t learn with your own experience but by seeing those unlucky ones.
• Don’t lunge or plunge- The trade water may look blue but don’t jump in without gauging the depth and flow, especially when you are new to stock market online trading. Check the history, trends and reputation of the companies before putting in your money.

Remember share market online trading is completely unpredictable and unstable. Therefore, look before you leap and follow the above dos and don’ts while trying success in online trading share market.