Stock markets are driven by greed and fear.
- Fear of losing money

Simple basic rules to tame the Fear Factor

* Always paper trade before putting in your own money.

A new trader should first learn trading through paper trade.
It is the better way to learn trading in stock market. Here there is no is involved and hence no fear of losing money, but one a beginner will experience the entire trading process.

* Only trade with money you can afford to lose

Trade only with money you can afford to lose.
Never trade with the money which is meant for your basic needs, such as food, rent, and other necessary expenses.

* Identify you risk threshold

Never exceed your individual fear threshold.
When the market goes against your trading, try to stay cool and have clear precise exit plans. Implement your trades with logic and common sense.

* Diversification

Never try to put all of your eggs in one basket.
Never invest a major amount of money in just one stock. Diversify your positions by investing in more than 5 stocks.

Investment Strategy

* Get Information Before You Invest, Not After

* Set a well defined objective for each individual investment.

* Be specific

* Be reasonable in expectations

* Consider Risk

* Be measurable

* Buy Low, Sell High. Buy High, Sell Higher

* Buy on the Rumor, Sell on the News

* Buy the Stock That Splits

* Never Buy a Stock Only Because It Has a Low Price

* Avoid Over trading
Use of this Blog indicates your acceptance of our Disclaimer.
Any action you choose to take in the markets is totally your own responsibility. will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.