Hello,
You might have already read my previous article about Forward & Reverse trading, if you havent then read it here. Now I will tell some trading tips so according to that you can trade and make profit.
Nobody in the world can surely tell you which share to purchase and when to do it to get profit, if you are expecting that from this article then its waste of time you can leave now.If you are ready to take my advice in a positive manner and work on it then its worth reading.
The time India at which stock market opens is 9:00 AM.
You have to be logged in at this time you have to be ready for trading, choose scripts which has a lot of daily up's and down's ex: Reliance capital, SBI, Axis bank etc... search and you will get a lot.
The basic trend of market is as soon as it opens you cannot predict will it go up or down so wait for almost 10 min, keep watching your favorite company ex: Reliance capital, price is Rs-750. As soon as market opens the price starts to raise say, Rs-760, Rs-765 etc... dont get greedy after seeing the raise of 15 Rs it will through you on road if you become greedy, instead wait till it reaches the highest point ex: Rs-775 then sell the shares ex 10 shares, (reverse trading) now wait till the end of the day the price will come back to original if not to Rs-750 atleast to Rs-755 so at that time you can buy back your 10 shares. You need not sit infront of computer all day just put the price and buy as soon as your company reeaches your specified price it will buy, if you are sitting with computer you can see and purchase if you are going out or cant be infront of computer then dont expect huge margin settle for a lesser margin and buy, this will help you and not go into loss.
Hope you will gain profit as I am doing in the same way.
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Here I will be providing all types of hints, tips and tricks about online stock trading.
Sunday, September 5, 2010
Saturday, September 4, 2010
Forward & Reverse trading
Hello readers,
You might be guessing there are loads of tips and tricks available for stock market trading then why another one...?
That is because here I am not copy-pasting anything from anywhere this is totally my experience of trading and tips which work out for me.
In trading there are 2 types of trading
1) Forward trading
2) Reverse trading
You might have not heard about them but they exist not many people know about them. Most of the people do only forward trading. You have to use both the ways to maximize your profit. Here is the details about forward and reverse trading.
1) Forward Trading : This is the most commonly used method in trading ie, ex: you buy a share of Rs-10 wait for it to go to Rs-20 then sell it, the brokerage company will keep some fee and rest of the amount is yours... This you already know.
2) Reverse Trading : This method is not commonly used or not explained to the customers.
In this method you sell the share first even if you dont have then purchase it when the price drops. This method might not be available with all brokers so confirm it from them.
Advantages : By using both Forward & reverse trading you need not fear if the market is going up or down in both ways you can profit.
Ex: You buy a share at Rs-100 & waiting for it to reach Rs-150 but suddenly the market falls and your share price starts to decrease from Rs-100 to Rs-95 then to Rs-93 then you are under loss now so if you feel its still going to decrease then sell 2 shares (although you have bought only one) and wait for the price to still go down say it comes to Rs-80 then purchase 1 share. So now the math says :
Bought 1share @ 100
Sold 2 shares @ 93
----------------------------
Total is -7 (calculating only one share)
Now one share is still less and you have to buy it right ?
So,
Sold share 1 @ 93
Bought 1 @ 80
----------------------
Total is +13
Hence you are still under profit even if market falls :)
Either way you are going to make profit.
So think and trade.
Next tip will be on Do's & Dont's in Stock market.If you like this article then press this icon .
You might be guessing there are loads of tips and tricks available for stock market trading then why another one...?
That is because here I am not copy-pasting anything from anywhere this is totally my experience of trading and tips which work out for me.
In trading there are 2 types of trading
1) Forward trading
2) Reverse trading
You might have not heard about them but they exist not many people know about them. Most of the people do only forward trading. You have to use both the ways to maximize your profit. Here is the details about forward and reverse trading.
1) Forward Trading : This is the most commonly used method in trading ie, ex: you buy a share of Rs-10 wait for it to go to Rs-20 then sell it, the brokerage company will keep some fee and rest of the amount is yours... This you already know.
2) Reverse Trading : This method is not commonly used or not explained to the customers.
In this method you sell the share first even if you dont have then purchase it when the price drops. This method might not be available with all brokers so confirm it from them.
Advantages : By using both Forward & reverse trading you need not fear if the market is going up or down in both ways you can profit.
Ex: You buy a share at Rs-100 & waiting for it to reach Rs-150 but suddenly the market falls and your share price starts to decrease from Rs-100 to Rs-95 then to Rs-93 then you are under loss now so if you feel its still going to decrease then sell 2 shares (although you have bought only one) and wait for the price to still go down say it comes to Rs-80 then purchase 1 share. So now the math says :
Bought 1share @ 100
Sold 2 shares @ 93
----------------------------
Total is -7 (calculating only one share)
Now one share is still less and you have to buy it right ?
So,
Sold share 1 @ 93
Bought 1 @ 80
----------------------
Total is +13
Hence you are still under profit even if market falls :)
Either way you are going to make profit.
So think and trade.
Next tip will be on Do's & Dont's in Stock market.If you like this article then press this icon .
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