The lure of big money has always thrown investors into the lap of stock markets. However, making money in equities is not easy. It not only requires oodles of patience and discipline, but also a great deal of research and a sound understanding of the market, among others. Here are basic rules which can help you to invest safely in stock market.

1. Welcome To
Dhanashri
Academy
www.dhanashriacademy.com

2. Basic Rules of Stock
Trading
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If you’re going to trade in stock,
adhere to some golden rules to
help you maximize your success
(or at least minimize your
potential losses):

3. Don’t commit all your cash at once:
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In a fast-moving market, opportunities come up
all the time. Try to keep some cash on hand to
take advantage of those opportunities.

4. Have a plan:
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Try to have predetermined points at which you
cut losses or take profits.

5. Understand that taking profits is not a sin:
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Sometimes, a bird in the hand is worth two in the
bush. Markets can reverse fairly quickly. If you
have a stock position sitting there with a fat
profit, it can’t hurt to take the profit. This action
gives you cash for the next opportunity.

6. Discover hedging techniques:
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Just because you’re bullish doesn’t mean that
you can’t also put on a bearish position. Hedging
techniques protect you when the market moves
against you.

7. Find out which events move markets:
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Research the market and discover what types of
events tend to move it. Serious short-term
traders keep one eye on their positions and the
other on what’s going on in the world.

8. Check the stock’s trading history:
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Charts and related data tell you how a particular
stock has moved in recent weeks, months, and
years. Do you see any seasonality or reliable
patterns that may help you judge future
movements?

9. Minimize transaction costs:
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Keep in mind that because trading is typically
active and short-term, transaction costs are
significant. Therefore, traders who trade
frequently should shop around for brokerage
firms that charge low commissions.

10. Read and learn from top traders:
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Last (but not least), learn from the great ones
out there, such as the legendary Jesse
Livermore.

11. Thanks!
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Suchita enclive, G-1,
A wing, Maharastra Nagar,
Off.L,Road, Borivali,
West, Mumbai 400092
07045654722
www.dhanashriacademy.com
dhanashriacademy@gmail.com