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Does and Don’t of Trading

13/01/2018

Order in the chaos

There are some basic tips while trading the equities.

  1. Of course you are doing this to earn profit, but like profit, loss is also an aspect of trading. Have courage to accept the little losses so as to capitalize on the opportunity cost.
  2. Patience are always rewarded in share market. So don’t rush to sell a non moving value stock of course unless you need the money immediately or you have spotted a growth stock.
  3. Opportunity cost – This one is actually from economics or management, it is the loss of other alternatives when one alternative is chosen. Choosing a stock is bit of difficult and after choosing one, if it fails to move and the left alternative starts to move, don’t switch your investment just for that reason. Else you will lose both momentum buses. Have patience. (This one behavior will discipline your decision making memory muscle which will also…

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