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7 Way to AVOID loose money in stock market

Sunday, August 9, 2009 | Labels: , , , | |

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How should avoid to lose money in stock market?
We come to market to make money. This is crystal clear if you expect to easy earning, there is high risk of lose capital. “There is action ,there is equal and opposite to reaction” This participle stated that by Newton. This absolutely fit at market. How much you expect profit is equal chances to lose money. There is no any tailored made formula to avoid losses and only taste profit. If it will be in existences , No! Doubt! You will read this article written by next billionaire.
Then you think that why give this article with heading that “How should avoid to lose money in stock market?”

This is very clear , there is no tailored made formula to avoid losses . There is some old ages wisdom which will help you to avoid losses. There is some successful trader, they use certain basic thing to avoid losses. When I learn to trade, that time come to many conman things, but I overlooked them. As time passes I personally agree on that simple things, but with paying high price for them. So I want to insist you to read this wisdom and try to use for your investment.

  • Your expectation should be clear with your limitation
When we come to market, that time we always expect than banking interest rate. With gaining trade we for get that. Our expectation turn to greed. We want more and more profit from each trade. This will throw us in deep valley of loss. So your expectation from market. How much return you expect.? . Understand your limitation. Limitation on front of capital, knowledge and so many things.

  • Don't challenge to market
Market has much potential to give you good money, also have potential to suck your hard earned money. Rather than giving challenge to market, use them in favor of you. That means trade with market trend.

  • Educate yourself first
In normal life we get education for survival life by any profession. We consume almost 20 years of life for pursue education.
We entered in market with only few words of knowledge, so every one must spend some time to educate for market. I don't suggest that you spend 20 year but at least give 20 days, 20 months. This small time will feed you life long.

  • Stay long term to get good return
This thing is same as like bank Fixed Deposit. If you want good money then you must stay long to get reap fruit.

  • Partially book profit on your investment always
When your portfolio in profit, book partial profit. By getting partial profit you get aid to stay long.

  • We come to market for home, so always give first preference to our home
We come in market for get money for our family and personal life. So always give preference to home. Then give time for market. Always maintained harmony between home and
Always made experiments with your own investment.

  • Avoid loan to raise capital
Always invest in market through your spare money. Don't use loan money.

There are credit provided by broker to you, it is always dangerous for your capital. Broker allow you to take position more than 400 to 500% big than you capital. If you have 10000 Rs then you can buy stock of 50000, but you have sale it in stipulated time period. The If you will find 4 to 5% percent lose money in money is goes to 20 to 30 percent for your capital. This credit will chew your capital. So always use your own money.


This sentence looking you simple, over time you will understand there value. If your wise you understand there meaning now. You will found yourself successful trader very soon.

For gain awesome use 18 Golden Rules of Trading

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2 Comments:

  1. Easy Ways Of Earning Money says:

    There are lots of factors to determine if you really want to start earning money online. Time is a big key to determining if you want to make a lot of money or just some extra pocket money. It takes time to earn a good income.

  2. Easy Ways Of Earning Money says:

    There are lots of factors to determine if you really want to start earning money online. Time is a big key to determining if you want to make a lot of money or just some extra pocket money. It takes time to earn a good income.

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