Trading – things to keep in mind

Podcast Duration: 7:55
Trading - things to keep in mind Namaskar listeners. Angel One ke iss podcast mein aapka swagat hai. Agar aap hamare regular listener hai toh, welcome again dost. Mai bahut hi khush hu ki humare podcasts aapke liye useful sabit ho raha hai and that you are returning for more. It motivates us to bring more and more exciting content to you. Agar aap pehle baar sun rahe ho, toh welcome aboard. Aise podcasts mein, Angel One offers beginner traders basic education they need to begin trading. Aaj ke podcast mein we are going to give you a checklist of considerations to keep in mind while you trade: Do your research Isi saal mein there were a few IPOs that were greatly oversubscribed lekin agar aap un companies ke financials actually dekhne jaoge, you will wonder why everyone was so keen to buy shares of a loss making company. Aap "lots of buzz" ya newspaper publicity ya "well known company" bol ke invest kar ke apne paise risk kar rahe ho. Always keep in mind that publicity, social media buzz can be bought by the company and just because a company is reputed does not necessarily mean it is making profits. Koi bhi investment karne se pehle you must check the company's financial track record, it's potential and future plans and it's historical stock pricing. Reject expert tips and copycat trading Keep in mind that expert tips often work like this. An "expert" will contact 1000 people. 500 logon ko sell karne ka tip dega aur 500 logon ko buy karne bol dega. If the stock price increases, the 500 traders who bought will be happy aur agar stock price gir pada toh sell wale traders khush ho jayenge that they sold before the price fell. Anyhow, half of their contacts khush rahenge. Hamesha apne hi research pe depend kar ke invest karna. Agar aapke dost kisi stock mein invest kar ke kaafi earnings la rakhe hai toh zaroor aapko bhi temptation hoga ki ussi stock mein invest kar ke earnings mil jaye. Lekin earnings also depend on what price you purchase at. Maybe your friend bought the stock when the price was low. There is no guarantee that the price will increase similarly - instead, the next two points will assist you in choosing stocks (besides of course doing your own research jaise hum ne 1st point mein describe kiya hai). Use technical indicators - but play it safe Technical indicators jaise ki moving averages, volume aur relative strength index aapko aage stock price movement predict karne mein sahaytha de dete hai. Aap safe khel ke predict karo, lekin wait for the stock price to actually move as predicted before actually making a move. Technical indicators give you an idea of whether the price is going to move up or down jis ke basis aap decide kar sakte ho whether to buy, nahi toh (if you are already holding the stock) if you should sell. Use ratios to evaluate stocks Some of the famous traders and investors - ka kehna hai ki always trade stocks that have a good P/E ratio. Price to earnings ratio mein stock price aur company ke earnings ka comparison kiya jata hai. Agar company ka earnings stock price se zyaada hai, inka kehna hai ki the stock is trading at a "discount". Zyaada tar upward price correction hone ki possibility hai thodi der mein so it makes sense ki discount mein khareedh lo aur phir price correction ke baad aapko earnings ho sakti hai. Set a stop loss Always keep in mind ki stock price jitna be upward trend mein ja raha hai kabhi bhi palat ke, it can fall. Always set a stop loss taki your investment is protected. Ek aur baat: stop loss thoda soch samaj ke set karna because If you set tooooooo tight a stop loss toh your positions will get sold before the stock price has a chance to increase sufficiently. Avoid knee jerk reactions Dosto always understand this: stock market kaafi emotional rehta hai. For example: A budget announcement will suddenly send all stock prices for a toss even the prices of stocks jaha pe companies pe yeh announcement se koi bhi asar nahi padne wala hai. Aap yeh reactions pe impulsively react mat karo - aap sirf apne stocks aur un se related companies aur sectors pe dhyan do. Evaluate how a certain happening or announcement will affect your stocks nahi toh unke sectors. Aur ji ha zyaada volatility ke time pe thoda shaant raho. It is usually better to wait till things settle down. Understand risk appetite and risk mitigation Hamesha figure out karna ki amount of capital that you can afford to lose if things go south. Aap ussi amount se trade karna. Roti, kapda, makaan matlab aapke basic living expenses like rent, groceries, conveyance, utilities aur basic lifestyle expenses ke liye paise side mein rakh ke hi trading baaki paise se kar lo. Always ensure ki aapke paas steady source of income hai before risking capital you have in hand. Aur haan, risk mitigation...maane risk management or risk minimization… karna zaroori hai. Iske liye aapko hamesha stop loss set karna chahiye … and … well this brings us point number 8 to keep in mind, which is diversifying your portfolio. Kabhi mat bhoolna ki koi bhi stock market investment mein risk rahega hi rahega. Aapko yeh risk manage karna hai. Diversify your portfolio Portfolio diversification is the most popular risk mitigation technique chosen by most traders. Aap alag alag companies aur alag alag sectors mein invest kar lo taaki ek sector ya ek company ke losses se apna pura paise nah kho jayega. Aur ek ek company ya ek sector ka losses dusre company ke earnings se offset bhi ho sakta hai. Yeh hai smart aur safe trading. Don't forget about fees and charges Brokerage fees aur charges pe dyaan dena is also important. Preferably looking for some broker who offers a flat rate for all trades rather than a percentage can be a good option to go ahead. There's always more to learn Agar aap trade kar rahe ho, aur earnings aa rahi hai toh aapko confidence aana chahiye lekin there’s no place for overconfidence. Bahut kuch sikhna baaki hai always. Learn about technical indicators, learn about rule based trading, learn about different asset classes… apna knowledge badhaate raho. Dost yeh hai humare podcast ka The End. Sunte raho aur learn karte raho. I hope ki yeh checklist aap use mein zaroor loge. Jaane se pehle yaad rakhiyega ki this podcast has been made for educational purposes only and traders and investors must do their own research before making any decision. Investments in the securities markets are subject to market risks. Read all the related documents carefully before investing.