Golden Rules of Share Trading .

1. First Learn
We should never take in the stock market without knowing anything at all. First, understand the stock market better than come in. Give yourself time to learn, read business-related news, understand business plans of companies, learn to read a balance sheet, know P / E, EPS, ROE and then invest in any Share Bazaar.

2. Long Term Investment Best
You should invest in the stock market for a long time. It is positive to be profitable. More money can be earned in less time than intra-day trading, but there is a risk in it. It can also cause your loss. Therefore, do not only a great investment.

3. Purchase the same which you know and understand
In the stock market, you can buy shares of any company, but you should initially buy the share of the company that you know, i.e. the products used in daily life.

For example, the business making Maggi, oil, biscuit, etc. will get more understanding while it takes some time to understand a company with Hardware Manufacturing, Software, Web Developing. Invest in a company whose business you understand is well understood.

4. Set fixed price
Always set a fixed price for your stock to sell shares. As you bought a stock for 1000 thousand rupees and set a target for selling it, when the price of this share will be 1300, then we will sell it. If you buy the stock price as soon as you reach the target price, you can sell it.

5. Do not Buy Many Stocks Together
Do not buy a lot of shares of one kind of company at once. You should buy shares of many different sector companies by doing a little bit. You can increase your share limit on a weekly or monthly basis.

6. Choose a good company
You should buy Equity (shares) of a financially strong company and also see how its management is. Because the company which is financially paralyzed or who is worried about its management increases the chances of the share value of its shares decrease.

7. Create a Risk Profile for Portfolio
Financing in the stock exchange is a risk, so you must have your risk profile. Make sure in this one way you can take the risk.

Most brokers give you the option of a stop-loss order. It benefits from this, that, as soon as the stock price starts falling, your share is automatically sold on a fixed price by your broker. This prevents you from avoiding losses.

8. Research and Planning
Research and deep planning before investing in any company's stock or before investing in the stock market. Keep an eye on the market, look at the records of the company you want to buy, look at its management, look at any political and social changes that happen in the future. Keep looking at the recession or the speed of the market.

9. Invest in Different Sectors
Do not put all your money in the same company. Little by little, you should put your money into several types of companies.

If you invest your earning money in a single company, you may sometimes get more loss or more profit. It depends on the company's profit and loss.

10. Put additional money into an investment
While investing, keep in mind that in addition to your savings, you should put the money in the Stock Market.

11. P / E Ratio (Price / Earnings Ratio) - What is the P / E ratio
P / E ratio i.e. how much your earnings will be. The most attention needs to be paid on this. To know the P / E ratio you must first remove EPS (Earning per Share). This removes the net profit by dividing it by the number of shares.

Assume a company whose name is AB is 1000 shares and its net profit is 1 lakh, so in this way earning on one share would mean that EPS would be 100 rupees.

To remove P / E, divide the Market Price by EPS. For example, if the market price of a company AB is 500 rupees and EPS is 100 rupees then its P / E5 will be Rs.

12. Do not let your Sensation dominate
After the fear of loss in the stock market and the increase in the stock price, it can risk you to risk lagging after the target price. So, take your time off from work, keep away from greed and fear.

13. Do not let time get out of hand
This is a kind of advice that if you ask for advice related to the stock market from any financial planners, then you will first give it. You should not have time waste at the time of purchase of a share.

If your share has entered the target price, then quickly give it a bench. Do not wait for stock prices to grow. And if your stock price is decreasing, then do not wait that after some time, its prices will increase again. Doing this reduces the loss. get more information visit our website for Stock Tips.