Preparing For Investing in Stock Market

Preparation For Investing

1. Do Some Homework and enter the market with a clear day trading strategy and idea for stock pick.
2. Best thing is to do online stock trading and the presence of online brokers and brokerage firms further facilitates day trading.


3. Find a broker with minimum commission.

How Do You Beat The market Consistently ?

1. If you are new, always buy when market is up and sell when market is down.  You could do
   opposite but that is complicated.  This had been the trading in right direction.
2. You should consider it as a business and ready to accept loss.  This means you should decide your selling price beforehand.  If you achieve your desired profit, get out of the deal or if you make loss book the loss and prepare for the next step.  Put control on your fear and greed.


3. Follow the age-old practice not to put all eggs in the same basket.  Invest money in blue chip as well as mid cap with high momentum, this will reduce the heavy losses against high return.


4. Make an initial investment and always save some part of profit as investment.


5. Loss is part of any investment.  Have a modest initial target to beat the market by 10 per cent per annum.  Try to be an average investor first. 

Required Tools for the Day Trader

Whether you are a new or inexperienced day trader, you need the following tools.

1. A computer with Windows XP.


2. A broadband connectivity with unlimited traffic and connection time (Internet).


3. Online Brokers.


4. Access to authenticate market data.