IN THE BUDGET MONTH FEBRUARY
Markets are volatile ahead of any major event, so is its nature. When people become complacent about the market it shows its true colors to shake the weak hearted out of the market.

Remembered a month back almost everybody is certain that this market has only one way to go that is up. See what happened in a matter of days. Now everybody has strong belief that this market will go down. Is it so?

The most illogical logic was given by almost all blue channels that Indian market is correcting because of FII's are pulling money to invest in US market.Now on Friday US markets are down.Rest is upon you to decide.

We are advocating all along that never ever try to predict the market. Concentrate all your money, mind and energy towards stock picking.Popularly we call it trend is the best friend. Always go along with it. Imposing on the best friend is the biggest mistake we do most of the times.

Well disciplined investment approach works wonders in all market conditions. Follow certain simple and basic rules while trading.

Use trailing stop loss. If you bought a share at 100 with stop 95, when it moves to 103 or more increase the stop to 100 in order to protect your capitalNever trade on even number or round figure. If you want to buy 100 shares at 200 with stop 190.*Place the order for 99 or 101 shares*place the order at 200.55 paisa*place the stop at 189.45 paisa.Sometimes numerology work wonders in the stock market.

Keep the price target or stop changing as per the market conditions if requiredOnline people instead of putting stop use stock alerts or simply put stop on say 1 share to know the stop trigger.

Most important of all In spite of all these precautions if the trade goes wrong just close the call and forget. Never ever try to repair a wrong trade. It is not a shoe. It is a share. Well you may curse me that how can I forget my hard earned money?

This is the most common mistake nearly 90% of small investor do. Take a simple example a small investor buys 2 stocks say A and B at 100. At the end of day A is at 103 and B is at 97. What you will do in this case. You will sell A and keep B, sometimes buy more of B. most of the investors do this. They buy penny, Z category or so called momentum or operators shares and when the prices come down sells fundamentally good shares to make up the losses or margin. The first lesson cut your losses to minimum and let your profit grow to maximum

Well my dear investors do not waste your resources on the door which has already been closed rather look for the doors that is about to open. This is perhaps the best time to pick your favorite stock at the most economical price because in a down market both horses and donkey are treated alike and beaten with the same stick.

My dear investors it is the time to find out the horses to ride to profit.

HAPPY WEEKEND.