In continuation to our earlier posting, we like to describe more about the Stock Market Trading Strategy.

We must know and understand, most importantly fix up our capacity to bear the loss if anything occurs during the trading because of wrong entry. Also, there will be unforeseen scenes happened for eg. its like day will come first following to that night will be coming similarly we can see huge profit and sometime we may happened to see huge loss even like TSUNAMI occasionally.

During that point of time, we must have enough money in our account to buy a new scrip or to average in the same stock if you really feel worthy. Otherwise we will be landing in the deep distress and also you will have to be waiting for even years of years. So, people those who are really having the surplus money should come to market for Trading/Investing especially you should not plan any of the commitments with the money which was invested in the market.

Most of the times, we are not coming forward to sell the shares when it is in the profit of more than 20%. It is also not a good strategy. They must atleast book a partial profit because sometime it may comedown like anything as everything is possible to happen in the market especially it will not give you any clue or whatsoever about its big decline.

In the next segment, let us discuss about the Index and its calculation and how it is useful to us.