How To Do Delivery Trading Smartly
Delivery Trading is also called Positional Trading.you have taken delivery of shares, so here it is called delivery trading.
This is one another type of trading but much much safer than intraday. In intraday may be you have loss because of wrong decision, position or their type and because of time limit but in delivery trading you can stop or limit your loss by holding that share because here is no time limit for selling.
Investments also have done in delivery type. At starting delivery trading is very good because it is safe and with that you can learn many thing about trading.
Here are some important things, tips and easy techniques which will help you to trade more effective and you can earn more profit regularly.
• Choose Good Companies
Choosing right company is beneficial by all sides because in this case you don't worry about share is going up or not and also you does not need to hold shares for more time as you can exit quickly with profit. So try to buy good companies. don't by any company unknowingly and just by suddenly increase in price.
• Buy High Volume Shares
Shares which has high volume is good for trading because there is always some mometum in price ups and downsvand because of that you can buy shares at current price also or at any price and can easily exit with profit. So try to buy high volume good company shares. In nifty 50 some companies have always large volume so look that also for safe trading.
• Proper Profit Margin
Profit margin means how much profit do
you want per share from bought company shares. (for
e.g 5/10rs or 20 rs 30rs per share )
For example :
If you have bought
100 share at 100 rs then at what price you want to
sell it .like 110 or 115 or 120 or 150 rs may
be any price but you have to decide it
before or when you buy. Don't set more profit margin
or expect more.
This is very much
important part of trading because no one
can predict 100% about market . so every time
you need to expect or set proper margin
otherwise you will locked in that share or
may be reduce your profit by expecting more.
So try to set right profit margin and should
be change as per situation. So your trading
will be effective and ensured.
• Don't Follow Others
This is very common and big mistake trader has been doing because they only listen to others and without any thinking on that and just by looking more profit in some days they are going to buy shares and get locked them self in it . So don't be fully dependant on others listen to them but with some of your study take decision and trade .
• Trade Smartly
Millions of traders are trading everyday but how
many of them are good , successful and independent .
so trade smartly not normally like you want
just money and nothing else this attitude
is not good because this is market unknowing
you will successful two - three times but what
further.....? So try to trade smartly and
this needs some study and work.
Try to buy more quantity of shares in
less price of good company.
Find
some good and strong companies in which
you can believe and trade.
Think
how you can earn more profit in less trading
amount by buying good caompanies at less price. So find companies as much as possible.
Smart Technique:
Always buy shares at your price not market
price because of this you can earn more profit
than others.
For e.g- market price is
100 and you want to trade then place order
at 95 - 97 rs because price always fluactuets by some rs so you can take advantage of that. here you get 3-4 rs extra profit than you have set.
• Observe Market Very Carefully
This is basic and important skill of
aking money because if you are observing
market daily carefully then you will get
important information like,
How market is
working.
what is their direction.
Where it is slow or fast.
Good hours for
trading and
for holding.
how market is in morning and afternoon and at end
(9-11,11-1, 1-3:30 )
So because of this your confidence
will boost. you will know how and where to
take position and exit. So you can trade
confidently and independently .
• Don't Buy Unpredictable stocks
Some time you will see or listen from someone some share is going up so buy that one or some share suddenly starts raising without any base and unexpectedly this happens many times. so don't trade in shares like that because such stock goes high like that they come down and indirectly you will make your loss. This happens because big traders has suddenly bought some stock or sell for getting more profit.this is their business strategy. In this case they get the profit but individual traders lost their money because they don't know this. so be alert and always trade in good companies carefully.
• Buy More Quantity
Even If your amount is limited then
also you can make good profit by trading
smartly. in this case try to buy more
quantity of shares for this you need find less price companies. belive me there are many companies available you just need to do little more study. this is smart way and because
of this you need to set less profit margin
and you can exit easily if share fluctuates
more or you can not indentify the direction
so because of more quantity you
get profit even if you exit queckly
Try to buy good
(100/200/300rs) rupees share or may be
you will get good stock below 100 rs also.
So study carefully companies.
if you have 1000 rs only then try to
buy 100 or 200 rs shares then you can buy 5 - 9
shares and with 10 rs profit margin your profit
will be 50 - 90 rs this is just example for understanding.
you will earn 100 rs profit (by deducting brokrage + charges)
over 1000 then again trade with 1000 rs keep that 100 rs
profit beside when you reach to 1500 rs then
invest whole amount 1500 rs. Dont immidiately
put your profit in next trade. all the best....!
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