Control your Greed and Cut your Losses

Market is supreme. As the nature moves by its own course, Market will move its own course. You can’t control or change the direction of the market. But you can control your losses by controlling your greed. Don’t be greedy. Expect reasonable and realistic profits in stock market.This is hard fact and reality.

Never trade in leveraged positions. In other words don't use any limit from the broker. Trade with your own money only.

Some brokers allow you to carry intraday / delivery positions for a day or two. Normally they won’t give you more time / days to hold your delivery positions. In this case, after the free time limit given by the broker is over, he will sell or square off your position / stocks without bothering whether you are in huge loss in that particular trade. Normally this happens only when our portfolio is in loss. This will give a big dent to your capital. The best thing is to trade with your own capital whether intraday / shortterm / futures.

Don’t run and just buy any stock at any level / higher level. Study the Market trend and behaviour before trading / investing. It is better to be stock specific. Study the individual stocks ie their trend and future prospects. Market / the stocks will not go any where. Normally the market / stocks are volatile and it gives many opportunities. Wait for the right price and right time to buy and then buy. Don’t enter at higher level. Time to time, book profits at reasonable level.

Don’t over trade. Do your own research. Trade less but wise. Don't get tempted by TV / Media / Broker's Tips. Normally Tips lead to Dips as the anger leads to danger.