" Basic Rules of Indian Stock market "

How To Earn in Bullish Indian Stock Market
 

• Always remember this is your hard earned money not anyone’s. So you have to take care of it and be cautious at every level, if you are taking calls from processionals then also.
   
• Always follow Indian stock market.
   
• When market falls, don't panic, when market zooming don't be overjoyed as you can earn and loose both ways around.
   
• If market goes up you first buy and then sell and if Indian stock market goes down, you first short and then buy.

Never hesitate to ask for professionals advice.

 

Do and Donts For Stock Market Investments

 

This is the question probably every equity investor would have asked himself a number of times
 

What you Must NOT Do in Stock Market

Don't panic

The market is volatile. Accept that. It will keep fluctuating. Don't panic.

 

If the prices of your shares have plummeted, there is no reason to want to get rid of them in a hurry. Stay invested if nothing fundamental about your company has changed.

 

Ditto with your mutual fund. Does the Net Asset Value deep dipping and then rising slightly? Hold on. Don't sell unnecessarily.

 

Don't make huge investments

 

When the market dips, go ahead and buy some stocks. But don't invest huge amounts. Pick up the shares in stages.

 

Keep some money aside and zero in on a few companies you believe in.

 

When the market dips --buy them. When the market dips again, , you can pick up some more. Keep buying the shares periodically.

 

Everyone knows that they should buy when the market has reached its lowest and sell the shares when the market peaks. But the fact remains, no one can time the market.

 

It is impossible for an individual to state when the share price has reached rock bottom. Instead, buy shares over a period of time; this way, you will average your costs.

 

Pick a few stocks and invest in them gradually.

 

Ditto with a mutual fund. Invest small amounts gradually via a Systematic Investment Plan. Here, you invest a fixed amount every month into your fund and you get units allocated to you.

 

Don't chase performance

A stock does not become a good buy simply because its price has been rising phenomenally. Once investors start selling, the price will drop drastically.

 

Ditto with a mutual fund. Every fund will show a great return in the current bull run. That does not make it a good fund. Track the performance of the fund over a bull and bear market; only then make your choice.

 

Don't ignore expenses

 

When you buy and sell shares, you will have to pay a brokerage fee and a Securities Transaction Tax. This could nip into your profits specially if you are selling for small gains (where the price of stock has risen by a few rupees).

 

With mutual funds, if you have already paid an entry load, then you most probably won't have to pay an exit load. Entry loads and exit loads are fees levied on the Net Asset Value (price of a unit of a fund). Entry load is levied when you buy units and an exit load when you sell them.

 

If you sell your shares of equity funds within a year of buying, you end up paying a short-term capital gains tax of 10% on your profit. If you sell after a year, you pay no tax (long-term capital gains tax is nil).

 

What You Must Do in Indian Stock Market

 

Get rid of the junk

 

Any shares you bought but no longer want to keep? If they are showing a profit, you could consider selling them. Even if they are not going to give you a substantial profit, it is time to dump them and utilise the money elsewhere if you no longer believe in them.

 

Similarly with a dud fund; sell the units and deploy the money in a more fruitful investment.

 

Diversify

 

Don't just buy stocks in one sector. Make sure you are invested in stocks of various sectors.

 

Also, when you look at your total equity investments, don't just look at stocks. Look at equity funds as well.

 

To balance your equity investments, put a portion of your investments in fixed income instruments like the Public Provident Fund, post office deposits, bonds and National Savings Certificates.

 

If you have none of these or very little investment in these, consider a balanced fund or a debt fund.
 

Believe in your investment

 

Don't invest in shares based on a tip, no matter who gives it to you.

 

Tread cautiously. Invest in stocks you truly believe in. Look at the fundamentals. Analyse the company and ask yourself if you want to be part of it.

 

Are you happy with the way a particular fund manager manages his fund and the objective of the fund? If yes, consider investing in it.

 

Stick to your strategy

 

If you decided you only want 60% of all your investments in equity, don't over-exceed that limit because the stock market has been delivering great returns.

 

Stick to your allocation.

 

General Market Advice:

1. Never chase a stock.

2. Buy when markets are in the grip of panic.

3. Only buy fundamentally strong stocks, which are undervalued.

4. Buy stocks grown in top line and bottom line over the past years.

5. Invest in companies with proven management.

6. Avoid loss-making companies.

7. PE Ratio and Growth in earnings per share are the key.

8. Look for the dividend paying record.

9. Invest in stocks for sure returns.

10. Stocks have been the high yielding asset class over the past.

11. Stocks are an asset class.

12. The basic property of any asset class is to grow.

13. Buy when everyone is selling and sell when everyone buys.

14. Invest a fixed amount each month

Last But not least Trust our tips and then invest to earn huge profit

Best sites for share market:

https://www.intradaytips.com/

https://www.sharetipsinfo.com/

https://www.theequitydesk.com/

https://www.sharebazaartips.com/

https://www.daytradingshares.com/

https://www.sharegyan.com/

nice...

a kind of

Thanks for sharing

thank u sumit sir for giving very interesting insights. since i observe markets daily, every note is true. especially the one relating to extra costs like brokerage, stt etc.

thanks again

Thanks for sharing........

 Thanks

Thanks

Nice

These are really good stock market rules shared. One should be very careful while investing in share market as it is very volatile in nature. These rules should be followed so as to avoid losses in investments. One can even take help from expert stock brokers in this field so as to have profitable investments.

Thanks a lot for sharing such a nice information about indian stock market.Actually there are a lot of different sites where you can get all the information about the stock market and recent updates also.