Secrets of stock market trade

Mutual funds are a great buy and here are a few suggestions that have to be kept in mind when you want to consider mutual funds to invest in.

Secrets are not to be shared but here are a few secrets that are tried and tested actual findings which will benefit the first time trader or the more experienced trader. Do take a glance at these trade secrets as you may benefit as well.
 
Do not hump head on with adequate cash or finance into the stock market. The stock market can be considered as an ocean and you are sure to drown in this ocean if you are not experienced or lack the basic skills. Always buy without leverage and never borrow funds to invest in the stock market. Use money that you can afford to lose, as leverage will increase your losses and you will face bankruptcy. Select stocks that are stable in during volatile markets.
 
Always minimize short and long term volatility in your stock portfolio. Volatility is dangerous and can cause huge losses in a short span of time. Stocks whose prices are not volatile are a safe bet.
 
Don’t settle for a “cheap” stock. Quality stock at a cheap rate is always welcome. Here the word “quality” should be given more preference. Take a look at the net assets value of a stock and select those stocks whose net assets value can go up at least 8-10% each year when compounded. The company whose stock you want to buy should be financially stable, gave a good management and be competent in the market. Try and lay your hands on penny stocks, which are cheap, hold on while these companies take off and then make profits when your expectations are met.
 
Be patient as well as persistent even when the market is down and you have make losses. Failure should be overcome and convert your losses into gains. People face huge losses because their emotions take over their actions and they act in haste. Think wisely and with an open mind. Take part in discussion and be update with the latest news in the stock market so that you know where the market will head tomorrow. Do not miss the closing bell at the end of the day’s trade.
 
Minimize your expenses as much as possible because you do have to pay commissions, so trade carefully. You can even lower your tax with good trade options. Your portfolio is your key to successful trading and do seek expert opinions in times of need.

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