Basic rules of stock trading

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Welcome To Dhanashri Academy
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Basic Rules of Stock Trading
If youre going to trade in stock, adhere to some
golden rules to help you maximize your success
(or at least minimize your potential losses)
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Dont commit all your cash at once
In a fast-moving market, opportunities come up
all the time. Try to keep some cash on hand to
take advantage of those opportunities.
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Have a plan
Try to have predetermined points at which you cut
losses or take profits.
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Understand that taking profits is not a sin
Sometimes, a bird in the hand is worth two in the
bush. Markets can reverse fairly quickly. If you
have a stock position sitting there with a fat
profit, it cant hurt to take the profit. This
action gives you cash for the next opportunity.
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Discover hedging techniques 
Just because youre bullish doesnt mean that you
cant also put on a bearish position. Hedging
techniques protect you when the market moves
against you.
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Find out which events move markets
Research the market and discover what types of
events tend to move it. Serious short-term
traders keep one eye on their positions and the
other on whats going on in the world.
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Check the stocks trading history
Charts and related data tell you how a particular
stock has moved in recent weeks, months, and
years. Do you see any seasonality or reliable
patterns that may help you judge future movements?
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Minimize transaction costs
Keep in mind that because trading is typically
active and short-term, transaction costs are
significant. Therefore, traders who trade
frequently should shop around for brokerage firms
that charge low commissions.
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Read and learn from top traders 
Last (but not least), learn from the great ones
out there, such as the legendary Jesse Livermore.
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Thanks!
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