Tuesday, July 15, 2008

TIPS FOR DELIVERY BASED TRADING

Please study following points, carefully, and get best returns in short period of time.
Basically, Delivery based trading can be minimum one week, one month or couple of months. How long to hold your scrip’s/shares will depend on other technical indicators and averages.
How to select best scrip’s
There are thousands of shares/stocks, which one is best for
delivery trading and which one will give maximum profit
in short period of time. Please have a look following selection
criteria points.
Points to remember for fundamental screening,
1.Sector - 50% of stocks rise and fall is directly related to
the strengths and weakness of its industry group.
2.Never lose more than 1-2% of your total amount on any
one trade.
3.Promoters holding more than 40% indicate safety for
retail investors. (Promoters - who run the company).
4.FII holding minimum 20 and maximum 25 is safe for retailer, not much volatility.
More FII investment = more volatility.
5.Liquidity - buying and selling of shares minimum 1L/day

INVESTMENT TIPS FOR DELIVERY BASED TRADING

Remember following points to increase your profit and reduce losses,
¨ Buy shares of different companies
Don’t ever try to put all your money in single share. Try to get shares of multiple companies and if possible from
different sectors.
You will always get benefited by investing in companies of different sectors, because we never know which sector
will have good news and which sector will have bad news.
“Market always reacts for news.”
¨ Be Patient
When you buy shares, they may go down. In share market its general practice that shares go up and down.
If they go down than don’t panic and sell your shares
Most of the investors/traders wait till their shares come to their buying level and then sell, but generally they forget
that is the actual buying level of shares and from this level onwards the share price will start moving upwards

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