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Question: ###Which is the best virtual stock trading market learning game and app in
India? Question URL: ###quora. com/Which-is-the-best-virtual-stock-trading-market-
learning-game-and-app-in-India

Top 4 Tips for Successful Stock Trading

#1. Never place market orders (those with no specified buy or sell price) before the opening
of the trading day.

Strange things can happen at the opening bell, so you may find yourself paying much more
than you intended on the buy side, or you may receive far less than you expected on the sell
side. This is always a risk with a market order, but it’s most acute at the opening, when
orders tend to pile up from traders reacting to last night’s (or this morning’s) news. If you
must trade at the opening, protect yourself with a limit order.

#2. The best time to trade “at the market” is usually in the afternoon, from about 1 to 2:30
p.m. EST.

By then, the whole country is at work, including the West Coast, and everyone has had a
chance to digest the day’s important news. Market-shaking government statistics are almost
always released in the morning. So are most corporate earnings reports.

#3. Always check the “bid size” and the “ask size” for any exchange-listed stock before
entering a buy or sell order.

A good real-time quote system will tell you not only the last price of a stock, but also the bid
price, the ask price and the number of shares being bid for or offered at those prices. When
the bid size is larger than the ask, it’s a sign of underlying demand for the stock , so don’t
hold out much longer if you were planning to buy. By the same token, a large position on the
ask side implies there are lots of sellers eager to get out. Don’t shilly-shally if you were
intending to sell.

What if the bid and ask sizes are almost equal? That’s a perfect situation for entering a limit
order exactly halfway between the bid price and the ask price. Chances are, your order will
be executed right there in the middle.

#4. The best time of the month to buy stocks is around the 18th through the 22nd.

That’s when cash flows into the market (from pension funds and dividend reinvestment)
tend to be at their low ebb, along with prices. The best time of the month to sell is during the
first two and last two days. Also, you should be an aggressive buyer during the months of
September and October, when the market has a strong seasonal tendency to bottom. Plan to
do most of your selling in April and early in May.

You will always feel that way in all stocks that you buy because all stocks keep fluctuating on
an hourly basis.

The evaluation of whether your stock pick was good or bad is not decided by its price
movement in the last 5 minutes. Sometimes…sorry..

1) ALL THE TIMES, you will find that a multibagger stock stayed flat for 7 years
before it gave its 50X returns.

2) If you were holding these stocks for those 7 years, you’d have felt like an idiot
because your friends who bought an Index ETF, they’d have outperformed you for
those 7 years.
 3) You’d have felt bad and sold off your stocks, only to realize that they went
50X, 100X, 200X after that.

Pick any stock, you’ll find this to be true.

If you want to buy a good stock (“good” as in a stock which falls in the category of >> ‘the
company is a market leader in its segment but its stock is overpriced’), then you should stick
to your resolve to buy it. Don’t fall in the trap of buying a cheaper stock in the same segment
just to feel that you saved money. If you want to buy Eicher, then buy Eicher. No need to buy
Atul Auto.

“But..but my chosen stock is too costly..now what?”

It is hard to time the stock movement “EXACTLY” but you can time it broadly. If a stock at
500 goes to 450, it’s relatively good. Does it mean it will not go to 300 tomorrow? no, but if
you keep waiting for it to go 300, it can also go to 600 tomorrow and you’ll miss the bus. So
what should you do? Ignore the short term price movements. Have a longer time vision and
don’t beat yourself if your stock goes down 10–15% even after you bought it after a
correction. No one can predict if the correction is over. You may have bought it while some
negative sentiment was still overpowering the market. It’s not your fault. A 10–15% fall is
alright (note : 50% fall is not alright; It means you made a serious mistake somewhere. If it
falls more than 20% after you buy, it’s better to exit, rather than seeing your money fall
another 50%.)

Sounds scary right? none of us want to lose a single 1%, how can we digest a 15% fall? But
that’s the nature of equities. The same reason why it falls by 15% today (negative market
sentiment) is the reason you will get 200% returns from it in the next 5 years >> market
sentiments fluctuate both ways.

Is there a method to this madness?

There’s no compulsion to put 100% of your investment into your chosen stock on a single
day. Put 10% of your capital and wait for a correction, then buy 20%, then if it falls more,
buy more. This is the ONLY way to buy stocks. There will NEVER be a magical day where
you will find a stock at its lowest and then you will put 100% of your money in it and it will
start going UP UP UP from the next day on wards and never come down. Stocks always
move in an UP - DOWN fashion, that is why you must use some basic moving averages or
Fibonacci retracement to average out your buying price and stay invested for the long term.

Here's the biggest mistakes I made.

1. Buying near 52 week low. I thought that 52wk low was the lowest point and the
stock would rise back up. But most of the times it didn't happen.
2. Buying “cheap” stocks. I always thought that I should buy stocks below 100rs. If
I have 10k to invest I can only but 10 thousand rupees stocks but 100 stocks worth
100 rupees. But mostly the 100 stock went down and 1000 rp stock went up.
 3. Penny stocks. If a stock is worth 5 rupees and you buy 10000 shares and it goes
to 6 rupees, you just made 5k rupees profit. But going from 5 to 6 rupees is a 20%
movement. It doesn't happen. Avoid penny stocks at the beginning.
4. IPOs. This isn't the first opportunity to invest. Various venture capital and angel
investor rounds are the first opportunities to invest. IPOs can be extremely risky as
there is no background.
5. Holding on to losses. Biggest mistake I made was not selling stocks if they fell. I
waited for them to get back up. It rarely happened. If you wanna sell something,
sell loss making stocks from your portfolio not quality, profit making ones.
6. Following news. I paid too much attention to what experts are buying. I took
advice from relatives and bought stocks without analysing. I lost money.
7. Selling for a quick buck. Whenever the stock made me a small profit, I sold it. I
cashed out to early and bore the loss too late. If you make some profit on a quality
stock, don't sell it unless it's overvalued.
These were some of the most common mistakes I made as a beginner. I had read about
almost all of ’em yet I made them anyway.

You'll too probably make them even if you learn about them. The best way to learn is to
learn from others mistakes but sometimes making your own mistakes gives you a bigger
lesson.

I sometimes still make these mistakes but each time I learn something new. Keep making
mistakes, keep learning but most importantly, keep making money!

Watchlist:

October 2017 – only buy

1. Coal India

2. Lupin

3. Nestle India

4. Shree cement

5. Tata chemical

Market is going up; you want to buy: For swing trading

Best time to buy: 10.10AM to 10.30AM

Second chance: 12.10 PM to 12.25 PM

Third chance: 1.15PM to 1.45 PM

Best time to buy: 3.10PM to 3.15PM

Second chance: 1.15 PM to 1.30 PM