Profits In Stock market

The time to hold on is when the tide is running in your favor. Never close a trade just because you have a profit. When tempted to close a trade just because you have a profit ask yourself the questions:

Do I need the money?

Is the move over?

Do I have to sell?

Why should I take profits?

Look at your charts, do what they tell you. If they do not show a change in trend, wait. Protect profits with stop loss order, but do not take a profit too soon. This is just as bad as taking a loss too late. Patience hold on when you are right and nerve to get out quickly when you are wrong will make a success.

Accumulate A Surplus

A surplus must be accumulated before you increase your trading quantities. Margins are not to hold on with, only lambs do that. If big risks are required, do not make the trade. Wait for an opportunity when you can buy or sell and place a stop loss order 3 to 5 points away. It is financial suicide to take big losses when they can be prevented.

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