New Trading Strategy in Stock Market

Stock Market Trading seems beneficial to many traders. The trader can trade in Cash, Futures and options. In case of cash trading, the stocks are bought at the current market rates. In case of future the stocks are bought at a future market rate. Trading in the futures is in the form of Future Contracts. The trader can trade in intraday fashion or short term trading style. In whatever way the trader trades, there is always a chance of incurring loss in Stock Market trading. Thus the traders must follow some cautions before trading in the Stock Market.

1) The trader should acquire sufficient knowledge about the stock markets and then only should jump in the markets for trading. The trader should know all the ins and outs of the trade and then should start investing with real money.

2) The trader should first practice or paper-trade the strategy before actually following it. The paper trade will help the trader to judge the efficiency of the trade and also to practice the following of rules of the strategy. Thus paper-trade is one of the essential concepts in trading.

3) The trader should always try to use stop loss for all the trades. The stop loss prevents the trader from incurring heavy losses. When the stop loss gets triggered, the trader exits the trade with limited losses. Thus the trader is always advised to trade with stop loss.

4) The trader should always keep his emotions in control while trading in the stock market. The traders should keep his emotions like greed in control and should not over trade. An alternative is that the trader follows algorithmic and automated trading rather than manual trading. 

If the trader is new, he can take the advice of advisory firm for accurate stock market tips. These advisory firms act as a knowledge base for the stock and commodity markets.