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 Profit Of Securities Trading

There is hardly any doubt that each one of us gets into the stock market and enters into securities trading with the main objective of making some healthy and attractive profits. It is obvious that stocks and shares could provide the best return on investment whether it is short term or long term. However, if you are keen on making the best of profits there are some important points to be kept in mind. It is a fact that the 80-20 rules applies very much to stock markets too and only 20% make big money, while 80% are either able to recover their investments or lose in the bargain. If you are keen on making the best of profits from the stock market by trading on securities here are a few important points which you must always bear in mind. 

Stay Away From The Herd Mentality

One of the best ways to make big money in stock market is to stay away from the 80% and to restrain from following their actions. This is because the 80% out there get into the stock market without knowing anything about the market. They usually go by gut feelings, sentiments or based on very poor and unreliable feedback. You must not be taken in by the sweet talks being given by the brokers and others because in most cases their advices are wrong. You must do your own research and then decide as to which the best way forward is.

It Would Be Wrong To Time The Market

There are many books and articles which talk about entering the market at the right time and exiting at the right time. However at the end of the day it has been proven time and again that in spite of best techniques it would be impossible to time the market. Hence it is better to stay away from the same at all points of time. 

Be Disciplined In Your Business Approach

The next important thing is to be disciplined in your approach when it comes to investing in stocks and shares. It always is better to be cautious and careful when investing in shares especially when you are getting into it for the first time. Being cautious and disciplined will allow you to make profits slowly but steadily. 

Finally all buying and selling decisions must be logical, well thought out and free from emotional and other unwanted interference. This will certainly help in avoid taking decisions which are taken in a huff and out of gut feeling.