Implementing sound money management is the key to success in stock markets. Whenever one hears of a trader making huge losses in the market, he was most likely not implementing sound money management.

Novice traders tend to focus on the trade outcome as only winning and therefore do not think about risk. Professional traders focus on the risk and take the trade based on a favourable outcome. The best method is to adjust your TRADE SIZE and set your stop loss based on market dynamics. To learn the share market & stock market coaching is provided in Delhi NCR.

List of ingredients in devising a sound money management plan

1. Always use STOP LOSS.

2. Determine your trade size based on your trading account equity.

3. Never exceed a stop loss 0f 2% to 3% on any given trade.

4. Do not put your whole capital in one stock. Make a portfolio of 6 – 7 good stocks.

5. Never trade with borrowed money.

6. Never overtrade. Sit idle and wait for the opportunity. Technical Analysis teaches traders to execute position based on numbers, time and volume.

For traders those who want to learn Technical Analysis of stock market / share market, coaching is provided in Delhi NCR.

The science of Trend allows you to build systematic rules to enter and exit to your positions. Some rules to follow in trading:

1. Forget the news and remember the chart. You are not smart enough to know how the news will effect the price of a share. The chart already knows the news is coming.

2. Buy at support, sell at resistance.

3. Don’t chase the momentum. Assume the market will reverse the minute you get in.

4. Trends test the point of last support/resistance. Enter here

5. Trade with the trend and not against it. Go with the trend.

6. Have a discipline. Most traders fail because of lack of discipline. Following your own trading plan is very important to success. Proven techniques and strategies should not be edited for any reason.

7. Don’t count your chickens. Profits are not booked until the trade is closed.

8. Don’t join a group. Trading is not a team sport. Avoid acting on messages, tv , etc.

9. Perfect your entry techniques first . A trader should strive to perfect his entry techniques first and worry about the exit later on.

10. Don’t get attached. You are in market to make money, not to get married to a stock. Take your profits and exit the stock.


Perhaps one of the biggest reasons traders fail in trading is because they have a lack of knowledge and moreover they overtrade. Overtrading is a factor that has been identified as a definite “No-No”

PRIME STOCKS provides the best share market / stock market coaching in Delhi NCR so that you can learn the stock markets easily and make a career in it. We implement sound money management techniques so as to improve your trading and help control risk. We have developed our own techniques that no books can tell. Our techniques are 95% Accurate. This means 1 out of every 10 trades we execute goes wrong. We guarantee you success in stock markets.

Author's Bio: 

Prime Stocks provides the best Stock market Learning course, so that you can learn the markets easily and make a career in share markets or become a a successful trader. for more information click here : Prime Stocks