Some Tips..

Market ends at positive of last 20 month. So many of my frineds wanted to know about stock market so this might be useful for them.

Stock Market:

First you have to understand what is stock market. If you are not knowing any thing, then before investing, observe market for few days. Monitor every up down movements. Make a list of some stocks and observe chart regularly. After that you will be able to understand when to invest.

Entry and Exit:

This is most important. Believe me, I lost my profit so many times because of my mistake in past. Entry and Exit timings are most important in stock market. Always enter the market or in any stock at lower level. And exit at higher level. Now if you buy something and market crashes, thn just hold for some time. Never exit at lower level. Because if you will exit, market will go up and you will buy same stock again at higher levels.

Support and Resistance:

Always look for Support and Resistance levels. Support levels are lower levels which holds stock price at lower level. And resistance is higher levels which dont allow prices to go high.

How to know Support and Resistance??

Observe stock for some days. These levels can easily identified. Lets take an example of Tata Steel. From So many days, if you observe daily chart, it goes up to 585 and can not go higher than that. After some days it goes up yo 550 but stop going down from this level. This process repeated so many times. It goes at 585 for 3-4 times and 550 at 2-3 times. So in this case 550 is Support and 585 is Resistance.

When to Enter and Exit??

Enter at Support level and Exit at resistance. If Support is broken then it may go further down. So exit immidiate in such case if you can not hold for long time. And exit at Resistance level. If you have hope about breaking resistance then also must book partial profit. If it will break this level, then it will go higher.

Like in above example, Tata steel had broken that resistance so now its price is 615. Now new support level is 600 and new Resistance is 625 so book profit at 625 and again enter at 600 level. That should be strategy.