How to determine entry and exit points in share trading?

Answer 1

Actually determining the correct entry and exit points is very difficult..
as an individual investor what i suggest is.....we have to watch a particular scrip that interests us a lot...we have to observe its price moments..and make a not of its highs n lows)like life time high , low) when we know that the fundamentals (basic financial aspects like good profits active management..good balance sheet etc) then u can go about picking up that stock as n when there is a correction in the market...never try to take that stock in bulk or at one...try to take a regular quantities like say 50..every time time the market falls....This way u can average the buying price ...and on an average the price at which u buy will be very less when compare to the market highs n lows..
And when it comes to selling..u really need to fix your target..like..if u feel very much bullish about the market..u fix a profit margin for every scrip that u own..like....20% or 30% etc...when once u reach that level...sell the stock again in intervals....
as n when there is 1-2% hike sell the stock..and when the market is down buy it...
this way one can maximize the profits....

Answer 2

First you have to determine what kind of trader you are. Whether you are a Day Trader, Short Term Trader, Mid Term Trader, Long Term Trader or very Long Term Trader like Warren Buffet.

If you are any of the Traders, you will have to rely heavily on price chart and Level 2 Quotes to determine your entry and exit. With the tools in your hand, you can determine the best price for entry and the best price for exit to maximize your profit.

If you are the Short Term Trader, you will need to understand the sectors which the stock is in. Whether it is Tech, Energy, Finance, Property, etc........ If the sector is on the uptrend, you will be riding on the waves.

If you are the Long Term Trader and very Long Term Trader, it is very important to include fundamental analysis in your research.

Answer 3

The theories of the stock market trading are a wonderful exercise in futility . A very successful trader( a factory foreman who amassed a sizeable fortune) advised me to;Analyze, Buy and Hold. If the homework( prepurchase research) is correct buy the shares you can afford and hold. Follow your investment closely to determine if changes in the company in which you hold shares will affect the holding.All the shares should issue dividends at reasonable rates. Part of the portfolio should go toward speculative shares, ( he caught Microsoft ) My son is a registered broker whose guidance has increased value considerably, with the lowest return in our worst year of 6.5%. Last year, capital gains, dividends, gains and losses on sales averaged 18.5 % of original cost. Appreciation is not a consideration since it isn't realized.

Answer 4

That's the biggest catch in stock market. If anyone can gurantee entry and exit points, then almost everyone would be a millionaire......

Then to make your moves right start reding The Economic Times, and start watching CNBC TV 18, CNBC Awaaz, NDTV Profit.

You can also read message boards on http://www.moneycontrol.com , http://www.rupya.com

Answer 5

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Answer 6

You need to determine support and resistance, look at your charts they tell a story. You need to read up on the news and check the fundamentals. Know your market and it will reward you. Happy trading.

Answer 7

entry point: whenever there is good news about the years profits/returns

exits: I've heard when the stock is -8% of what you invested in it (ex. invest $100 and it is now worth 92) and has potential to continue in its downfall.

Answer 8

If anybody know this, would have been the richest !

Enter or exit at a level where you are satisfied.

always invest for a long period i.e.,atleast one year.

Answer 9

Learn "Technical Analysis"

Answer 10

[put down stop/loss levels...in my case..i sell if stock goes down 10%......and sell if the stock goes up 20%..bank the profits, take a loss if need be....never be emotionally attached to a share or a company...this way if a down turn comes, you do not loose your shirt!