Here we will discuss some important rules for earning reasonable profits from this market.
Follow the rules:
If investors have formulated different rules then they must obey these rules in any situation.
Follow the single pattern:
As already mentioned, the prices in this market do not remain stable. The investors must formulate a strategy that they must buy the stocks when the prices fall. If they get start to buy the stocks when prices are showing rising trend, they will definitely face loss. So they are advised to follow the one strategy at one time.
Follow the financial indicators of the company:
The investors are advised that they must be very prudent while making investment in any company. They must analyze the profitability of the company in which they are going to make investment. They must also consider the earning per share, diluted earning per share and retained earnings of the company. By following these rules they can make handsome profits. The financial indicators play a vital role in decision making capability of the investors. The prices of stocks mainly depend upon these factors.