Stock Trading 101

Stock trading has always been a fascination for me and it still is.Today I read a book by Nicolas Darvas on the topic and the following are few of the tips extracted from it.

1.Do not follow Advisory Services.

Well this might seem counter productive but holds true for the author as these kinds of services are build upon the same rumours circulating wall street and not actual sources.The more alluring the headlines, the more the paper sells.

2.A pinch of salt with the broker’s advice.

The broker can win either way if you buy or sell due to commission charges.But hey, it is the investor’s responsibility to save his assets.

3.Ignore Wall street sayings and over the counter deals.

It is a common saying that as long as you keep making profits you can never go bankrupt.But one can find the truth only by actual trading experience and besides unregulated markets are out of the question.Unregulated markets tend to have varied ask and bid rates as well as lack of scrutiny making it a very unfair game.

4.Study and be patient.

This seems to be the most stressed advice.The author says that only when you study out of keen interest will you get the hang of it.Stock market is a long term investment both emotionally and for higher chances on returns.

Link for the Audio book -How I Mad 200,000 in the Stock Market –

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