History of Indian Stock Market -

1000, July 25, 1990 [took 10 11 years to reach]
2000, January 15, 1992 [bullish period]
3000, February 29, 1992 [ bullish period]
4000, March 30, 1992 [bullish period]
6-05-1992 ----- scam of harshad mehta exposed
5000, October 8, 1999 [recovering]
6000, February 11, 2000
june 2002 ------ scam of ketan parekh exposed
5000, November 3, 2003 [return to this level]
6000, January 2, 2004 [return to this level]
7000, June 20, 2005 [bullishness started]
8000, September 8, 2005
9000, November 28, 2005
10,000, February 6, 2006
11,000, March 21, 2006
12,000, April 20, 2006
13,000, October 30, 2006
14,000, December 5, 2006
15,000, July 6, 2007
16,000, September 19, 2007
17,000, September 26, 2007
18,000, October 09, 2007
19,000, October 15, 2007
20,000, October 29, 2007
21,000, january 01, 2008

golden rules of trading

Golden rules of trading...
Divide your Risk Capital in 10 Equal Parts. -----As part of the Successful money management, it is always advised to divide your Risk Capital (which you can afford to lose) into 10 equal Parts and at any given time none of your Single Trade should have more than 3 parts of your capital in it even if you are in a winning position. At the same time always keep some spare money for any Buying Opportunity, which may come any time.

Trade ONLY in active & high Volume Stocks. ------Many Traders get stuck with stocks for want of liquidity. Always rely upon Stocks which have reasonably high volume over a period of time. High Volume are always advised for easy Entry, Exit and Stop Loss. In low volume stocks the spread is too high and chance of Stop Loss limit getting failed is too high as there would be no Buyer or seller at your Stop Loss Level.

Come Prepared with a Trading Plan.------Successful traders always keep their Trading Plans ready before entering into any transactions. One must prepare a Watch List or Probable candidates for Day's trading and remain focused on the movement of those stocks only. For example a Stock 'X' is on verge of a Bullish Breakout from any pattern or stock 'Y' has declined substantially after an initial sharp upmove or stock 'Z' is close to an important support level. Successful trader would concentrate on the movement of those stocks only and enter the trade as soon as stock 'X' gives the anticipated breakout or stock 'Y' starts an upmove or stock 'Z' breaks the support level to initiate a trade for quick gains.

Never Over Trade.-----This is the most common mistake committed by Traders, particularly after a Streak of winning Trades. This mistake Generally not only wipes off all the profits, but puts traders in heavy losses. In order to remain in market while making consistent Profits, under no circumstances, traders should go beyond their Risk Capital.

Trade in 2 to 4 Stocks at a time with strict Stop Loss. ---In a Bull move, most of the stocks move up and similarly in any Bear Move, most of the stock moves southwards. As a Trader you know this fact but can you Buy 20 Stocks and try to make profit in all the 20 stocks just because all are moving up or vice versa in a Down trend? What will happen if market reverses without any indication on any bad news? Would you be able to monitor all your trades in such situation? Smart and Successful trader would trade in 2 to 4 stocks with strict Stop Loss and keep a strict vigil to avoid any misfortune in case of any eventuality.

Don't Trade if you are not Clear. -----Many Traders, because of their daily habits trade even when there are no signals to buy or short. Normally such situation arrives after a sharp rise or decline when stocks are adjusting their values. While some stocks attempt to move up, few may be taking breather before next move. Such situation are often confusing. There is no harm in taking rest for a day or two or short period if the trend is choppy, unclear or doubtful, instead of putting your money at higher risk.

Don't expect Profit on Every Trade. -----If you consider you are a smart trader who can make profit on every trade, you are 100% wrong. Always be flexible and accept the fact as soon as you realize that you are on wrong side of the trade. Simply get out of the trade without changing your strategy during the market; it may cause you double losses.

Withdraw portion of your profits.-----The business of Trading is excellent as long as you are making profits. Unlike other business your losses can be unlimited and rapid if market does not move as per your expectations. While in other businesses you may have other remedial measures available but in trading it is you only who has to control it. Traders have large egos particularly after series of successful trades and their tendency to enlarge commitments in overconfidence may cause major financial set back. There fore it is must that trader must take a portion of the profit and put it in separate account. This is absolutely must for long term stability in the market.