There are certain golden rules that you have to abide by to be successful in investing in India stock market. The experienced traders always talk about the profits made by them and not the losses sustained by them. However, you should know that it is not possible to only have gains and not to have losses in the stock market. If you want to have steady profit from your investments, then make no such move that can eat into your capital. Even if you miss an opportunity, you should know that you have not lost anything, which is a good sign in the stock market.

Money invested in the stock market is your hard-earned money. Protect it with all your power of will and wit, as it is a game of might is right. After that point fully understood, you should now try to follow a few golden rules of Capital Management in stock market.

The first golden rule you should try to follow is that the capital that you invest in the stock market should be from your disposable income. You should never take a loan or borrow money to invest in stock. The second golden rule is that you never consign 10% of your capital. So even if the share incurs loss you don’t have mush loss. If you invest around 75% of your capital in one stock only, then the loss will be huge.

The third rule is that you should try to take out the profit you earn from stock market and keep it in separate bank. You should keep this profit until it reaches the amount equal to your initial capital invested in stock market. This way you keep your capital secure and invest further in other shares. When the rules are followed properly then it will help you gain you in the long run