Share Market Rules

  

Please find below a summary of key stock market principles and insights :

Core Trading Rules

- 90-90-90 Rule: 90% of novice traders lose 90% of their capital within 90 days.

- 3-5-7 Rule: A risk management strategy limiting risk per trade to 3%, total account risk to 5%, and setting a profit target of 7%.

- 10 AM Rule: It is advised to avoid trading before 10:00 AM to bypass the high volatility seen during market opening.

Market Outlook and Projections (2026)

• - Growth Sectors: The solar, pharmaceutical, finance, and manufacturing sectors in India are projected to grow by up to 73%.
• - Top Performers: Prominent stocks with strong historical performance include Bajaj Finance, HDFC Bank, and ITC. String Metaverse has also shown a 175.8% return.
• - Low-Cost Stocks: High-risk options priced under ₹10 include Vodafone Idea, GTL Infrastructure, Unitech Limited, and RattanIndia Power.

Trading Fundamentals

- Getting Started: Success begins with understanding terms like stocks, bonds, indices, and diversification.

- Predicting Performance: Trading volume is a primary indicator; a sudden surge often signals growing interest and potential price increases.

- Daily Earnings: While strategies like intraday or derivatives trading can potentially yield ₹5,000 per day, they require significant preparation and risk management. Other high-income avenues include freelancing, content creation, and digital marketing.

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Share Market

Please find the requested information regarding stock market operations and trading principles below:

Market Analysis and Price Movement

To predict whether a stock's price will rise or fall, investors typically utilize Technical Analysis (charts, moving averages, and 200-day averages) alongside Fundamental Analysis (profits, P/E ratios, and management quality). Generally, growing profits and high demand drive prices up, while weak financial results or heavy selling pressure cause prices to decline.

Night Trading and Market Hours (IST)

During the night in India, the US stock markets (NASDAQ/NYSE) are active from approximately 7:00 PM or 8:00 PM until 1:30 AM or 2:30 AM IST. Domestically, the Commodity Market (MCX) remains open until 11:30 PM or 11:55 PM. Additionally, the After-Market Order (AMO) facility allows for order placement throughout the night.

Expected Returns on Investment

With a capital of ₹100,000, an experienced trader may earn between ₹5,000 and ₹20,000 per month (5% to 20%+). However, due to high risk, beginners are advised to target a more conservative monthly return of 2% to 5%.

Risk Management and Trading Rules

The "7% Rule" is a risk management principle suggesting that a stock should be sold if its price drops 7% below the original purchase price. Regarding trade volume, a "standard lot" in the US market typically consists of 100 shares.

Market Ownership and Transaction Costs

Reports indicate that the top 10% of U.S. households own approximately 90% of the stock market. Regarding transaction costs, selling shares incurs brokerage fees (₹0–20), Securities Transaction Tax (STT) (0.1%), DP charges (₹13–20), SEBI turnover fees, stamp duty, and 18% GST. While delivery trade brokerage is often minimal, intraday trades typically cost up to ₹20 per trade.

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