NIFTY FUTURE-NIFTY CALLS NIFTY TECHNICAL ANALYSIS

Nifty Future >> Do's and Don'ts

Given below are the general do's and don'ts for traders dealing in stock markets as there are attendant risks associated with it.

Do's

  • Always deal with market intermediaries registered with SEBI/exchanges.
  • Give clear and unambiguous instructions to your broker.
  • Always insist on contract notes from your broker.
  • Verify the genuineness of transactions on the exchange website, in case of doubts.
  • Always settle dues through the normal banking channels with the market intermediaries.
  • Carry out due-diligence before registering as client with any intermediary.
    Before placing an order with the market intermediaries, please check the credentials of the company, its management, its fundamentals, the recent announcements made by them and various other disclosures made under various regulations.
    The sources of information are the websites of exchanges and companies, databases of data vendor, business magazines and so on.
  • Adopt trading/investment strategies commensurate with your risk bearing capacity as all investments carry risk, the degree of which varies according to the investment strategy adopted.
  • Further, traders are requested to carefully read and understand the contents stated in the Risk Disclosure Document, which forms part of trader registration requirement for dealing through brokers in the stock market.
  • Be cautious about stocks that show a sudden spurt in price or trading activity, especially low price stocks.
  • Be informed that there are no guaranteed returns on investment in stock markets.

Don'ts

  • Don't deal with unregistered brokers, sub-brokers or intermediaries.
  • Don't deal based on rumors generally called 'tips'.
  • Don't fall prey to the promises of guaranteed returns.
  • Don't get misled by companies showing approvals/registrations from government agencies as the approvals could be for certain other purposes and not for the securities you are buying.
  • Don't leave the custody of your de-mat transaction slip book in the hands of any intermediary.
  • Don't get carried away with the onslaught of advertisements about the financial performance of companies in print and electronic media.
  • Don't blindly follow media reports on corporate developments, as they could be misleading.
  • Don't blindly imitate the investment decisions of others, who may have profited from.