When an investor follows the trading system, he knows where exactly he stands or where he is likely to stand at a future date. He knows the entry and exit from a position. This is done with a two fold objectives. To get consistent returns and to put a ceiling on the risk! The trading systems also apply check on the possible whimsical judgments of the investor and control his emotions. The wise saying goes, ?Time and tide wait for none.? The importance of timing in share trades is very important.



The research and analysis exercises carried out by brokers or consultancy services is aimed at providing profitable trading strategies, services and products to their clients. Profitable trading implies using powerful tools, innovative techniques and advice on booking of profits.

Booking of timely profits centers around three issues-know what to trade, when to trade and how to trade! When buying a share, an intelligent investor visualizes the entire process through which the trade will pass through. Once a potential trade is identified, the investor must ride the entire uptrend and book profits before the trend takes the U turn.

The preparation for a trade for booking profits depends upon both the fundamental analysis and technical analysis of the share. The exact entry, exit and stop-loss levels are identified.

Booking of timely profits means that the investor is following the correct decision- making process. Even though the ultimate aim of all investors is to make profits, the process and procedures of attainment of that goal varies from trader to trader. One may be a day trader, swing trader, position trader or investor. Each needs to be guided by the broker through appropriate innovative products and services. The advice for the day trader is entirely different from that for others.

The profit taking art comes by experience. No cut and dry formula exists to make profits regularly and avoid losses. By following certain strategies, losses can be minimized. Not all good brokers advertise their services through mainstream media and there are many brokers who are capable of tendering perfect advice for maximizing profits.

An investor generally builds a portfolio of 10-15 shares. Two shares, though belonging to the same segment of industry, can never be identical from the profit point of view. You need to identify and inform your broker, the stop loss level of each share. Experience reveals that you can't just buy shares and make profits. The timings of buying and selling are very important. The most savvy and seasoned traders commit mistakes and suffer losses. When you have decided the stop loss level, you are minimizing the losses and the damage to your portfolio is checked.

Educating yourself methodically is not only applicable to school and college education; it relates also to the strategies that you need to employ at the stock exchange. You need to have your independent approach to timely booking of profits, though your broker's advice is invaluable. Never compromise on principles of investments, follow all the steps unfailingly and do continuous research on the shares of the companies that make your portfolio. Do not believe in the cock and bull success stories in the market and take a lenient view of the stop loss limits fixed by you on a particular share. You may have strong reasons to modify the stop loss limit of a particular share?but that is an exception.

Never think that money is made in the share market in high-flying shares and options.

Look out for bargains, develop a strong sense of timing to book profits, use common sense and let your emotions not take control of your decisions.