Indian share market is among the fastest moving share markets in the world. Therefore, it is very important that investors take a lot of precautions while investing their hard earned money. The share market can excite and leave you nervous on the same day. The dynamics of the Indian share market are such that they succumb to gravity after reaching sky high heights. It is always helpful to get some share trading tips before investing in the market. Here are few things that you should not do so that you to avoid facing the wrath of the bull:

Never Panic – This is surely one of the most helpful Indian share market tips. Investors should accept that Indian share markets are some of the most volatile markets in the world; share prices will keep on rising and falling. Do not sell of your shares even if you think they are dropping fast. Sooner or later they will recover and will reduce your losses and if things go your way, you may profit from your shares.

Never make huge investments – This is one of the share market tips India that most of the investors ignore. Whenever the market is on a bear run (it is falling), go ahead and invest some money, but make sure you never invest a huge amount. Keep buying shares periodically and never invest a lot of money in just one company. Everyone understands that they should buy stocks when the market has reached the lowest expected level and sell when the market rises, however, they fail to realise that investing huge amount at one go will never do any good.

Never chase performance – Never expect that a share is good because its price is high. Often investors have an illusion that a costly share is a good share and will yield the maximum profit. The performance of the share is never controlled by its price; it is controlled by market speculation. Whenever investors start selling shares, their prices will drop. The converse is also true. So never buy a share only because it has a high price. Buy shares only after analysing the share for some time. Also base your purchase on the expected future performance of the company.

Never ignore the expenses – This is one of the share trading tips that will save your profits from shrinking. Whenever you buy or sell shares, you will have to pay securities transaction tax and brokerage fees. Whenever you are selling your share for very small gains, the offset caused by these charges may leave you in a loss. Even if you sell your shares within a year of buying them, you will have to pay 10% of your profit share as short term capital gains tax. You won’t have to pay any such fees if you sell them after a year because there is no long term capital gain tax.

These Indian share market tips will shield you from a lot of information on the damage caused by the volatile Indian share market.