Trading in stock market: Key strategies you should follow

This is especially true for are a new trader and or for those who don't have any strong analysis behind the decision.

This means traders should basically go for the stocks in which Institutions and Big funds are invested. They are less likely to give huge momentum in small timeframe.

Don't trade the stocks which are in news if you are a newbie as they have high sentiments attached to them and as the price moves these emotions of fear and greed keep on increasing, which in turn increases the volatility of the stock.

A trader should make sure that they are only risking 2 percent of their capital on a single trade if they are intraday trader and/or 10 percent per trade if they are swing/positional trader. This may vary based on their trading style number of trades, risk per trade etc. They must make sure that they are following all risk management rules and are under the guidance of a successful trader or a mentor who guides them through their thick and thin.

This depends on several factors, said Divyam Parashar, Founder and CEO of Upmarket Academy.

"If a person has a small capital (< Rs Llakh) then it is not possible for them to trade comfortably in futures (The instrument in which positional trades are mostly taken), where as if one has a large capital (>Rs 10 lakh) they can trade in whichever segment they want to, be it intraday or positional," he said.

A rich person with a large capital of Rs 10 lakh may not have the "Guts" or the appetite to digest a loss of Rs 20,000 comfortably without letting it affect their emotions and their trading patters or a retail trader with small capital might have the appetite to digest a risk of Rs 2,000 comfortably without affecting their trading and emotions, or vice verca, as per Parashar of Upmarket Academy.

It is important that the trader has some important personality traits like decision making, practical approach and control over emotions in order to become a good positional or intraday trader.

If a person does not have time during the day to take intraday trades or has a job to go to or college to attend, Divyam Parashar, Founder and CEO of Upmarket Academy said.