Stock Market and Trading - some useful tips

My own initial experience with the stock market was a disaster where I lost quite a bit of money.But I was fascinated by the entire concept, so wanted to give it another try..; I spoke to a number of people and almost everyone had some bitter experience or the other to recount and share, and many had hardly made any profit in day trading..;
Sometime back i met a family friend at a wedding, got talking to him , while talking he told me that he had taken VRS (voluntary retirement scheme) from his bank job ,and now concentrated on the stock market.I was of course very interested in knowing about his experiences..; so later met him and spoke about it.I was plain surprised to hear that he had never ever lost any money, but on every trading day he made an average profit of Rs 800-Rs 1000, which he said was more than enough for him( Rs 16,000-20,000 per month). This seemed too good to be true, but he had been doing this for a long time and invested a lot of time on researching about various stocks and their movements, and was reaping the benefits of all that hard work..;

These were some of the simple but time tested strategies he used while trading ..

1,Never invest huge amounts of money in any one share
2,Never be greedy, book your profits keeping a target
3, Try to have some knowledge of the shares you want to invest and trade in
4, Keep a check on share prices and movements

Now, after several trials and errors i too have come to a safe method of trading.

Here is how I tackle the stock market  now  based on the advise given to me by this friend..;

I have bought some shares at various points of time, generally when the markets are down and the prices have come down considerably.

When the market is booming and my share prices have gone up considerably I sell these shares and also put a buying price ...
For example :- If i have 100 shares A,B,C,and D, and prices of all these shares have gone up much higher than what i paid, I call up my broker and put a sale price, and once that is executed , I put a much lower buy price.( for example if I sell share A at Rs145, I put a buy price at Rs 135)If this order gets executed then I have made a tidy profit .

But on the other hand if the share price goes up , then I have to give delivery of the shares. And wait may be for a week at the most or sometimes even less than that time for the prices to come down considerably, when I buy back the shares..keep doing this whenever there is an opportunity. But take care to keep a personal account of all your trades. The profits may not be huge, but they are steady . The most important factor to be considered is that there is very little risk and losses involved here...