• The NSE can cost unprepared investors thousands of dollars or more in a few hours.Stock Market Crash image by Paul Heasman from Fotolia.com
  
  The NSE or Nairobi Stock Exchange is the stock market that trades in India. Trading in this market is different than trading in the NYSE in New York. According to the Share Tips Info website, the NSE is a very volatile market that can change in a matter of moments. Understanding how to trade on the NSE can help beginning traders ease their way into this complex market.
  
  

Use a Simulation

• The ups and downs of the NSE should be simulated before you try it out in the real world. Paper trading involves keeping track of simulated money and trades. Traders write down the money they are pretending to invest as well as the stocks they are buying. They then use the real-world stock market changes to gauge their gains and losses. Online games such as WalapaFX simulate the NSE without the paperwork. Players sign up for a free profile and receive simulated money. They then compete against other traders by observing stocks and buying and selling. They receive reports stating how well they are performing against other traders. Using real NSE market changes in the game helps them learn how to respond to the changes in the NSE.
  
  

Take Your Losses

• In any market situation, traders will inevitably lose money. However, it is important to know when to pull out from a losing situation to avoid a disaster. According to the Profit Plus website, it is a good idea to sell when the stocks are selling for 25 percent under your peak profit. The peak profit is the money you are hoping to earn from your stocks before you sell. You should also study your losses carefully after you sell. Try to analyze what could have made the market turn against you. This includes analyzing news reports or the buying and selling traits in stocks similar to yours. If you are continually losing in a day, don't try to regain your profits through more trading. Simply sell your stocks, take your losses and try again the next day.
  
  

Don't Spread Yourself Thin

• Buying multiple stocks distributes your money more thinly but can help avoid major loses if one of your stocks goes completely bust. However, buying into too many stocks can limit your profit if a stock suddenly takes off. It can also create a confusing portfolio. Keeping track of 10 stocks is much simpler than keeping track of 40 stocks. Watching too many stocks may lead to confusion in your trading and can cause you to miss out on the best times to sell and the best times to buy.
  
  

Stay Unemotional

• Losing or gaining a lot of money can cause a trader to become emotional. Never trade in an emotional state. Elated or agitated trading can lead to poorly thought out trade decisions. According to the Share Tips Info website, the NSE is a volatile market. Any major gain or loss may be reversed as quickly as it was won. Considered and well-planned trading can let a trader trade at her peak abilities.