Prior getting in into bargaining you should know how much the goods cost, so visit the fixed price stores, ask from friends, and do your homework very well.
When you are into street buying, make sure you pay half of the initial asking price of the items you are willing to purchase. At times when you buy in bulk / more than one thing, it is possible to get items at far low price.
Control your excitement of buying the goods, how much ever you are interested or like it - Pretend to be uncaring.
First Sale Sentiment of the shop vendors – Try to shop at the beginning of the day, this will get you things at very reasonable price as the shopkeepers consider their 1st SALE (BONI) to be lucky.
Do NOT HESITATE be bold and ask the shopkeeper is it the best price of the good he is selling or is there any scope for discount. If you are well aware, he is charging more then get into direct negotiation.
Price Dropping this is an effective way – let shopkeeper list the price FIRST then tell him yet the item is too expensive then he would ask you to list your price, which increases the chances of purchasing goods at much more cheaper rate.[NOTE WHEN YOU SAY THE AMOUNT SAY MUCH LOWER THAN YOU WILL TO PAY].
Be ready to hunt for the best, do walk, and check out what rest stalls are offering at the market; Mostly they have similar and common items. Then bargain at 2-3 shops and buy from the one who offers you the best deal.
Please note bargaining is FUN maintain your cool and crack a best deal. After all, it is all about being street smart.