Intraday Trading, it seemingly looks to be the simplest and the most rewarding. But in intraday trading one has to be very fast and quick and have to be on your toes always, so there are certain rules which one has to keep in mind :
Share This :
- Do not trade in the First 1 Hour, take some to start day trading.
- Whenever you initiate a trade, have clear plan. What is the target, what is stop loss.
- If you cannot keep stop loss, then stop trading
- If you cannot book profits on the day, stop trading
- Markets are volatile, do not wait for all targets to be achieved.
- If you are able to make profits and price give reversal, book profits and exit
- If trade is not working in your favor, exit immediately. Don't wait for stop loss to trigger
- When your targets are HIT, exit immediately. It might REVERSE
- Only in TRENDING market, you can expect all your targets to be HIT
- In side way market, keep your positions LOW, better don't trade
- Do not trade in Options as positional call during side-way markets
- Index Trading should be avoided in side way market / when market is trading in narrow range
- Before you start trading, you should have all reference points which influence the price variation. Open, High, Low, Close, Weekly Open, Weekly High, Weekly Low, Weekly Close, Fibonacci entrancement levels, Pivot Points, Support, Resistance, 52-week low, 52-week high etc.
- Whenever you trade, ensure the Risk:Reward ratio is at least 1:2. i.e., If you are making positions, if the loss (or point at which trend may change) is 1 rupee for 2 rupees profits, then only you should initiate trade.
- When you are making positions for intraday and you are loosing money, do not carry positions for next day, your loss can increase.
- As a Beginner, you should only trade in EQUITY, not in Futures / Options
- If you are not a professional trader, AVOID Intraday trading
- Do not Invest all your MONEY in one Stock
- Diversify the Risk, invest in minimum of 2 - 3 stocks
- When market is Bullish, take LONG positions in STRONG stocks
- NEVER initiate Short Strong Stocks
- When market is Bearish, take SHORT positions in WEAK stocks
- NEVER initiate Long positions in Weak Stocks
- When some stock moves up/down 2-3% in 5 mins, do not jump to take positions. Most of the weakness / strength might have been finished in that counter.
- HAVE PATIENCE. Your target may not come in 5 mins always. It may take hours together.
- Have CONTROL on Your EMOTIONS. Though i mentioned it last, this is the MOST important aspect which will get you SUCCESS in Stock Trading.
0 comments:
Post a Comment