Skip to main content

Day Trading:Hidden Rules.

                             Large number of people wish to become successful in day trading.Unfortunately,most of them taste failures and losing their hard earned money.Few years ago,a friend of mine created 10 times profit in single day.Amazing!All other traders in his circle get motivated and concentrated in day trading.But,their trading  story ended as tragedy.Why some one succeed and others fail?let us examine the hidden rules of day trading.
 Here,my friend's gain was accidental.He has bought few option contracts on the basis of some news and it was speculative in nature.Other friends have blindly expected this fortune in life and it was their biggest mistake.Day trading will not provide huge profits continuously.But,you can earn a decent return if following the below rules. 
1.Try to make small profits.It is not a difficult task.but,you should have enough capital and time.
2.Watch stock market indices and understand the trend.Trade with the trend.Not following the trend is like swimming against the tsunami waves.You cannot conquer the market.
3.Market represents mass psychology.so,don't be greedy or panic in sudden market situations.
4.Fix small profit targets.
5.Use stoploss orders to prevent market crash.Stoploss point should be lower than the profit target.
6.When you trade intraday,do not engage in other activity.Mental control is crucial for day trading success.
7.You need tools such as online trading platform and a charting software.Candlestick charts with Moving averages,RSI or MACD are sufficient.
8.Understand the trendlines.Get an idea about support and resistance levels.Fix your profit targets at resistance levels.
9.Trade in futures and options.Shares are less volatile and its' profit potential is low in a day.You can opt shares for investing.But,futures and options provide comparatively better movement and trading opportunity.
10.Don't trade in sideways markets.It is useless and time consuming.You can make profit if positive or negative trend  is clear in the market.                    

Comments

  1. Sony.. Its really Good Suggestions.. Most of the people loss money because they get greedy and want to make huge profit in short term. As like u said fix small profit margins and keeping stop loss can give u a decent return in the market.

    ReplyDelete
  2. Mr.sony in Kerala most of people Lost money in Trading, Thats Intraday and investing also,I guess they are blindly follow the Tips and News (Old News).They Don't Follow the Technicals and Fundamentals,In Your views are correct ,If fix Small profits and satisfy this small profits.

    Regards
    Sumeshrajp@gmail.com

    ReplyDelete
  3. Honestly, it is impossible to find the exact rules in trading but you can always make your rule that you can follow when you trade.
    most active penny stocks

    ReplyDelete
  4. Indeed, it is not restricted to the money related world alone. Click Here

    ReplyDelete

Post a comment