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How to be a winning trader?


        Most of the clients approached me first with these queries: "I have enough time.Show me a good part time opportunity"," I like to work from home and make money online","Can i get consistent returns?"
Sure.Online day trading is a perfect solution for all these queries.But,you have to practice like a professional.
           Day trading requires low capital as margin money.It is a concept of leveraged trading.You don't need to worry over the nights about positions or holdings.Each day starts with fresh opportunity.You can opt trading,only if you like to do it.There is no compulsion for sitting infront of the computer always.This is so liberal to start and stop as per your convenience.Eventhough,becoming a winning trader is not an easy task.
It is a learning process of updating market information,knowledge and skills.
Each beginner can practice successful trades by implementing the below rules.
1.Watch the world indices daily and evaluate the trend .
2.Install a trading platform in your computer for understanding the market.
3.Buy a professional candlestick chart with automated buy sell signals and confirm the accuracy.
4.Start your trading practice in indices ( Nifty,Dow jones. etc) or commodities(Gold or Copper.)
5. Do not take excess leverage .Margin is not luxury.
6.Track your progress daily and record it in a notebook or excel for at least one month.
7.Market is not a casino.Dont follow rumours and negative messages from others .Use your brain to analyse the situations.You can do it alone.
8.Avoid trading in sideways market without trend .
9.Strictly follow stoploss orders to limit loss when entering into trades.
10.Focus in only one scrip at a time and be a master.Don't mix different scrips or markets.
11.Learn to do Long(Buy) in positive market and Short(Sell) in negative market.You can practise this with the future contracts .ie:Nifty, Mini Nifty, Mini Gold etc.
12.No one can make all trades profitable.Practise consistently for maximum success.If you win 6 trades out of ten,you are above average.
13. Normally,you may get one or two good trades in a day.
14.Dont expect more.Calculate as percentage.
Rs.1500 gain out of Rs.30000 capital is not less.Remember,it is 5 % return.
15.Focus on small profits and keep going on.
Don't dream to double your capital in a week or month time.

Comments

  1. good article
    add more examples to make it more real life
    regards
    Veera

    ReplyDelete
  2. Vinod natarajanMarch 27, 2012 9:19 am

    I went through your blog article on financial freedom.Good article.Have a reality check on how the common man disposes his extra income? How many do trading? Or for that matter are interested in the market? People usually look for quick money without risk and mostly all follow the large trend.
    Financial markets have taken a beat in the last few yrs with recession and scams but that’s not so with the slow and steady real estate market and the metals (especially Gold).
    Keep up your writing, its good to know and I will for sure check on your blog once in a while.

    ReplyDelete
  3. Dear Sony,

    Congratulations for an extensive post. Continue the good work.

    ReplyDelete

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