Sunday, 31 May 2015

Rules to succeed @ Intraday Trading: 

1. Always strictly follow stoploss. Those who dont maintain stoploss are unfit-100%.
2. Always book 50% profit at few points up when the stock moves in your direction and then keep your buying price as stoploss for other 50%. If you notice the stock reaches near to target then book another 50% of existing quantity and modify stoploss to initial 50% rate for the remaining quantity and wait for further movement and exit.
For futures trade two lots and sell one lot immediately after some positive movement of the stock and keep stoploss for the second at buying price and exit completely when near to target. Dont wait for exact targets- market is always volatile.
One trade without stop-loss can wipe out complete profit earned by 9 trades- You lots in five trades today with stoploss, next day can make 5 successful trades if you save your capital.
I did a trail last week: One of my assistant who dont know anything about market, I told him few stocks to trade. I informed him that if he see red color then we will get money and if he see green color in profit/loss column then we will loose. While trading he did immediate booking when red colour and averaged it out when green colour and waiting to recover loss. But the real scenario is: he bought more quantity when stock is making profit and made more profits and he booked immediate profits i.e. stoploss- which he dont know.
Its all mind set- so plan it properly. Never forget stoploss if not one day you need to forget trading and look for something else. Trading is always profit for people who looks plus or minus the same during stoploss booking (Actually its not stoploss its a capital saving point) and never carry emotions of one trade into another trade. Each trade is unique and dont be greedy to win everything in one trade. Market will be open life long, so we will pluck it slowly.
When a call is given by analyzing the news in a positive way, in between someone will analyze the same news in a different way and turn the stock down.

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