Intradaytips com'S 11 Golden Rules for Intraday Share Trading in Stock Market
1) DO NOT OVER TRADE AND DO NOT HURRY TO BOOK PROFIT.
If your trading capacity is Rs.1,00,000 -Trade only for Rs.50,000- Do not trade for Rs.2,00,000.- do not over trade. We advise not hurry to book profit when market is in your favour - wait for the right time.
2) Trade in DIFFERENT SECTORS.
Do not put your all capital in one sector divide your capital in different sector. Trade in 2 to 4 Stocks at a time with strict Stop Loss.
3)TRADE WITH TREND
Do not be afraid to buy at high prices and sell at low prices. Do not buy just because it is a low price & do not sell because it is high. Buy when there is bad news and Sell when there is good news.
4)DO NOT EXPECT PROFIT EVERY DAY.
If you consider you are a smart trader who can make profit on every trade, you are 100% wrong. Always be flexible and accept the fact as soon as you realize that you are on wrong side of the trade. Simply get out of the trade without changing your strategy duringthe market; it may cause you double losses.
5)WITHDRAW PORTION OF YOUR PROFIT.
It is must that trader must take a portion of the profit and put it in separate account. This is absolutely must for long term stability in the market.
6)AVOID TRADING IF YOU ARE NOT CLEAR
NSE & BSE will never close, every morning at 9.00 a.m. ( 5 days in a week) it will open. So do not try to be a millionaire in a day. It is next to impossible to earn money every day in stock market.
7)IF YOU WILL AVOID STOP -LOSS, NEXT DAY MARKET WILL AVOID YOU. (FOR TRADING WITHOUT CAPITAL)
Do not average out in our share tips when market is not in favour. Limit your losses by keeping a stop loss order - Never cancel a stop loss order after you have placed it, otherwise you may loose more.
8) TRADE ONLY IN HIGH VOLUME STOCK ( FNO STOCKS)
In low volume stocks the volatility is too high and chance of Stop Loss limit getting failed is too high as there would be no Buyer or seller at your Stop Loss Level.
9)SELL SHORT AS OFTEN AS YOU LONG.
Remember that if you are caught in a SHORT SELL POSITION,
high chances are that it will give back in less than
a month. But if you are caught in a LONG POSITION it
takes much more time to build (Sometimes we have to
wait for 2- 3 years for our buying prices.)If you consider
10 different reasons affecting the market (nse &
bse)- on an average, 7 reasons are for bearish trend
& only 3 reasons for bullish trend. Hence be cautious
in taking a long position.
10) RUMOURS CAN RUIN YOU PLEASE DON'T FOLLOW THEM.
RUMOURS IN SHARE MARKET CAN RUIN YOU PLEASE DON'T FOLLOW THEM
or ‘Rumors’ is part of your strategy. Believe
in Charts, act on Charts. There is no second best option.
11)DONOT FORGET TO ADJUST DAILY EXPENSES.
Do not forget intrady trading expenses like Brokerage, telephone & Mobile
bills, Internet charges, computer maintenance, etc.
in the profits.
ADVANTAGE OF INTRADAY Trading (Day Trading)
1) You will have to pay less Brokerage.
2) Everyday you can do fresh trading according to the market trend because
everyday market trend is different.
3) After stock market closing, no body can predict next day's market opening.
4) There is no need to pay any carry forward margin.
5) In intraday you can trade good volume with low risk. Hence chances of earning
more are higher.