As all know trading is buying and
sellng stocks, options, stocks futures or commodity futures for a short time in
the hope of a quick profit. But it is not as simple as looks. Almost 99% of new
traders including me lost a large capital in trading. Trade without proper
knowledge is just like a gambling, you can make profit once or twice but then it
surely dig u. To be a success trader it need a great knowledge, experience,
control over your emotions, greed and fear. There are some basic rules will help
you to minimise your losses grow your capital.
1. U can never be rich by
trading:- If you think so and if it is true then everyone in
this world would be rich.
2. Dont take trading as your
profession and put maximum of your hard money into it.
3. Trade intraday
only: – As now a days market is mostly depend on global factors
and no one knows where the market will go tomarrow and most important you you
can sleep tension free and happly with your loving family who always wants to
see you happy.
4. Trade with equal capital
daily:- If you were trading with 1 lots of any stock or
commodity futures from last 2 days and made profit, don’t be over confident
and trade with 2 or 3 lots today. If it goes in loss it will eat your whole
profit from two days, although you will be in loss. it is the common habit of
all new traders.
5. Don’t trade forcely or be
hurry in trade:- As said above dont give priority to trade. Dont
think i have to make money today itself and enter the trade anytime. Wait for a
right time to enter and wait for your levels, have patience. If you dont get
your levels dont trade that day, It is better to end a day with no profit than
a loss.
6. Trade with stoploss always:
- Never ever trade without stoploss and place stoploss and
target in your system not in your mind specially in commodity trading
because market changes their behaviour in no time, when you comes to know, you
will be in great loss already. Suppose you are in buy position in 2 lots of gold
with out stoploss and you see after 15 minutes it is 400 points down then you
will be in Rs. 80000 loss in no time, and i think you had seen gold moved a 1000
points in a day many times. Stoploss is also a main part of trade. Trading
without stoploss is like commiting a sucide.
7. Control your emotions, greed
and fear:- This factor plays a important role in trading, if you
hits stoploss and in loss you want to recover it that day only and
in frustration you again enter the trade in hurry with emotions and after some
time you relise you had make a mistake and book another loss again. It is the
nature of humans. when u feel this type of feelings in your mind just leave your
computer for an hour and walk a little and just lets cool down your mind, dont
put yourself in trouble again. loss is also a part of business.
8. whenever you see profit take
it:- When ever you see you are near to your target book it.
don;t wait for your target, or if you are trading with multi lots book 75% and
hold 25% with trailing stoploss to your entering price.
9. Trade wit trend
always:- Dont make buy position when market is falling and sell
when market is rising, go with the trend, because trend is your friend. play
against the trend is just trying ton catch a falling knife.
10. Dont follow the news or
tips of TV channel:- They will confuse you. But analyse all
their view and trade on your own. best to follow the supports and
resistance levels and trade accordingly intraday.
11. There are so many specialist now a days
giving paid service to clients, they give tips, with target and stoploss, but it
also need a experience to play with them. 80% of traders also goes in loss
following them. We advice not to follow them, just refer them for a time being
then follow. If any one can earn lakhs from their tips then everyone would be
rich without any hard work. Just think why they give you this service for just
Rs.5000 per month if they can earn in Lakhs following them.
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