Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions will usually (not necessarily always) be closed before the market close of the trading day. This is the opposite of After-hours trading. Traders that participate in day trading are called day traders.
Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures.
Day trading used to be the preserve of financial firms and professional investors and speculators. Many day traders are bank or investment firm employees working as specialists in equity investment and fund management. However, day trading has become increasingly popular among casual traders due to advances in technology, changes in legislation, and the popularity of the Internet.
Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures.
Day trading used to be the preserve of financial firms and professional investors and speculators. Many day traders are bank or investment firm employees working as specialists in equity investment and fund management. However, day trading has become increasingly popular among casual traders due to advances in technology, changes in legislation, and the popularity of the Internet.
RULES THAT YOU SHOULD FOLLOW TO GET SUCCESS IN INTRADAY TRADING :
1. Whenever you initiate a trade, have clear plan. What is the target, what is STOP LOSS.
2. If you cannot keep stop loss, then stop trading.
3. If you cannot book profits, stop trading.
4. Markets are volatile , do not wait for all targets to be achieved.
5. If you are able to make profits and price give reversal, book profits and exit.
6. If trade is not working in your favour, exit immediately. Don’t wait for stop loss to trigger.
7. When we are wrong, we need to EXIT immediately .
8. When your targets are HIT, exit immediately. It might REVERSE.
9. Only in TRENDING market, you can expect all your targets to be HIT.
10. In sideway market, keep your positions LOW, better don’t trade .
11. Do not trade in Options as positional call during sideway markets.
13. Index Trading should be avoided in sideway market / when market is trading in narrow range.
14. Before you start trading, you should have all reference points which influence the price variation.
Open, High, Low, Close, Weekly Open, Weekly High, Weekly Low, Weekly Close,
Open, High, Low, Close, Weekly Open, Weekly High, Weekly Low, Weekly Close,
15. Whenever you trade, ensure the Risk : Reward ratio is at least 1:2 .i.e., If you are making positions, if the loss (or point at which trend may change) is 1 rupee for 2 rupees profits, then only you should initiate trade.
16. When you are making positions for intraday and you are losing money, do not carry positions for next day, your loss can increase.
No comments