FROM AN EXPERIENCE
DO’s & DON’Ts OF INTRADAY TRADING
It seemingly looks to be the simplest and the most rewarding. But in intraday trading one has to be very fast and quick and have to be on your toes always, so there are certain rules which one has to keep in mind.
If index is in positive from yesterday and the share you are holding is in minus then it should be cut and if intraday trend of index is in buy then one should buy a stock in which is in plus.
If index is in minus then one should look to short stocks which are minus and not stocks which are in plus.
It is not necessary that a stock which is weak today during intraday trading might be weak tomorrow also, simultaneously if a stock is strong today might not be strong tomorrow
If US Markets have gone up overnight, the markets here in all probability will open strong, so one should be quite careful when buying stocks as the general psychology of public is to buy when good news is there.
Being a contrarians is very important while trading intraday.
Stop loss is a must while trading intraday.
Always trade in very liquid stocks i.e. which have very high volume because as entry and exit can be very fast in such stocks.
Do paper trading before you actually start trading so that when you start making paper profits, then shift to actual trading.
Keep your volume constant e.g.: if you trade in five lots of nifty future then trade in five lots only. This position can be increased only when you are satisfied with your trading for a month. It should not be that one day you buy five lots and next day you trade in ten lots and third day you get a loss and stop trading for two days.
Fear and Greed are at maximum levels while trading intraday so always have less position when you are new to intraday trading as otherwise you will be mostly under tension.
(to be contd)
A GENERAL VIEW OF NIFTY WITH CHARTS
Watch these three charts given below very carefully..
CHART 1 (WEEKLY CHART OF NIFTY INDEX)
We see a clear HEAD & SHOULDERS Pattern standing in a slanted trend line (Breaking point around 5300)
in the below set Weekly chart.. Do You..?
CHART 2 (EOD CHART)
365 DAYS EXPONENTIAL MOVING AVERAGE AROUND 5400 WILL HELP NIFTY SPOT TO BOUNCE BACK …?
Shall we see 5400 & 5300 shattering and even smashing 5177 level too in forthcoming weeks ???
Do not worry about the levels – We will update it after watching whether 5400 or 5300 becomes a support or not.
CHART 3 (EOD CHART OF NIFTY SPOT)
*( Literally) A MILLION DOLLAR QUESTION - 3rd WAVE STARTED OR NOT ?????
Put out of your mind about ECONOMY, INFLATION, POLITICAL ISSUES and BLUE CHANNEL BLA-BLAs
Anything can happen in India
JUST WAIT FOR THAT BUDDIES..
TODAY’S TRADING STRATEGY
OF NIFTY FUTURES – MAY 9th
A NOTE:
Friday closing – 5547.95
Friday closing – 5547.95
Since 27th of April the very first day on Friday(May 6th)
Nifty Futures had closed above
3 Days Exponential Moving Average
Some resistance @ 5580 is seen on an EOD chart today.
So, how will be the movement after this…?
Watch 5561 closely today..
If cuts and sustains above 5561 for 10-15 minutes
a sure hike upto 5580 is possible
Decisive cross over well take Nifty Futures to 5596-5613
At the maximum upto the 7DEMA-5613,
hike is allowed technically today.
On the other hand,
If Nifty Futures trades below 5560
for 15 minutes an intraday slide upto 5533-21
and 5509-02 is very much possible.
What if kisses 5500 and take a turn?
or hits 5596 and start a downward rally ?
More details only to the subscribers..
Join hands soon
and get more valuable tips in market hours
SHARE TIPS TODAY (MAY 9th )
1) Sell SKSMICRO @ 331.20
T1 – 327.10
T2 – 323.50
T3 – 317.30
2) Sell CHENNAIPETRO @ 213.30
T1 – 210.30
T2 – 208.55
3) Sell ONMOBILE @ 111.90
T1 – 110.15
T2 – 108.75
4) Sell RPOWER @ 117.30
T – 114.50
Disclosure:
1. Stoploss levels, reverse trades are exclusively to the subscribers.
2. Solely I have all the rights to stop this free tips
at any moment.
Subscribe as soon as possible and earn more.
Join hands with us and enjoy pals.
WHAT IS FISHY...?
(Wall Street Journal) Silver Is Down, but China
Silver is sinking even further Friday morning, as investors follow
George Soros and John Burbank in dumping the precious metal.
Silver on Tuesday suffered its worst one-day drubbing in three
decades. In a troubling sign for silver bulls, silver futures are down
to about $40.45 per troy ounce, down more than 12% over the first
two days of this week. Gold is unchanged, highlighting the
difficulties silver is having.
For months, professional and individual investors piled into silver
to protect against weakening value for the greenback, and to guard
against a pickup in inflation. Precious metals often serve as an
alternative to paper currencies.
The U.S. dollar has fallen 9% so far this year compared with a
basket of major currencies, through Tuesday, boosting the silver
trade. Many smaller investors favor silver investments over gold,
partly because silver is more affordable, earning it the sobriquet
“the poor man’s gold.”
Silver fans have this possible arrow in their quiver: Signs that the
Chinese are stilling buying, according to traders.
“If the Chinese weren’t significant buyers I’d be shorting right now,”
said a hedge-fund manager with a major position in gold and silver.
And precious-metal believers still have John Paulson to lean on –
he told investors at a breakfast on Tuesday that he expects gold to
hit $2,500 to $4,000 in the next three to five years. Gold now trades
at more than $1,530 an ounce.
Paul Touradji of hedge fund Touradji Capital Management LP also
is holding on to his sizable gold and silver positions, according to
someone close to the matter.
TRADING IS NOT GAMBLING – TRADERS ARE
"Despite the fact that gambling and trading are two very different
things; many traders seem to behave as gamblers instead of day
traders.
In gambling the winner would like to believe that he has an
unstoppable streak of good luck and will try to ride his momentum
until he gives all his winnings back to the casino.
The loser, on the other hand, will try to get out of their bad luck by
risking all his money in belief that he will be able to win back all
the money he's lost. In trading unsuccessful traders work in this
manner.
True trading is not like gambling though. Unfortunately, most traders
who have not reached maturity tend to act in this manner and over
trade for the same objective as a gambler…"
Theoretically, day traders should be able to get over the practices
of a gambler. He must try to evolve from this point until he becomes
a strategist. This can only be achieved though through developing
the necessary skills, the discriminatory attitude and the realization
that the market moves in a certain way and this way should be
discovered.
There are no secrets to day trading though. Everyone should realize
that the behavior of the market is a bit predictable by using
indicators and patterns which have existed before.
Everyone should also recognize the truth that the market works
in a psychological way and one must only develop keenness to this
reality. Also, everyone should acknowledge that skills take time
to develop and once they start to build-up, the trader will also
start to become more efficient in the trade.
Overtrading does not work in this business. Those who practice this
technique either have no sufficient knowledge in this field or have
not out grown the common attitudes of the amateurs which depend
highly on their priorities.
"…The most common reasons why amateurs over trade are
a)they trade to confirm that they are good and that their system
works
b) they are stretching their limits to prove that they can make
profits whenever possible
c) they try to get off with the emotional burden especially when
they are losing their trade by selling or re-entering the market if the
signs are good enough for them,and
d) just like the gambler they only want to take advantage of their
luck to win back their losses…"
(Refer to ‘OUR POLICIES’ in blog archives
regarding queries)
For further details,
Contact Admin (Analyst) @
(0)9788563656
MESSAGE TODAY
-OLIVER WENDELL HOLMES
RELAX CORNER
REALLY AMAZING BETWEEN 7:08 and 8:35 minutes - JUST WATCH IT GUYS
JUST SMS TO YOUR PAL
Failure is unimportant. It takes courage to make a fool of yourself.
-Charlie Chaplin
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