Rules for Day Trading

Hi Members,

Today I got this mail from DreamGains@*****groups.com for day trading rules.

As a day to day trader, in the long run, one can never ever earn for the stock market unless you overcome the following drawbacks within your own attitude



1. When in profits, they tend to book very early and during losses they wait until their holding capacity withers away,

There-by creating a worst risk to return ratio.

2. They take an exposure, which is many more times, their worth.

3. Interest, brokerage and other charges burden is ignored, which itself forms 75 to 80% of their earnings or losses at the

end of the year. (If the broker had to even refund a part of brokerage, one could wipe out one's entire loss at the end of

the year. One cannot earn even the 10 paisa brokerage paid out of the scripts traded in, where is the question of

earning in rupees)

4. Emotions are attached with every transaction they enter into. Shares bought at higher prices becomes a part and

parcel of our life, as we try to recover our loss from the same script when other scripts are moving. This is opportunity

lost out of stupidity.

5. No room for averaging as the maximum quantity is bought at the initial levels.

6. Buying at the highest selling at lowest.

7. Challenging the market at every stage while finally booking losses, due to their inability to hold on

8. Shares bought from the long-term point of view in the form of delivery get converted into short-term profits due to the

human psychology of booking profits very early and vice versa.

9. Relying too much on mouth to mouth publicity. please note there are no experts in this market, except for your own

self, as you are the best to know, what that money means to you.

10. Entering into too many securities at a time eventually losing track and accountability.

11. Cursing their luck and the markets for their own faults.

12. Ignoring reversals of the trend.

13. Always playing in the bullish trend and ignoring the bearish trend i.e. earning through going long and not going short.

14. The greed factor to earn big amounts in a single day.

15. due to earlier heavy losses by playing in big quantities, to recover the same, quantities dealt with next are very small,

compared to quantities dealt earlier. Due to this the losses are huge and profits to set off those losses are limited,

thereby being in a loss at any given time. Please note that losses can never be recovered. It is always earning and

loosing and your success depends on which is more frequent.

16. Negligence and let go attitude and inability to judge their mistakes after every loss that finally they are thrown out of

the market. The once easy earning factor and over confidence rides very high in their minds, which forces further risks,

and finally they lose 9 times out of 10.

17. Over trading when in loss on private borrowed funds which finally leads to debt trap. the good business, from where you

have diverted funds to this market to earn, will close down too.

18. Tips suggested by others only tells you when to buy/sell, but without you knowing how much to risk and how many

shares to to trade in with proper stop loss , it is all in vain

Hi,

I agree with the article.I have also made such mistakes.
Once it happened to me.I had incurred loss in day trading .And had already left for another work after getting frustated with the loss.But I came back haly-way and invested with fresh mind and was able to reduce the loss.

I learnt one lesson.Never get frustated with loss , keep losses minimum possible & re-invest , as you are here for earning , not for losing the battle and running away.

But invest with positive attitude and never never run away & learn lessons from your losses.

But always work on risk analysis .

Raju

great points .... i hv overcome some of them ..
damn thing is after a hafty loss

Humm... All have gone thru these stages. Experts will always tell you not to intraday trade, thats for the reasons stated above. Me too learned the same, too late though!
Leasons should be learned for life.
1. Avoid Intraday Trade.
2. Do NOT trade on Tips, make your own informed trading decisions.
3. If you want to be in the market, then teach yourself to read the charts.

Regards

It's tough to make money in intraday trades but not entirey impossible.A no. of experts trade intraday themselves. The beauty of TA is that the principles are applicable in all the time frames from tick chart to yearly charts. Recently, my Guruji told me that you are a successful trader only when you can trade with the simplest charts in any given time frame in any market.

But as a soldier going in the warfield, we must first equipp ourselves with armours without chinks.

Best Regards,
--Ashish

Hi Ashis,

Thanks for your quote.
Frankly, I am yet to meet someone who has been a winner net-net doing Intraday trading(I inculde myself in the otherwise side ).

Regards

MANOJ

Meet Saint.

Present market is very sluggish and prices do not seem to be moving in long time causing vexation.in most cases prices are not falling by more than 2% in a day.one may be better off buying small lots at various levels say at 0.5 % variation and come out when profit is sighted as a falling share spikes up at intervals before finally closing down.

Yes he may the one of those in that 5 % of the smart daytraders. Now he has thought us to fish. I am sure he will give some lessons on Daytrading or has he done it already? I am still reading.....

All the Best
Ken

I think Aluflouride is a good investment for doubling money