Month: March 2019

QUALITY OF A DAY TRADER

Posted on by Dharamveer

TO BE A SUCCESSFUL TRADER SPECIALLY IN OPTION TRADING REQUIRED FOLLOWING GOOD QUALITIES:

  1. TRADER MUST BE PHYSICALLY FIT AND ALSO FROM MENTALLY. FOR PHYSICAL, TRADER MUST DO SOME MORNING EXERCISE OR MORNING WALK GOOD FOR HEALTH. MEDITATION SHOULD BE A PART OF DAILY LIFE. MEDITATION HELPS TRADERS TO CONTROL EMOTIONS & REMAIN COOL AND PATIENCE DURING TRADING.
  2. ALWAYS PLAN YOUR TRADE BEFORE TAKING WITH SPECIFIC STOP LOSS TARGETS AND MUST HAVE PART PROFIT BOOKING HABIT IN EVERY TRADE AND TRAILING STOP LOSS AND ALSO HAVE SOME OPEN POSITION FOR LAST TRADING HOURS IN TRENDING MARKET.
  3. SINCE TRADING IN OPTION HIGHLY RISKY YOU MUST TRADE WITH DISCIPLINE AND ACCORDING TO SOME GUIDELINES. YOU MUST SAVE YOUR CAPITAL KEEPING STOP LOSS IN THE SYSTEM AND NEVER DO OVER TRADING.
  4. SINCE MARKET IS FLEXIBLE, SO TRADER ALSO MUST BE FLEXIBLE. TRADER MUST BE READY TO BUY AND EXIT MANY TIMES IF STOP HIT AND REENTER IF BUY TRIGGER.
  5. YOU MUST BEHAVE AS A TRADER NOT AS INVESTORS. YOU MUST KEEP DISTANCE BETWEEN TRADER AND INVESTORS. SO THAT YOU SHOULD NOT BE EMOTIONALLY ATTCHED WITH PARTICULAR TRADE IF GOES AGAINST YOU. INTRADAY TRADER MEANS FOR A DAY AND SHOULD NOT CARRY THE POSTION IF NOT EXIT OR FORGET TO KEEP STOP LOSS. YOU MUST EXIT IF FORGET TO KEEP STOP LOSS.
  6. YOU MUST DEVELOP A SKILL TO TRADE UNDER REVERSE CONDITIONS. FOR SAY YOU HAVE PLANNED TO TRADE THE FOLLOWING: TO BUY 30100 CE @195 STOP 160 TARGETS 240-300. TO BUY 29800 PE @160 STOP 130 TARGETS 220-270. :NOW YOU BOT 30100 CE @200 PRICE WENT TO 245 AND THEN STOP HIT @160 AND 29800 PE BUY TRIGGER @160 BUT EMOTION ATTACHED WITH 30100 CE AND YOU DID NOT EXIT EVEN STOP LOSS TRIGGER AS YOU DID NOT KEEP STOP IN THE SYSTEM NEITHER YOU BOUGHT 29800 PE @ 160 AND PRICE WENT TO 269 THEN YOU REALISED YOU MISSED THE BUS.AVOID THIS KIND OF HABITS.
  7. TRADER MUST AVOID EMOTION. NEED TO KEEP EMOTIONAL BALANCE AND MUST FOLLOW THE TREND AND DO TRADE. ANY TIME MAKET CAN CHANGE THE TREND FROM LONG TO SHORT OR FROM SHORT TO LONG. IF YOU TAKE YOUR TRADE ACCORDING TO THE MOVE OF TREND YOU CAN BECOME A SUCCESSFULL TRADER.
  8. TRADER MUST AVOID TRADING IN SIDEWAYS MARKET OR WHEN MAKET IS TOO VOLATILE OR CHOPPY.
  9. DO NOT COUNT PROFIT & LOSS IN EVERY TRADE. A SUCESSFULL TRADER ALWAYS TRADE ACCORDING TO SPECIFIC METHOD AND KEEP FUND MANAGEMENT SKILL.
  10. A SUCESSFULL TRADER ALWAYS COME WITH PLAN SAY: SUPPORT & RESISTANCE OF THE MARKET AND TRADE ACCORDINGLY.A SUCCESSFUL TRADERS KNOWS WHEN TO TAKE A LOSS AND MOVE ON TO THE NEXT TRADE.THIS TYPE OF MENTAL PREPARATION PREVENTS ALL THE NEGATIVE EMOTIONS SO THAT YOU DON’T HAVE TO BE STRESSED OUT DURING A TRADE OR ILL WHEN YOU ARE LOSING MONEY.

SO BE A SUCCESSFUL TRADER: PRE-PLAN A TRADE BEFORE ENTERING A POSITION. KNOW AND UNDERSTAND YOUR RISK. CONTOL YOUR EMOTIONS. NEVER TRADE IN FEAR, BUT IN CONTROL. YOU HAVE TOTRADE THE MARKET, THE MARKET DOES NOT TRADE YOU.

HOW TO TRADE IN SIDEWAYS MARKET.

Posted on by Dharamveer

BETTER AVOID TRADING IN SIDEWAYS MARKET.

NOW HOW TO KNOW MARKET TURN SIDEWAYS:

DURING SIDEWAYS, MARKET MOVES IN A RANGE: IN NIFTY SAY 20 TO 50 POINTS AND IN BANK NIFTY SAY 100 TO 150 POINTS AND VOLATILITY WILL INCREASE. WITHIN A SECOND PRICE FALL TO 15 POINTS AND UP 10 POINTS IN NIFTY AND 40 POINTS DOWN AND 25 POINTS UP IN BANK NIFTY FOR MORE THAN AN HOUR.

BEST WAY NOT TO TRADE IN SIDEWAYS MARKET SPECIALLY IN OPTION BECAUSE  STOP LOSS WILL TRIGGER  BOTH CASE IN CE AND PE AND YOU WILL LOOSE CAPITAL AND YOU WILL BE FRUSTRATED.

TRADE ONLY IF RANGE BREKOUT OR BREADOWN.WAIT FOR DECISIVE MOVE AND KEEP PATIENCE.

EVEN IF WILLING TO TRADE( AS SOME HAVING ITCHING PROBLEM THEY CAN’T REMAIN WITHOUT TRADING) THEN TRADE FOR SHORT PROFITS ONLY SAY 25-35 POINTS IN BANK NIFTY OPTION AND 7-12 POINTS IN NIFTY OPTION BY KEEPING PROPER STOP LOSS OR AS MENTIONED.

DURING SIDEWAYS AVOID MULTIPLE TRADING. NO NEED TO TRADE EVERY DAY.

SAVE YOUR CAPITAL , WATCH MOVIES, GO FOR TRAVELLING. DO MEDITATION , SPEND TIME WITH FAMILY  KIDS ETC.

STOP LOSS

Posted on by Dharamveer

Always maintain strict discipline in your trades. Remember to keep a strict stop loss and booking profits is a must (So that you know how much you can afford to lose).

ALWAYS KEEP STOP LOSS WHEN GIVEN OR KEEP 35 POINTS STANDARD STOP LOSS IN BANK NIFTY OPTION AND 10 POINTS IN NIFTY OPTIONFOR INTRADAY TRADE.

STOP LOSS IS A PART OF THE TRADING SYSTEM. YES THERE WILL BE A LOSS DUE TO STOP LOSS TRIGGER BUT YOU WILL SAVE YOUR CAPITAL TO BECOME ZERO AND THAT ‘S THE BENEFIT OF STOP LOSS.