Most Important Guidelines for Intraday Traders

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  1. Planning Entry, STOPLOSS and Targets are must before you enter the trade.
  2. Cutting the loss to very minimum is key for getting successful in trading; otherwise you will be thrown out of market;
  3. A big “NO” to Emotions, Sentiment, Stubbornness, Laziness, Greed, Fear, Hope and Wish;
  4. Be very active and very quick in making decisions in booking profit or loss;
  5. Trade confidently with cool mindset (not with panic, confusion and tension);
  6. Trend is friend; never trade against trend;
  7. Ideal risk reward ratio should be 1:1.5 to 1:2 and minimum 1:1 to considered before entering into trade;
  8. Never ever hold losing trade; never carry forward intraday trade to next day;
  9. If trade is not working in your favor, exit immediately. Don’t wait for STOPLOSS to trigger; you can always reenter into trade if it goes back again expected positive direction;
  10. When you are wrong, accept the same and exit immediately;
  11. Only in trending market, you can expect all targets to be hit;
  12. Don’t hold more than 2 open positions;
  13. Believe in charts and Technicals (not rumors / news);
  14. Trade like a machine or robot without any emotions.
  15. Respect and embrace the very normal 50-62% retracements that take prices back to major trends. If a trade is missed, wait patiently for the market to retrace.
  16. Trading is a serious business not a hobby.
  17. Always trade along with trend; if trend is +ve look for buying opportunities in strong stocks, if trend is –ve look for selling opportunities in weaker stocks; never trade against trend;
  18. Respect and embrace the very normal 50-62% retracements that take prices back to major trends. If a trade is missed, wait patiently for the market to retrace.
  19. Trade like a mercenary guerrilla. We must fight on the winning side and be willing to change sides readily when one side has gained the upper hand.
  20. Remember, Intraday trading is most profitable style of trading if you get good at it, but it is “THE MOST” difficult style of trading to achieve success

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