Most Important Guidelines for Intraday Traders
- Planning Entry, STOPLOSS and Targets are must before you enter the trade.
- Cutting the loss to very minimum is key for getting successful in trading; otherwise you will be thrown out of market;
- A big “NO” to Emotions, Sentiment, Stubbornness, Laziness, Greed, Fear, Hope and Wish;
- Be very active and very quick in making decisions in booking profit or loss;
- Trade confidently with cool mindset (not with panic, confusion and tension);
- Trend is friend; never trade against trend;
- Ideal risk reward ratio should be 1:1.5 to 1:2 and minimum 1:1 to considered before entering into trade;
- Never ever hold losing trade; never carry forward intraday trade to next day;
- 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;
- When you are wrong, accept the same and exit immediately;
- Only in trending market, you can expect all targets to be hit;
- Don’t hold more than 2 open positions;
- Believe in charts and Technicals (not rumors / news);
- Trade like a machine or robot without any emotions.
- 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.
- Trading is a serious business not a hobby.
- 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;
- 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.
- 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.
- 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
About Post Author
