Golden rules for Intra-Day Trading
Everyone wants to earn money and most of us think, Stock market is the easiest way to make profits as we see profit charts of others. But, It is just an illusion. Once you take entry in Stock market and start trading, You realized that it is not as easy as It seems. Day Trading could be nightmare also if you don’t have any experience and trading only on the basis of market rumors/news.
If you are a beginner in Share Market and wants to make your career in Day trading, you have to follow some golden Intra-Day Trading rules which will help you to earn a consistent income from share market on daily basis. These rules are set up by the hard work and experience of successful IntraDay Trader of Stock Market and we are gathering all the rules of successful trader on a single platform i.e; StocksVibe.com.
Intra-Day trading Rules set up by the successful Day Traders:
- Ride With the Trend: If trend of the day is bullish, you should never short the stock. No matter whoever is sharing with you. Market will not do any partiality with the stocks. If It is bullish, every stock will take entry no matter right now or after 1 or 2 hours.
- Pre-Planned your strategy: Before taking entry in any day trade, Mark your entry price, Exit Price as well as Stop-loss. Greedy is curse. So, never change any parameter after taking trade.
- Avoid Market Rumors: Don’t do day trade on market Rumors. Find a logic for particular trade and execute it.
- Don’t put all eggs in a basket: This is the most famous proverb which is applicable everywhere as well as Share Market. If you are taking a trade and you are fully confident, never put more than 20% of your money in a single trade. You don’t know how market could disguise you.
- Don’t trade on Fundamental view: Day Trading is all about the technical indicator. If there is any good/bad fundamental news about stock market, Don’t trade on that news. It could disguise you.
- Control Emotions: Don’t mix emotions with day trading. If you are making loss and no trade is going good, Stop for a day and rest. It’s okey; this day is not for you. Same thing applicable if you are making profit. Profit booking should be done by you without mixing with greed.
- Don’t take more than 2-3 trades at a single time. It is hard to manage so many scripts at a single time.
- Maintain a Risk Reward ratio of 1:2.
- Squared off your all trades before 3:15 in afternoon. Don’t carry your loss for tomorrow. It is crime for the Intra-day Trader.
- Market is highly volatile till 1 hour of opening and before 1 hour of closing. Try to gain profit at that time.
In the end, Patience is the key to success as you can see how Adani Group converted 15 K into 85 lac in just 23 years. If you are taking any trade, keep following it with patience. These are Golden rules for Intra-day trading which are set-up by the successful Day Traders. You can comment your rules below. We’ll try to add up them also.