.Prominent Daily trading Rules:
1.Use Demo trading Account Properly:
First of all its important to do couple of
months demo trading practice before any
live stock trading. If traders will go directly
to live trading account then it can cost them
a huge amount of money, because lack of
basic knowledge would also charge them
a big money in real account so better to
start with demo trading practice at first.
2.Invest Less:New traders can't
come up with a good experience and
knowledge at first so they have improve
about it at first and that's why it become
so much important for them to start with
lower amount of money. And when they
will get enough understanding and knowledge
then later they can think about it to increase
the amount of their investment in stock
market business.
3.Stop Gambling:Mostly new traders
start to work with gambling when they join
as a new trader in live trading market of stock
trading business.New trader's don't have a proper
trading plan,discipline and mindset and that's why
they mostly start with gambling which should be
avoided by them as soon as possible they can
In real gambling is not the solution of consistent
gains, its worst can damage our career very badly
here in this business.
4.Proper Learning:it does no matter we are
performing with demo trading account or real
trading account proper learning will be very essenti-
al to see some fantastic growth in our trading knowledge
and experience. I know there are so many trader's in stock
market who just spend time for seeking money, means they
don't want to pay proper focus on right learning and just
try to buy and sell for no reason. A proper learning will help
us to do trade on right time within a proper reason.
5.Avoid Over trading: As we know that over trading is
also dangerous in this business. In Stock market its better
to work with proper planninga and goal, That's clear that
our goal will be shorter so better to close down our charts
and pc when we have our target in account already. Even
in the situation of loss we should avoid over trading because
it can lead to the emotions and higher losses in account.
Better to keep some rest after a loss or in a profitable
condition its also best to check the future trades in next
trading day session rather than the same day.
6.Stick to your trading plan: Its very urgent for trader's to
stick to their trading plan always, there are so many market
conditions which can force us to change our mind for trading
but it should be important for us to follow our trading planning
without any change. Because if once we have entered in market
then any kind of change can force us to close our trade with loss
most of time. So better to check everything before placing
any order in the market.
7.Find your trading Edge: Finding our trading edge could be
so much helpful for us in stock market business. With the help
of finding our trading edge it will be easy for us to work with our
trading patterns, our risk size selection, etc. It can also help us
to decide that what to do, how to do and when to do, Means it
will make our trading plan more effective than before.
8.Follow the Trend: According to me following trend would be
very helpful in stock trading business. As we know that
every share have a trending market, and that can be our best
time to enter in the market. This is also written everyone on
net that "Trend is Our Friend" and its a very true thing, following
trend would give you a clear idea about market demand
and supply zones in stock market.
9.Technical analysis:Technical analysis is also one of
the best and effective traditional way of analyzing the
market in this business. Following technical anlaysis
would be so much profitable to judge the market best
support and resistance areas, and they are also
important to know the market supply and demand
fluctuations.
4.Concept of Time Frames in Day trading:
Time frames selection will be so much
important for trader's when they are working
with a short term goal, or when they have a
day trading goal in mind.We can perform
short term trading with long term time frames as
well but its hard to understand the short term
signal in long term time frame so many time.
Personally I have done some time short term
trading in h4 time frame also but got more
better output from those two short term time
frames.There are some of popular time
frames which can be best to perform with day
trading goal in stock market
Some of them are as follows:
1. Minute 2 time frame:In day trading or short
term trading as much as lower time frame you
choose more better quick entry and exit points
you will grab in stock market. So Minute 2 time
frame is one of the best time frame to know the
direction of short term market trend. Later I will
explain that how you have to make the Minute 2
time frame effective with some of popular trend
follower indicators. I personally Mostly use the
minute 2 time frame in my trading analysis,
It give me a lot of help to do trade with quick
trading patterns or my favorite trading patterns
without any long waiting time.
2.Minute 5 time frame: This is also one of the
best time frame to do trade with short term
target. If you are not satsfied with minute 2 time
frame and getting more misleading siganls in
that time frame then you can concentrate on 5
minute chart time frame. Five minute chart
time frame could have more accurate signals
than the 2 minute time frame. Its totally depend
you that how you have to manage those two time
frames for your analysis. Personally I mix both to
get an best validation of my trading signals.
Pros and Cons of Minute 2 and Minute 5
time frame:
Pros:
1.Best for short term trading:Short term time frames
are best for short term trading goal. especially if traders
are searching for short term trading goal then they can
use Minute 2 and Minute 5 time frame for their trading.
2.Easy to Find Short term Trend:Its easy to find the
short term trend market direction with the help of those
two short term time frames. If a trader would have better
understanding and experience of those two time frames
then trader can do mastery in short term tend analysis
with these time frames.
3.Edge:Short term time frames can also help
traders to find out their edge in stock market
trading. For example if you are regularly getting
your target in your hands within proper consistency
under lower amount of losses then its a clear sign
for trader's that they have got their trading edge now
in this stock market business.
4.Good Flexibility:Those time frames would only
charge the short term amount of risk for your trades.
but its depend upon your management also that how
much risk you are taking for your trades, I believe that
1/2% risk trade formula is best for traders.Furthermore
trade will be closed in few days and we can just find out
one more another trading opportunity to do trade in the
market. Means to say that here in short term trading
we don't have to hold our trades for long run, some time
in long run we have to hold our trades for a very long term
time and that can be so much frustrated and time
consuming as well.
Cons:
Short term time frames have some disadvantges for
traders and if there are some advantages then there will
be some disadvantages as well and some of them are
given as below:
1.Time Consuming: As we know that in short term
time frames we have to pay more long term time
for trading than the long term trading. In long term
analysis we have a concept called set and forget
but in short term time frames its possible to do that
here we have to a regular trading within a trading
session some time especially if we have continue
losses in a day. Futhermore there are many ways
to make our day trading less time consuming but
it still be more time consuming than those
long term time frames.Trader's could have their
own opinion about this, but this is my poersonal
opinion what I feel about those time frames.
2.Misleading Signals:There is no doubt in it
that short term time frames are more misleading
than the long term time frames. Short term time frames
like Minute 2 and Minute 5 come up with a regular
short term buying and selling patterns so its obvious
that so many time we will see the misleading
signals also on those shorter time frames.
3. High Cost:The other disadvantage of short
term time frames is that we have to pay high cost
for trading in them. Due to frequent trade buying
and selling entries, we have to pay a higher cost
to broker with it. But its not a big problem for those
trader's who know that how to handle their
money management and risk management in trading
I believe that if a trader have good experience and
trading system then we can convert that high cost
in lower cost or trading or brokerage.
4.A lot of Focus: In short term trading and time frames
we need a lot of quick focus during trading, we have to
watch out some of stocks continuously,in long term
frames we don't have to follow this kind of concept.
Trader's need a quick response and have to place their
order's very quickly so many time in short term time
frames. So need a quick action than long term time
frames.
1.Use Demo trading Account Properly:
First of all its important to do couple of
months demo trading practice before any
live stock trading. If traders will go directly
to live trading account then it can cost them
a huge amount of money, because lack of
basic knowledge would also charge them
a big money in real account so better to
start with demo trading practice at first.
2.Invest Less:New traders can't
come up with a good experience and
knowledge at first so they have improve
about it at first and that's why it become
so much important for them to start with
lower amount of money. And when they
will get enough understanding and knowledge
then later they can think about it to increase
the amount of their investment in stock
market business.
3.Stop Gambling:Mostly new traders
start to work with gambling when they join
as a new trader in live trading market of stock
trading business.New trader's don't have a proper
trading plan,discipline and mindset and that's why
they mostly start with gambling which should be
avoided by them as soon as possible they can
In real gambling is not the solution of consistent
gains, its worst can damage our career very badly
here in this business.
4.Proper Learning:it does no matter we are
performing with demo trading account or real
trading account proper learning will be very essenti-
al to see some fantastic growth in our trading knowledge
and experience. I know there are so many trader's in stock
market who just spend time for seeking money, means they
don't want to pay proper focus on right learning and just
try to buy and sell for no reason. A proper learning will help
us to do trade on right time within a proper reason.
5.Avoid Over trading: As we know that over trading is
also dangerous in this business. In Stock market its better
to work with proper planninga and goal, That's clear that
our goal will be shorter so better to close down our charts
and pc when we have our target in account already. Even
in the situation of loss we should avoid over trading because
it can lead to the emotions and higher losses in account.
Better to keep some rest after a loss or in a profitable
condition its also best to check the future trades in next
trading day session rather than the same day.
6.Stick to your trading plan: Its very urgent for trader's to
stick to their trading plan always, there are so many market
conditions which can force us to change our mind for trading
but it should be important for us to follow our trading planning
without any change. Because if once we have entered in market
then any kind of change can force us to close our trade with loss
most of time. So better to check everything before placing
any order in the market.
7.Find your trading Edge: Finding our trading edge could be
so much helpful for us in stock market business. With the help
of finding our trading edge it will be easy for us to work with our
trading patterns, our risk size selection, etc. It can also help us
to decide that what to do, how to do and when to do, Means it
will make our trading plan more effective than before.
8.Follow the Trend: According to me following trend would be
very helpful in stock trading business. As we know that
every share have a trending market, and that can be our best
time to enter in the market. This is also written everyone on
net that "Trend is Our Friend" and its a very true thing, following
trend would give you a clear idea about market demand
and supply zones in stock market.
9.Technical analysis:Technical analysis is also one of
the best and effective traditional way of analyzing the
market in this business. Following technical anlaysis
would be so much profitable to judge the market best
support and resistance areas, and they are also
important to know the market supply and demand
fluctuations.
4.Concept of Time Frames in Day trading:
Time frames selection will be so much
important for trader's when they are working
with a short term goal, or when they have a
day trading goal in mind.We can perform
short term trading with long term time frames as
well but its hard to understand the short term
signal in long term time frame so many time.
Personally I have done some time short term
trading in h4 time frame also but got more
better output from those two short term time
frames.There are some of popular time
frames which can be best to perform with day
trading goal in stock market
Some of them are as follows:
1. Minute 2 time frame:In day trading or short
term trading as much as lower time frame you
choose more better quick entry and exit points
you will grab in stock market. So Minute 2 time
frame is one of the best time frame to know the
direction of short term market trend. Later I will
explain that how you have to make the Minute 2
time frame effective with some of popular trend
follower indicators. I personally Mostly use the
minute 2 time frame in my trading analysis,
It give me a lot of help to do trade with quick
trading patterns or my favorite trading patterns
without any long waiting time.
2.Minute 5 time frame: This is also one of the
best time frame to do trade with short term
target. If you are not satsfied with minute 2 time
frame and getting more misleading siganls in
that time frame then you can concentrate on 5
minute chart time frame. Five minute chart
time frame could have more accurate signals
than the 2 minute time frame. Its totally depend
you that how you have to manage those two time
frames for your analysis. Personally I mix both to
get an best validation of my trading signals.
Pros and Cons of Minute 2 and Minute 5
time frame:
Pros:
1.Best for short term trading:Short term time frames
are best for short term trading goal. especially if traders
are searching for short term trading goal then they can
use Minute 2 and Minute 5 time frame for their trading.
2.Easy to Find Short term Trend:Its easy to find the
short term trend market direction with the help of those
two short term time frames. If a trader would have better
understanding and experience of those two time frames
then trader can do mastery in short term tend analysis
with these time frames.
3.Edge:Short term time frames can also help
traders to find out their edge in stock market
trading. For example if you are regularly getting
your target in your hands within proper consistency
under lower amount of losses then its a clear sign
for trader's that they have got their trading edge now
in this stock market business.
4.Good Flexibility:Those time frames would only
charge the short term amount of risk for your trades.
but its depend upon your management also that how
much risk you are taking for your trades, I believe that
1/2% risk trade formula is best for traders.Furthermore
trade will be closed in few days and we can just find out
one more another trading opportunity to do trade in the
market. Means to say that here in short term trading
we don't have to hold our trades for long run, some time
in long run we have to hold our trades for a very long term
time and that can be so much frustrated and time
consuming as well.
Cons:
Short term time frames have some disadvantges for
traders and if there are some advantages then there will
be some disadvantages as well and some of them are
given as below:
1.Time Consuming: As we know that in short term
time frames we have to pay more long term time
for trading than the long term trading. In long term
analysis we have a concept called set and forget
but in short term time frames its possible to do that
here we have to a regular trading within a trading
session some time especially if we have continue
losses in a day. Futhermore there are many ways
to make our day trading less time consuming but
it still be more time consuming than those
long term time frames.Trader's could have their
own opinion about this, but this is my poersonal
opinion what I feel about those time frames.
2.Misleading Signals:There is no doubt in it
that short term time frames are more misleading
than the long term time frames. Short term time frames
like Minute 2 and Minute 5 come up with a regular
short term buying and selling patterns so its obvious
that so many time we will see the misleading
signals also on those shorter time frames.
3. High Cost:The other disadvantage of short
term time frames is that we have to pay high cost
for trading in them. Due to frequent trade buying
and selling entries, we have to pay a higher cost
to broker with it. But its not a big problem for those
trader's who know that how to handle their
money management and risk management in trading
I believe that if a trader have good experience and
trading system then we can convert that high cost
in lower cost or trading or brokerage.
4.A lot of Focus: In short term trading and time frames
we need a lot of quick focus during trading, we have to
watch out some of stocks continuously,in long term
frames we don't have to follow this kind of concept.
Trader's need a quick response and have to place their
order's very quickly so many time in short term time
frames. So need a quick action than long term time
frames.
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