10 Important Tips for Trading
1. Place your order at 10:10 pm.
2. Place your first order with stop loss below two levels and concentrate on the first target and with every target achieved follow rule number 3.
3. A: For futures:
If the Nifty is moving in right direction (your targets are getting achieved) do as follows:
If you are holding 5 Nifty contracts book profit in 1 at each target you achieve.
If you are holding 2 Nifty contracts book profit in 1 at each target you achieve.
If you are holding 1 Nifty contract book complete profit with 1st target achieve.
B: For cash market:
The same technique as in (A) above but you need to keep a watch on NIFTY.
3. If your stop loss is cut twice then End the trading and forget the loss. If it is early (or even few hours before the close) then you can enjoy it as a holiday. (Believe me it works wonders because you have converted your loss into positive by enjoying the day as a holiday.).Overtrading is a Sin.
4. Do not calculate your profit and loss on a daily basis. Do it on a weekly basis.
5. Forget your losses as soon as possible. Never try to recover your losses. Instead begin a new game everyday just like SACHIN TEDULKAR.
6. The moment stock market closes forget everything whatever happened there. Do not carry them to your home. There are two major drawbacks of doing that which distinguishes a normal trader with a winner:
(a) You will create a bad environment at home with your family which no one wants to do. Remember whatever you are doing, you are doing for them. So who is better for you: Stock market or your family? I hope everyone have the same answer. If someone has different then please either change this or leave the group.
(b) Psychologically it is proven that the mind which does many things separated by different other things works effectively. We as our favorite tool recommend every trader to listen to music before leaving for the stock market from home.
7. Give at least 30 minutes to understand our daily analysis and the effect of each section (Future analysis, day trading analysis, international market analysis, advance decline report and other reports if any). And these 30 minutes must be before 9:30.
8. Ideally you should have the plan for the whole day written on some piece of paper (in the language which you understand the best, this is actually the analysis of our daily analysis by you) and that paper should always be with you. Consult the paper every time you feel trapped / nervous / rumors etc. Don't ever think of any other thing (CNBC(specially that smiling guy and that pretty lady that you all know- Not to be named :-), Guys they get lakhs for every word ),any broker report, any other person's report, don't even finance minister's.) Guys you are carrying a report of 100 experts and it has enough for at least that day. For the next day you will get the next report. So don't worry.
9. Do send your weekly report and do attend weekly voice one to one session for better trading/learning new skills/to modifying techniques if something wrong happens.
10. Always reach market between 9:30 - 9:45. Don't delay ever or reach early. Believe me there are drawbacks on the both sides.
I wish you all very best of luck once again. Believe me everyone knows the rules but no one follows. My job here is to make everyone adhere to the rules till you start following on a natural basis.
By Ms Suma Madhavi
