Many of people have interest in share market – the days we have seen in the last few weeks are awesome – the quality bullish market gave a lot of benefits to the shareholders.
Among those people some of to love to doing Day trading – it’s a kind of job for them – they trade few minutes fro the day – some are for an hour or some for entire days. It’s completely a choice of that day trader to spend time in the market.
Everyone earn or lose their money daily but smart people have made fewer losses and collect big profits whereas some newbies or less technical knowledge can’t have that patience or smartness to make big profits.
It doesn’t mean they would never earn for long. Once they have understood the system they can earn big profit through the trading.
What are the things you should know before the start of day trading
Knowledge is the key –
As we have known without any certain knowledge we can’t do any work because clarity about the work process is the most important thing in any field of work. So Day trader must know about how this system works actually because many of newbies in this field have made losses due to lack of knowledge. So that first take that knowledge and kick start your career and make money from one of the world’s best-earning platform.
This article may give you a lot more clarity on what things to do before the start of Day Trading
- Wake up 4 hours before the start of the market:-
Many of people have a bad habit to gets up before 5 min to the start of market and sit for the longer day – but its completely a wrong behaviour towards trading – because its all about your mindset – share market test your patience, knowledge, attitude etc. if you are not respecting to his time it will never care about you too.
It’s a big ocean where many people are doing the day trading it’s kind of job of many people, so you have to deal with them through the system. You should well aware of what’s going into the market – what are the trending stocks or whats happening in your profession related or favourite sectors.
To having a successful trading day you should wake up early in the morning
Meditation and Exercise –
Meditation is the strongest part of your entire life – it’s really simple to know yourself – trading check your patience and patience comes through meditation only.
You should feel relax for 10 min after you wake up. And get all those positive energies from the universe which you require the most- it’s like charging your phone battery to utilize it for a whole day as like same you have to charge up at morning to do a successful activity.
Exercise will help you to relax your body – it will keep you happy and positive mindset for a whole day. It is imperative – while trading, you must not be wracked and unfocused towards ongoing things.
Daily Study today’s market
Start studying after get ready from mornings activities – understand the pre-market and took a quick review of what you have done yesterday. If you have made mistake kindly note all the time and read them before the start of next day Trading.
Decide your today’s strategy and your stocks – take technical analysis review and understand the chart carefully – take if any required suggestions from the market specialist or you can do it by yourself too.
Set time for trading –.
be specific while doing trading don’t be get distracted from other work or any activity. Aftermarket analysis, you should know how much of time you have to spend in the market. If the things are going in your favour keep stick to it else you can leave the market for the day.
Do not enter into the wrong trading zone – it should be a habit that if you are not doing and feeling good then take a pause for that day. Do not allow yourself to do overtrading.
Avoid penny stocks
The smart trader never trade on penny stock or low volatile stock – they have the mindset to take specific volatile stock and quickly book profit and wait for next trade – or they will pick another stock from the favourite stock list. So make your list before the start of the day.
Manage your losses
Most of the people never understand when you have to cut your losses. It is really important that having that control on yourself to stop your losses on the correct time.
It’s terrible and wrong trading to wait in losses to get recovered your losses until turning into the profit.
Sometimes it will happen according to you but the next day if you stuck in the same situation and you are continuing the same method this might will punish you with a big loss.
So that, don’t play always in the wrong side, keep flow with the trend it will give you benefits on time to time.
Stay Cool And Calm –
Off course as we have discussed patience is the key in Day trading but being cool and the calm person at the time of trading is also beneficial for Day Trader because if you making money that time you should know your target, unnecessary don’t need to play a part of greediness. It will reverse back you with Big NO.
Suppose, you couldn’t manage well that day and make back to back lossy trade, in a short time it will make you disturb and distracted.
So that you could start fighting with a market which never is won by you. Doesn’t matter how much of money you are carrying in your D-mat account, it will make your account empty for sure.
Fix your stop-loss –
Before the beginning of the trade you should be ready with a plan and in addition to you have to note your stop loss point – obviously, we have the system where we can set our stop loss and save us technically from the big losses, but still many of trader never like to set the stop loss. They trade in their own zone but it completely has their own choice to trade as they want to..
Don’t overtrade –
Don’t overtrade and make yourself unhappy at end of the trading session. You will get the correct entry point but you should know where to stop – while that particular trade making profit or loss. You should keep carry one good habit to not take more than 3-5 trade in a day.
If someone has a huge profit target they can take trade according to their profit booking strategy or we could say trailing your long way profit. It’s base of knowledge I guess without technical chart study nobody can make consistent profit in this way.
Just keep note that doesn’t make extra trade if you were dealing in the loss zone, doesn’t even try to not cover your losses if you are not confident enough.
Learn how to catch fish –
Here you have to understand where this chart wants to flow – what’s its trend and where you get your first fish.
The moment when you take your first trade is crucial. Many of people take a trade on the basis of support and resistance;
Yes! of course, it’s necessary to find support and resistance, however, timing plays an important role – exactly where you have to take entry – to catch your first fish.
Learn what exactly trend is to be when this trade gets changes, where to check the volume – if you are aware of most volatile stocks it’s really awesome to switch your trade choice for that day.
So most of the people took wrong entry –some technically strong people change their trade and make that trade profitable or some of the people don’t know the high or low pick then they would surely come under the loss zone.
Coming on to the conclusion you have to make only one decision whether to buy or sell the trade, but it’s just not simple as we said, it require much-needed study and patience against what’s going on in front of your screen while trading.
It’s really genuine to make losses and learn from it, but if you are making the same mistake repetitively, then you are not learning, you are just trading to make money and allowing stress towards to you.
You should often trade with keeping a positive mindset and learning approach to win in any situation without gambling. If you don’t feel good, don’t trade, that’s it.
Go through the complete process and make yourself a perfect trader. Don’t be greedy in any situation. Step by step you can create your own portfolio better and better.
Majorly learn technical analysis, Candlestick behaviour, Chart Patterns, and of course all the above points which we have discussed.