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FRIENDS, PLZ READ THIS BEFORE YOU TRADE

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FRIENDS, PLZ READ THIS BEFORE YOU TRADE

Postby DEEPA ACHARYA » Sun Jun 19, 2011 5:01 pm

Dear friends !

All of us know that trading in the stock market involves risk and one should trade as per her/his loss bearing capacity. The followings are some rules that are known to most of traders(but not followed by many) who are having certain experience in the market and also should be known to new entrants

Intra day trading is an art rather than mere speculation. Some people think trading is gambling. But I have other views. Intra day trading is highly profitable if certain rules are followed.

RULES

* Expect the unexpected and protect yourself from being a victim to the adverse situation that may arise.

* Never ever trade without using STOP LOSS and if you think price will hit stops and move up or down as the case may be, you may keep the level in your mind till the level reaches stops and quit boldly without any hope and accept the loss as a part of trading.

* NEVER be greedy to grab anything that you see rising.

* Book profits in stages say at 25%on Ist tgt 50% on 2nd tgt and balance as 3rd tgt hits. This may reduce your profits but reduces your risk as well or trail stops to catch the big movement. Never be sorry if price returns from Ist tgt and hits stop at buy price or sell price. This does happen sometimes but only for 5-10% of the trades.

* While buying/shorting never jump and start trading rather wait and watch to see that the recommended levels sustain.

* Capital erosion is common in trading, therefore try to prevent it.

* The cause of failure in intra day trading is taking huge losses and small gains and cursing own self for being stupid.

* NEVER EVER fall in love with any stock. Rotate sectors.

* No prayers work in the market; only believe in levels and what you see on the screen. Never follow rumours.

* Never buy a stock because it has fallen much and vice-a-versa.

* Never invest more than 25% of your capital on a particular stock and always sit on 50% cash.

* Big Players know where the stop is kept by the common mass and drag the market to that point to trap small players as happens most of the times.

* Never be anxious to earn. Most mistakes are committed only due to anxiety.

* Do not try to calculate loss/profit on daily basis. If one earns daily it's good, but must accept some loss at stops in a bad day and never feel sorry for that and concentrate on movement of market.

* Always trade with confidence and positive attitude.

* If you win 60% of your trades, you are a gainer at the end of the month.

* Hedge your delivery positions by buying put options if you are confident about market movement downward.

* Invest your gains from stock market in other assets at least 50% of the gains.

* Never take position in anticipation of a big move ahead either upwards or downwards. Hedge your position in such cases.

* Try to recognize the trend with the help of Index mover stocks like RIL, SBIN, ONGC, ICICIBANK, BHARTI, INFOSYSTCH etc.

* Always watch ATP(Average Traded Price) on your screen.

* Accept the fact that market is always right and smarter than the traders. Do not have the idea of beating the market. In fact, nobody has ever succeeded in doing so.

* Market gives chance for earning every day; therefore do not feel sorry that you missed a golden chance/opportunity. Rather try to find other opportunities.

Comments/views of friends are are welcome.

Thanks,

Deepa Acharya

N.B.The above is a reproduction of a post in Blue Eye's old forum for benefit of friends in this site. Edited and reposted.

For this message the author DEEPA ACHARYA has received thanks: 25
ashvin (Sat Nov 05, 2011 6:26 pm), BIRANCHI (Fri Nov 04, 2011 9:31 pm), GITARTHA (Tue Jul 19, 2011 6:25 am), manish midha (Sun Jul 24, 2011 7:17 pm), NIHAA (Sun Jun 19, 2011 5:44 pm), nilopra (Wed Jun 29, 2011 6:17 am), prgsh (Tue Jul 05, 2011 4:34 pm), roysou (Mon Dec 19, 2011 10:56 pm), seetharamank (Tue Mar 27, 2012 8:42 pm), SOMU (Sun Jun 19, 2011 10:14 pm) and 15 more users
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Re: FRIENDS, PLZ READ THIS BEFORE YOU TRADE

Postby rajnisht » Thu Sep 10, 2015 3:27 pm

- INDIAN MARKETS OPENED VERY LOW FOLLOWING THE WEAKNESS OF ASIAN MARKETS; 7650 IS THE IMMEDIATE SUPPORT LEVEL FOR NIFTY SPOT. US MARKETS TRADED WEAK YESTERDAY FOLLOWING THE TUESDAY'S RALLY. GRASIM INDS GOT APPROVAL OF MERGER WITH ADITYA BIRLA CHEMICALS FROM THE CCI (COMPETITION COMMISSION OF INDIA). NTPC SET TO RAISE Rs. 700 CRORE THORUGH TAX FREE NON-CONVERTIBLE BONDS. SHARES OF STEEL COMPANIES ARE IN FOCUS AS GOVERNMENT HAS INCREASED IMPORT DUTIES BY 20 PERCENT IN SOME OF THE IMPORTED STEEL PRODUCTS; GOVT HAS TAKEN THIS DECISION FOLLOWING THE RESEARCH REPORTS WHICH HAS SUGGESTED THAT THE LOCAL MANUFACTURER FACES UNFAIR COMPETITION FROM THEIR RIVALS IN CHINA AS CHINA EXPORTS SAME STEEL PRODUCTS AT LOW RATES BECAUSE OF THEIR DEVALUED CURRENCY.

- COMEX GOLD IS TRADING WEAK AND IS TRADING AROUND ITS IMMEDIATE SUPPORT LEVEL OF USD 1101; GOLD MIGHT STAY AT THIS LEVEL FOR A WHILE BUT MIGHT SEE FURTHER WEAKNESS IN NEAR FUTURE; NEXT CRUCIAL SUPPORT IS AT USD 1093. CRUDE IS RUNNING WEAK AND IS EXPECTED TO SEE THE LEVEL OF USD 42.5.
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