While every trade involves some degree of risk. Some says it’s
gambling, for some it’s an art, for some it is a game of luck. Every body loves
to make money. Traders come in the market with fancy dreams but due to some little
mistakes many traders loss their money (Some get bankrupt). I believe every
trader must have a rule or guideline for trading and must adhere to it. As per
my personal experience below is some strategy for successful trading.
1) Never Overtrade
Greed is the enemy of your profit and friend of your loss. Be
selective about the risks you take. Restrict your trades to the most profitable
position. Do your homework and reduces impulsive and emotional trades. Try to
make only 1-2 Positions at a time so you can concentrate and can get maximum
profit from it.
2) Trade with Trends
Trend can be categories as Lower, Upper and Sideway. Lower and
Upper trends are very easy, any one can understand it by seeing the graphs or
by watching the price. Sideway trend is a little bit confusing. One should
always Trade with trends. Always make is very clear that you are not making a
trade against the trend. Trend shows the mentality of the market and gives you
a clear picture of Trader Volume and their sentiment.
3) Always Trade with REAL
STOPLOSS
More than 90% traders lose their money because they don't follow
strict Stop Loss. Stop Loss must be their not only in your mind but in your
trading software also. One has to make a limit of profit and loss. If you are
entering in a trade just make your target profit/loss and exit from that
position.
4) Never Carry Loss
Making Position Overnight
It is a common tendency of trader that they think very much
about the loss making position compare to a profitable position. Many hold
their position for overnight even it is making loss in hope that next day it
will be converted in profit making position. Try to square off your position in
the same day instead of holding it. You can’t predict the market for next day.
5) Never take more than
2% Risk on Your Trading Capital
Market is always risky. Try to make your trade as less risky as
you can. Keep in mind your profit and loss. Don’t take more than 2% risk on
your Trading capital. The more you will lose the more you will be de-motivated
and side by side you will start losing your principal amount.
6) Never lose your
Principal Amount
Market always gives at least a chance to exit your
loss/profitable position. Always try to make profit in your trade. In case you
are losing try to exit in BEP (Break Even Point). You are not in loss till you
have your principal amount.
To know More about Trading or to Open a Trading Account (De-mat Account) you can contact me at : 07773012370 or write at : surendrapratapmourya@gmail.com
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