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Sunday 6 October 2013

How was your trading last week ?

Last week was a short week with 4 trading days. Personally,  I traded only for 2 days due to high volatility. In fact, Friday the markets where very volatile so that any trade would have hit stop loss either on the long or short side.

One important lesson which  I learned  - As a day trader you do not need to trade every day. A professional day trader waits patiently for a right trade, whereas an inexperienced trader chases stocks to trade. To earn profits consistently, you need to also practice to be in front of the terminal, but not do any trades.  I have seen many day and swing traders holding more than 10 open positions which can only be disastrous if market reverses suddenly. I strongly advocate lesser number of trades which are technically correct and provides the right risk to reward ratio. 

So few weekend thoughts:

1. Learn to control emotions, enter or exit a trade only if it is supported by technical analysis. 

2. Trade as less as possible, but more accurately. How do you ensure accuracy - follow a proven trading system. 

3. Do not be tempted to trade against the trend anticipating  a reversal. You can do that if chart patterns / analysis says so. But please follow a scientific method. 

4. Avoid trading on a heavy newsflow day. (Or trade after the market settles down). 

5. Avoid chasing hot tips and news flows to enter trades. Follow your own analysis and levels to enter trades. In the long run you will be more profitable than following someone else. 

Please go through our trading course to understand the important trading systems

- Opening Range Breakout 
- Intraday Trading System

Our readers traded on pre-market calls for 2 days and made a profit of close to 13, 000/- this week. 

Sep 30 - 5250/-
Oct 3 - 7875/-

Hope everyone benefited.

I will be soon back with trading ideas for next week. 



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