Intraday successful strategy
Firstly, We need to understand intraday trading, which
means traders would enter and exit from the trading position on the same day.
More likely, day traders attracted by substantial profit. One study suggests
that day trading is an inherent significant risk than other trading methods.
Very often, day traders only get the frustration frequently. The day the
trader's purpose is wanting to make more money by small investment, it is one
kind of greed. Although, until I know traders can get success if they follow
the trading discipline and strategy, so, I would like to give a few suggestions
for these all I got from my past trading experience. Even though, right now, I
do not make any day trading. Perhaps if you decide to do day trading and you
have got more confidence in there. Let's start immediately. Here are given
below that trading idea, though, I am not going to recommend any stock for you.
Trading discipline
Generally, a distraction mind will restrict to take a
concrete decision. Decision making is not a science that depends on how to
manage your emotions. In terms of the stock market having high fluctuation, no
one can predict what will happen either today or tomorrow. The traders only can
analyze past actions. Trading discipline is not the strategy, which suggests you
must follow the strategy and apply your trading plan. Some times the market
circumstances will change suddenly; at this point, traders would not use the
previous day's plan. In this situation, the trader who enters into the
unrelated position. As a result, trading failure and if it is persisting, later it will have a severe effect.
Trading discipline is not providing the idea, and how
to select the stock, however, it gives the idea how to properly execute your
trading plan, when you involve in trading and when you want to take action and
even when you want to stay away from the market.
Most of the day, traders only focus on the strategy,
and they are thinking about the stock market information, above these all most
important even though that does not only get the trading success.
The first thing is trader should craft the framework
about their trading plan execution, then they wan to follow through that in the
trading career. A Tarder asks some questions himself.
If the market when goes against our trading plan, as a
trader, what should I do?
Where are the exact trading entry point and exit,
suppose the specific stock does not meet that exact point, should I abandon the
trading plan or mat enter at any one point?
The trader is
anticipating if the market might move in the opposite direction against the
typical trend. In this situation, should the trader take a position against the
bias?
When the trader relies on the specific stock move in
one direction, should traders use tremendous exposure for the solid bet?
By asking these questions yourself, you can certainly
understand the risk and reward. First, define the trading discipline, and money
management also does significantly contributes to trading success.
Money management
It is similar to financial literacy. Simply put, how
much money you have? Hou many losses can you tolerate? How much money may input
in single trading?
Probably, most of the traders do not have ideas about
these questions because of the lack of knowledge in money management and how to
works money. Money is a very, very powerful tool. If you handle wisely this
tool, it will lead to the success path unless it will lead to failure and
frustration.
Money management does not only counting your money and
measure how much loss and profit. How effectively are you going to reduce your
trading risk? And when spot the lucrative opportunity, can you monetize your
idea with proper money management?
The legend trader, William o Neil, was applying
pyramid trading strategy in their trading life.
Pyramid trading is slowly adding position when stock move as expected
direction. The traders would not put on all money simultaneously. The trader
will put money into three or four parts.
In the first part, a trader will input 30 percent of the total amount
If the stock perhaps hit the stop-loss, it will not
make a significant loss, because, the trader would have invested only 30
percent of the money.
The next pyramid level, if the stock, when move
substantial-high, the first part of the capital has earned some profit, while
the trader will input another 30 percent money. Now, on an average basis, the
stock's average price will be the upper hand. So, the trader may modify their
stop loss amount. Because already stock cross beyond the danger zone.
The main advantage of pyramid trading, the stock when
moving on the expected direction, a trader will be adding the position, and if
not, he will exit from the position in a small loss. Perhaps, a stock if move
the right direction who will get huge profit. That means low risk, but enormous
benefit.
Day trading strategy
The strategy like a guideline, which lightening up
your trading mistakes and errors. So, the strategic player will always win the
stock game. If he gets the failure, he would not worry about failure because he
is following the rigid trading strategy. Trading discipline control human
emotions, but the trading strategy is a systematic trading execution. That
means, the trader should act as robotic, he should not affect by an external
factor and natural human emotions.
The trading strategy taught us where to set up an
entry, exit, and stop-loss.
You should have predetermined your loss that should
not go beyond around 2 percent of your principal investment.
In terms of the stock market is functioning by many
factors. Ordinary traders do not focus on all things, grab one or two
strategies which one is you can understand easily. During the day trading, the
technical chart shows the trend of the stock, so; the traders should grow
technical chart reading capability. By getting the technical analysis
knowledge, the readers can recognize the sudden changes in the market direction
or individual stock immediately.
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