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Do’s And Dont’s For Intraday Traders

This article was posted on Jun 11, 2008

If index is in minus then one should look to short stocks which are minus and not stocks which are in plus.

It is not necessary that a stock which is weak today during intraday trading might be weak tomorrow also, simultaneously if a stock is strong today might not be strong tomorrow

Being a contrarians is very important while trading intraday.

If index is in positive from yesterday and the share you are holding is in minus then it should be cut and if intraday trend of index is in buy then one should buy a stock in which is in plus.

If US Markets have gone up overnight, the markets here in all probability will open strong, so one should be quite careful when buying stocks as the general psychology of public is to buy when good news is there.

Stop loss is a must while trading intraday.

Always trade in very liquid stocks i.e. which have very high volume because as entry and exit can be very fast in such stocks.

Keep your volume constant e.g.: if you trade in five lots of nifty future then trade in five lots only. This position can be increased only when you are satisfied with your trading for a month. It should not be that one day you buy five lots and next day you trade in ten lots and third day you get a loss and stop trading for two days.

Do paper trading before you actually start trading so that when you start making paper profits, then shift to actual trading.

Fear and Greed are at maximum levels while trading intraday so always have less position when you are new to intraday trading as otherwise you will be mostly under tension.

22 Responses

Comment pages: 12Show all

  1. VIJU Says:
    August 15th, 2009
    Posted at: 1:54 am

    Yah! Its very true. As a engineering graduate for me it took a while to understand about the terms. Thanks for the Do's and Dont's

  2. PRITI Says:
    August 17th, 2009
    Posted at: 1:42 pm

    thanks lot for this link

  3. manoj yadav Says:
    January 6th, 2010
    Posted at: 12:18 am

    hi cb

  4. CB Says:
    January 6th, 2010
    Posted at: 12:22 am

    Hi manoj yadav

  5. Care Says:
    March 23rd, 2010
    Posted at: 11:16 pm

    How very well written !! wish I'd read this earlier ...This site is full of surprises . It's like entering/discovering a new room in a mansion .And yet again I have to write ..yup !! I do sure agree.. ...' Fear and Greed are at maximum levels while trading intraday ' &
    ' third day you get a loss and stop trading for two days.'..Thanks a lot.

  6. VIKRANT Says:
    November 26th, 2010
    Posted at: 1:34 pm

    Namaskar CB ji,

    i have bought resurge mines when it was 3.40 then at 2.40 and today at 1.40 what is the future opf the company i can wait for two years , what is your opinion about zicom is it a good stock for investment purpose fir two years i am tracking this stock since march 10 it is gooing downwards only

    regards vikrant

Comment pages:12Show all

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