Friends I have recently started trading . In my early days by newbie luck I made profit in some stocks but it didn't last for long. It took almost no time to washout my account due to some wrong trade. These trades which proved my decision wrong were not wrong trades actually.But the risk involved in it was very big.Since I started with a very small account. So I could not make it profitable . My stop loss hitted that eventually washout my money.
Now I am trading very cautiously I don't enter in any trade before analysing risk reward market sentiment and all. I hv learned through my mistakes . And still learning I am not saying that I am flawless person. But I am on the track of learning. And it is going very smooth. Here in this Article I will share my experience of trading as well as my set of rules which made me profitable . With the help of these rules I recovered my losses . And most important thing that I have learned a way to be profitable in the stock market.
1.my first focus was to not take any emotional decision during market hours.
in my early days I was very emotional and greedy . these two things made me very vernurable to make loses . I did make losses because of these two .
but now a days I make my trading very objective. no emotions only levels. I analyse stocks night before I actually trade them. Analysing market gives me all important levels of that particular stock. I note them on a diary. I usually analyse 3 -4 stocks every day. took levels jotted down on my diary.
I trade only when a stock follow my analysed levels I ignore that stock otherwise. I have pre set stop loss and target. that helps me in not being emotional during market hours.
2. Second thing I did was I log my trades in excelsheet this helps me analysing my behaviour in stock market. And it helps me to take better decision day by day . So I suggest you all to keep record all trades every day. This analysis keep you updated whether you doing good or need a chaNge in your strategy.
3.third is not go for a very big profit every day. there are days which gives you very good return in a single day. But never forget that it can be followed by loos making days. So don't chase bIg profits . Set a profit target for every day . And take risk according to your capital and your ability of trading. I am not against leverages but beginners should avoid it. If you are confident enough that you can use leverage in a better way than only you can go for leverage.
4.
Make trading a simple game. Don't make your strategies very complex. Complexity won't earn you anything. Follow simple trading system It will keep you calm .
5.
And very important you will never achieve great things in life if your learning is poor. To achieve great returns focus on learning . Youtube videos could be your best guide in starting. there are great books on trading and investing . read them and follow their e
advice . If you go with learner attitude sooner or later you will get great return from stock market. Here I am giving a book name Trading for living. You start reading this book if you are beginner. It will be beneficial to you.
.
Don't trade in very volatile market
Use India Vix index to know whether the market is volatile or not.
Market is supreme don't mess with it.
Go with the flow.
Trade in Market direction.You will never make profit trading against market direction. Means if market is green go for long . if market is red go for short.
If you are beginner open your trading account with discount broker like zerodha , upstox etc. Because if you choose full fledged broker like hdfc or mahindra kotak. these full fledged broker take bog brokerage and other charges in comparison to discount broker. So if you made profit in any given day your take-home profit will be large if you are trading with a discount broker.
In the beginning don't try to master any technical indicator. one thing I will suggest is just try to find our support and resistance of the stock which you want to trade. Focus on price action . Moving average acts as a crucial support or resistance in every stock. Try to use moving averages in your trade. It will keep your trading setup simple . Cause simplicity is great policy and it is applicable in life and in trading .
Start with a little capital that you are comfortable losing it. Cause in the beginning don't go with all of your savings . In case if you loose the amount should be that much that won't affect your monthly budget.
And if you are dong 12 hour job or 10 hour job I will suggest you to buy mutual fund unless you are sure to make extra efforts and work hard in learning how stock market behaves.
Nilesh Shah on indian economy
Here I am giving you a link of very powerful guide which is written by Bank nifty trader for absolute beginners with zero loss strategies Click here
Now I am trading very cautiously I don't enter in any trade before analysing risk reward market sentiment and all. I hv learned through my mistakes . And still learning I am not saying that I am flawless person. But I am on the track of learning. And it is going very smooth. Here in this Article I will share my experience of trading as well as my set of rules which made me profitable . With the help of these rules I recovered my losses . And most important thing that I have learned a way to be profitable in the stock market.
1.my first focus was to not take any emotional decision during market hours.
in my early days I was very emotional and greedy . these two things made me very vernurable to make loses . I did make losses because of these two .
but now a days I make my trading very objective. no emotions only levels. I analyse stocks night before I actually trade them. Analysing market gives me all important levels of that particular stock. I note them on a diary. I usually analyse 3 -4 stocks every day. took levels jotted down on my diary.
I trade only when a stock follow my analysed levels I ignore that stock otherwise. I have pre set stop loss and target. that helps me in not being emotional during market hours.
2. Second thing I did was I log my trades in excelsheet this helps me analysing my behaviour in stock market. And it helps me to take better decision day by day . So I suggest you all to keep record all trades every day. This analysis keep you updated whether you doing good or need a chaNge in your strategy.
3.third is not go for a very big profit every day. there are days which gives you very good return in a single day. But never forget that it can be followed by loos making days. So don't chase bIg profits . Set a profit target for every day . And take risk according to your capital and your ability of trading. I am not against leverages but beginners should avoid it. If you are confident enough that you can use leverage in a better way than only you can go for leverage.
4.
Make trading a simple game. Don't make your strategies very complex. Complexity won't earn you anything. Follow simple trading system It will keep you calm .
5.
And very important you will never achieve great things in life if your learning is poor. To achieve great returns focus on learning . Youtube videos could be your best guide in starting. there are great books on trading and investing . read them and follow their e
advice . If you go with learner attitude sooner or later you will get great return from stock market. Here I am giving a book name Trading for living. You start reading this book if you are beginner. It will be beneficial to you.
.
Don't trade in very volatile market
Use India Vix index to know whether the market is volatile or not.
Market is supreme don't mess with it.
Go with the flow.
Trade in Market direction.You will never make profit trading against market direction. Means if market is green go for long . if market is red go for short.
If you are beginner open your trading account with discount broker like zerodha , upstox etc. Because if you choose full fledged broker like hdfc or mahindra kotak. these full fledged broker take bog brokerage and other charges in comparison to discount broker. So if you made profit in any given day your take-home profit will be large if you are trading with a discount broker.
In the beginning don't try to master any technical indicator. one thing I will suggest is just try to find our support and resistance of the stock which you want to trade. Focus on price action . Moving average acts as a crucial support or resistance in every stock. Try to use moving averages in your trade. It will keep your trading setup simple . Cause simplicity is great policy and it is applicable in life and in trading .
Start with a little capital that you are comfortable losing it. Cause in the beginning don't go with all of your savings . In case if you loose the amount should be that much that won't affect your monthly budget.
And if you are dong 12 hour job or 10 hour job I will suggest you to buy mutual fund unless you are sure to make extra efforts and work hard in learning how stock market behaves.
Nilesh Shah on indian economy
Here I am giving you a link of very powerful guide which is written by Bank nifty trader for absolute beginners with zero loss strategies Click here