Best Trading Strategies for Day Trading in share market
- If you are new to stock market, invest only the amount that you can afford to lose.
- Select only few liquid stocks.
- If you are already holding the stock wait for the peak or bottom.
- Watch the Index Support / Resistance and general sentiments.
- Never challenge the market and do not be over enthusiastic.
- In a highly volatile market place stop loss orders after long or short trades
- When the market opens trade on a stock based on the previous day's movements, Partially or fully cover the trade within half an hour.
- When the market is about to close trade on a stock based on the days movements.
- In a bull market raising stocks will raise further. Wait for correction and buy.
- In a bear market falling stocks will fall further. Wait for up move and sell.
- Stocks rise or fall prior to announcement of results. Have a knowledge on this date which will help in making decisions.
- Rising or Falling Stocks which shrink in volume indicate that the run Is nearing final state. Watch for change in trend.
- If you think that you have made enough profit or loss stop trading.
Best Trading Strategies for Short or Long Term investments in stock market
- Strictly adhere to Stop loss.
- Before entering in to trade analyse stocks on the basis of Technical indicators - moving average, Oscillator, Trend line, Trend Channel & Patterns don't Trade against the trend.
- When people are selling be a buyer. When people are buying be a seller.
- Avoid purchase of stocks when market value of that stock crash.
- Stop loss & Exit to be decided before entering in to the trade.
- Do not have any sentimental attachment with any stock.
- Periodic Profit booking to be done by selling and re-purchase of stocks.
- Do not over trade. Trade only up to 50 % of your Trading capital.
- Do not trade on the basis of rumours.
- It is better to follow Monthly stop loss and stop loss or trade.
- Do not keep all your stock holdings in same sector,distribute your investment to various sectors ie. Diversification of investment to be done.
- Do not invest more than 10% value of your Trading capital in any single stock.
- Buy the stocks whenever there is some bad news and sell the stocks whenever there is good news.
