Important Principles to be Follow by Day Traders
Important principles to be follow by day traders
Before starting you stock market trading you should be well aware of all the current news of financial market and if possible note down the breaking news or effective news and its related company and keep watch on that share and trade accordingly on that day.
Never invest all your money in same sector this method is called as diversification of shares. This will protect your money from downtrends of any particular sector as you can make money from other sector. There are various sectors like IT, Pharmacy, Banking, Steel, Petrol and Oil, construction and infrastructure, auto etc.
Avoid common day trading mistakes Lack of a Trading Plan, Failure to Control Emotions, Failure to Accept and Limit Losses, Lack of Commitment, Over-Trading
Day trading-Buying and selling of shares on daily basis is called day trading this is also called as Intra day trading. Whatever you buy today you have to sell it today OR whatever you sell today you have to buy it today and very importantly during market hours that is 9.55 am to 3.30 pm (Indian time).
Why it is required to practice day trading before starting actual day trading?
It's important to do practice or paper trading before you starts actual trading. Following are the few reasons,
1) Very importantly you will come to know how to place buy/sell orders, and will become familiar and perfect about using your trading system.
2) You will gain confidence in yourself.
3) The fear of trading will vanish. It is very important to keep fear away while doing day trading.
4) You will become active to enter and exit the trade. It's vital important that you must be pretty fast to enter and exit the trade (i.e. open positions).
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