“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." - Warren E. Buffett

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Monday, October 22, 2007

Some points to ponder in day trading

Some points to ponder in day trading

Generally intraday or day trading means - you should buy low and sell high,
or you should sell high and buy low this is basic factor of daytrading
to make good money.
But in reality almost all of them trade in a hasty way in day trading and lose money
instead of earning, there are two important factors you should possess to be a successful
day trader, 1.Discipline, you should trade when you find the winds are favour for you
and if you feel that is a good trade rather than becoming a trader of compulsion, when
if you feel it is favouring as you wish there is no need for you to go to the market at all.
2.Cut your losses - this is the most important factor that most often offered as advice
to all traders in all type of trading and the most neglected one on the otherhand, unless
and until you learn to cut your losses to as much as possible the profits you are going
to get is less.
Develop your knowledge of markets by going through lots of newspapers, articles, reports,
experts reviews, and other resources and most of all make a habbit to watch the market.
As for as tips are concerned it cannot be assured because to give the tip what sources
the tipper had analysed and all we dont know and more over no tipper in the world will give
you 100% assurance about his tip, so , it is advisible after you receive a tip you do the ground
job and a small research for yourself to find out the worth of the tip before investing.

Trading market has got two feelings 1. Greed 2. Fear, you trade with greed and quit with fear
but if you trade in the reverse, that will give you some good results ie., trade when others fear
and quit when others are greedy.