If you are following speculative trading strategy then...
1) Always buy at Strong Support (or bit riskier sell at breaking of such support with high volumes) and Sell at strong resistance (or bit riskier Buy at breaking of such Resistance with high volumes) (Support/Resistance should be legitimate and 4-6 weeks old only not more then that in present market scenario)...look at Chart and derive support and resistances... do not never ever buy/sell in between support/resistances prices if you are speculative trader...do not buy scrips if you think it is cheaper now without knowing if it has a support at that level and vice versa for selling it....otherwise follow the trend trending...
2) Look out for opportunities.....train your mind to understand that not every second of everyday you can trade any stock just because your mind thinks so...you have to have a solid opportunity for trading..just 50% chance of winning is actually loosing and no better then tossing a gambling coin...so do not gamble...I repeat..Look out for opportunities..there are 100s of opportunities there in the market..find it out do some real fruitfull hard work..!!
3) Write down Targets and Stop Losses (you can use Camarilla, Floor pivots, Fibonnaci numbers or Average True Price to do this...google it and learn this concepts)
3) Do not over trade (trade one or two lots only) - after calculating Stop Loss..calculate how much you can loose in worst case scenario (that is difference between your Buying/Selling prices Vs Stop Loss)....never ever allow your mind to loose beyond your SL...dont higher or lower your SLs and do not hold the positions in Hope...if it may not go your way you may loose the entire account...
5) Have patience...no one can earn money in Share Market very next minutes...dont jump out of the ship because there is a little storm...unless it is a big storm and your wise SL is hit..be in the ship..but have rightful SL and hold it close to your mind...
6) Win against..
- GREED (when your targets are achieved you still want to hold the position little more time thinking I will get more profit);
- FEAR (you have done your home work with ENRTY/EXIT levels but you do not enter the position at right time and even when yous SL is not hit you think now it's gone case let me square off and save few )
- DOUBT (is it really going to go my way or it seems it is going against me let me square off now so that i do not incur more losses)
- HOPE (when your SL is hit or target is hit you are still in trade or vice versa)
Ultimately Market (read Market Operators) plays with our intelligence..more we think it should be like this..more it tricks you...the guys running the show are having 15-20 years professional experience in the field..so keep that in mind...
Know your bettlefield as much as you can..have your weapons ready before entrying the bettlefield...train your mind to use your weapons to the perfection..and most importantly develope winning attitude..do not throw your money in coing tossing gambling (that is trades with less then 50% chances..reread point no 1-6 Answers are there)! :thumb:
