Basic Trading Rules
- Day Traders should Use Limited Exposure provided by your brokerage, which will help to limit your losses. Investors should never use the Exposure unless ready to pay whatever the exposure used with in 2 Days.
- Do not take un-necessary delivery unless you are in a profit of more than 2%.
- Keep strict stop-loss for all trades, don't put stop-loss orders, better monitor and manually exit the trade if stop-loss hits. Most of the time stop-loss orders get hit and market can bounce back.
- Book profits when ever you get a chance or trailing stop-loss is must if the trade is in profit.
- Short term traders must try to quit the market everyday after making some good profits, and should closely follow the future nifty levels provided daily.
- Never trade what your heart says, trade only what your mind says and what is there in front of you on the screen.
- Never trade any stock in panic or based on unwanted news or rumors.
- Never try to trade in any stock which is trading abnormally. Most important is never try to catch a flying stock without any technical knowledge, whether it is in up side or down side.
- Try to Book profit or Short Sell when ever the Market is in higher side and near a strong resistance zone. (e.g: Sell any stock that was near our 3rd Target of a Buy call with stop loss of 1% above)
- Try to Buy when ever the Market is in the lower side and near a strong support zone. (e.g: Buy any stock that was near our 3rd Target of a Sell call with stop loss of 1%
