How to become a day trader in india
Whatever may bethe strategy it is a must to exit a losing trade. Every time no one is right all the time. Trading or Investment, both require different set of skills, mental attitude, and divergent rules. In order to be best in the class, one can therefore either be a Trader or an Investor.
The important decision making points wherein strategy differs are Stop Loss or hold on, long term or short term, analyzing price or analyzing value, to follow the market or to predict are some of the contrasting and opposite action points which needs to be applied to either investing or trading to the exclusion of each other. Markets are not one way up, after bull market, bear market is going to follow, so one should not be biased towards only long trades, selling short should also be done with the same ease.
By refusing to sell short one forgoes huge opportunity to make money when the markets are in bear zone. Always remember, money can be made in 2 ways a. Buying Low and Selling High! Selling High and Buying Low! The hardest thing in the financial markets is the ability to consistently execute the plan with the iron fist discipline, but which rarely happens and that is why results are so poor. It is said majority of the people do not make money, because people lack discipline. Whoever does it has the riches.
Trading and Investing are essentially interlinked with human emotions. It the human being that makes the decision but the emotions act as a gatekeeper which filters out decisions. Any money making skills has to be self acquired , no one can forever depend on others, that they will make money for them.
Similarly by depending on forecasters one constantly postpones efforts to self learn the art of making money through hard work and self study. There is no substitute for self acquired knowledge and experience. You will have to write your own exam in the markets. No amount of copying, cheating will help you ace the exam! The economics of profit is simple, reduce costs, profits will automatically increase, other things remaining same. The flat fees of Rs. This may seem irrational but it is possible because of advent of technology, businesses are now becoming digital driving down their cost of operations dramatically.
The flat fee brokers like SAMCO are just passing on the benefits of cost reduction at their end which every trader and investor must avail off in order to reduce costs and increase profits dramatically.
It is far more difficult to swim against the flow of the river, but very easy to flow with it. Similarly once the phase of the market is identified bull or bear, then one should trade or invest in that direction. Also, it is not necessary to trade compulsively all the time. More trading doesn't mean more return. In fact, there goes a saying by Mr. Warren Buffett, "As investor motion increases, return decreases".
Sometimes if there is no clear trend in the markets, it might be better to be a spectator than be a compulsory speculator. Like many things in life, simple and uncomplicated things are more effective, similarly in trading or investing, the strategy should be simple and easily understood. The rules of entry exit, the risk management policies, discipline to stick to the plan and the ability to control emotions are the key to success.
There is no other rocket science to success in the markets. We'd like to close with a Peter Lynch Quote - "Everyone has the brain power to follow the stock markets. If you made it through 5th Standard Math, You can do it.
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Written from the perspective of an experienced trade, this book centres on technical analysis and also offers some invaluable money management lessons. It initially centres on charts, patterns, and indicators.
You also get the benefit of hearing from interviews with experienced traders, hopefully enabling you to avoid any of the pitfalls they fell down at. Plus, at less than pages this book is an easily digestible read for the aspiring trader. This book is less of a guide and more information on every day trading topic under the sun.
This all makes it one of the best books on trading for beginners. They give you the platform you need to start, as well as somewhere you can turn to for answers as you get going. Remember, good day trading books for beginners keep it straightforward. They walk you through the entire process, from choosing a stock and strategy, to psychology and risk management.
For those looking for more detailed books that offer in-depth technical analysis, advanced strategies, and comprehensive information on all things day trading, there are a number of books you can turn to.
Below we have collated the top 10 books, taking into account reviews, ease of use and comprehensiveness. This book centres on the notion of only making trades when the odds are in your favour, so it delves into how you set up your trades, and what to look for to know exactly what to trade and how much. The author calls on years of successful experience in the markets and you can benefit from his trial and error approach to avoid future mistakes yourself. Whilst many books sing about the potential riches, Josh DiPetrio emphasises day trading is not a get rich quick scheme.
His writing is easy to follow and you can tell he genuinely wants to make you aware of the dangers, and advise you on how to manage them. This is one of the top books because there is so much detailed instruction on how to set up trades. He leaves no stone unturned as he breaks down numerous strategies and different markets. One of the best selling day trading books, you get to benefit from the experience of one of the most highly regarded analysts in the forex world.
A lot of good books focus on technical analysis, strategy and risk management, but not so many focus on the complexities of trading psychology. The book details why not yielding to your emotions is harder than it sounds and offers you a multitude of tips for keeping calm and getting in the right headspace. The author focuses on market philosophy and delves into his own trading psychology. The only thing to point out is that this book was written during the highly volatile period of the dotcom boom, so some information may be outdated.
If you want strategies you can take from the book and apply with ease then this is a good choice. You get a number of detailed strategies that cover entry and exit points, charts to use, patterns to identify, plus a number of other telling indicators.
This book gets glowing reviews and is written in an engaging way, giving it appeal to a wide audience. The book explains why most strategies such as scalping struggle to overcome high intraday costs and fees. This is a self-proclaimed step by step guide, taking a complex system and making it easy to follow. The success of this book comes from the clear instructions you get around entry and exit rules, how to capitalise on small intraday trends, plus advice on the software you do and do not need.