Understand the Economy
Learn Intraday Trading
If you are new to the day trading then you must be wondering which method I should follow, which software is best for day trading etc. In this process of gathering information and experiencing with new tools day traders used to lose maximum part of their money.In all my seminars and lectures I have taught proven wonderful day trading mathematical models. In this I am going to describe the simplest, no cost principle for the day traders. I will not recommend you to buy any software or tools to implement my principle.Only tool you need is a simple mathematical calculator. Most of the time day traders used to forget their finest experience in the stock market. I have pulled those finest experiences and prepared this course for you. This course is FREE to all.
I have devised this study into two parts in part one I will describe the basic principles of day trading and in part two I will describe few examples and give you few home work. You need to do some paper trade (virtual trade) to practice this principle.
Types of Day Trading:
Stoploss trading mechanism: In this principle trader initiate position with some stop loss in mind if the trade goes against the trader then trader exit the position with some acceptable loss.
Swing Trading Mechanism : In this principle trader initiate positions keeping in mind that if the trade goes against the view then trader will initiate an opposite leg trade upon achieving the stop loss. Say you have bought tata steel at 450 with stop loss 435. As a swing trader your view will be if tata steel will fall to 435 you will close your existing long position and re-enter fresh short position in same counter.
Decoupling Trading Mechanism: This principle is called advanced hedging principle. you can find more about this technique in my article on Introduction To Decoupling Method.
Many mentors say about discipline and trade objective. I would say that it is practically impossible to be a 100% disciplined trader.
However trade can have objective. I always say do not expect too much from market. Be objective and keep minimum exposure with the help of decoupling method or option hedging.