How to Mentally PREPARE before starting Day trading:

 

People get attracted to stock markets because they are under the impression that this is where they can make a fast buck. In other words, they are attracted by the aspect of quick, big profits.

People come to stock market with only one objective and that is making money, forgetting all that is required for doing so successfully. They forget that it is there hard earned money and forget the mental torture that a person has to go through if it does not work out properly.

This casual attitude surprises me. When it comes to buying a mobile phone, the same people would thoroughly check the pros and cons of the device. But when it comes to stock markets, we only see the pros and not the cons. This is a recipe for disaster.

Therefore I believe that before you decide to enter the stock markets, you should consider these three factors:-

  1. Are you mentally prepared for stock market?
  2. Are you physically fit for the stock market?
  3. Are you financially fit for the stock market?
Investment:

Once you start investing, there are many indicators, charts and techniques that tell you what should be done next. There are various sites where you get daily calls but I would suggest you to rely only upon your information, knowledge and experience.

 Terms related to share market :-

Open, high, low, close, intraday, delivery, leverage, Japanese candlesticks, charts, indicators-{super trend, momentum, moving averages, MACD, stochastics, Bollinger bands, RSI }, heikin ashi chart, equity cash, margin trading, BTST,(t+1) settlement, (t+2) settlement, market capitalization, beta, bid price, offer price, dividends, EPS, face value, P/E etc..

As this stream is very vast, everything will be discussed here in detail context.

Following are the topics which will be discussed in my blog in coming future:-

  • how to trade,
  • which stock produces best results,
  • best broker,
  • when to invest,
  • how to choose the right stock for the day,
  • Which books to read and more about stock market…contact me…
Intraday Trading:

Intraday trading is one of the most risky segments in the market but with proper knowledge, technical analysis and your own strategies, you can definitely earn a decent amount of money from intraday trading with rigorous practice and experience.

Many people trade by the ‘I know it all Syndrome’ which is the worst thing. They trade just by intuition and inner voice without analysis. This could be a recipe for disaster.

It is not possible that you will earn only profits and incur no losses.

Every trader incurs losses in the market. Accept the losses and move ahead. Your aim should be to maximize profits and minimize losses.

Strict stop loss and trailing stop loss should be implemented to drastically minimize your losses.

It is not an easy rather uphill task. Not only knowledge but experience is what counts. Master the technique of decision making in the market and you will be successful.

It takes time, have patience. Don’t give up.