Do’s & Don’ts
- It seemingly looks to be the simplest and the most rewarding. But in intraday trading one has to be very fast and quick and have to be on your toes always, so there are certain rules which one has to keep in mind
- If index is in positive from yesterday and the commodity you are holding is in minus then it should be cut and if intraday trend of index is in buy then one should buy a commodity which is in plus.
- If index is in minus then one should look to short commodity which are minus and not commodities which are in plus.
- It is not necessary that a commodity which is weak today during intraday trading might be weak tomorrow also, simultaneously if a stock is strong today might not be strong tomorrow.
- If International markets have gone up overnight, the markets here in all profitability will open strong, so one should be quite careful when buying commodities as the general psychology of public is to buy when good news is there.
- Being a contrarians is very important while trading intraday.
- Stop Loss is a must while trading intraday.
- Always trade in very liquid commodities i.e. which have high volume because as entry and exit can be very fast in such commodities.
- Do paper trading before you actually start trading so that when start making paper profits, then shift to actual trading.
- Keep your volume constant e.g. if you trade in five lots of Crude Oil futures then trade in five lots only. This Position can be increased only when you are satisfied with your trading for a month. It should not be that one day you buy five lots and next day trade in ten lots and third day you get a loss and stop trading for two days.
- Fear and Greed are at maximum levels while trading intraday so always have less position when you are new to intraday trading as otherwise you will be mostly under tension.
– Make My Trade Research Team