Don’t Trade Blind: 5 Prerequisites Every Day Trader Should Know

Introduction:-

Hey Hi, I am CS Komal Peshwani, a Company secretary qualified from Institute of Company Secretaries of India. It has been more than 4 years since I started investing in the stock market. Being a full-time salaried employee, it is not possible for me to read patterns, charts, trends that a day trader needs throughout the market hours.

Being professional, I have developed financial understanding by Reading different financial books and a book that I would recommend is “How to do Intra-Day Trading” By Ashwani Gujral.

This article focuses on prerequisites that a day trader needs to know before stepping into the deep ocean of stock market as an intra-day trader.

• Short-term Trading in Futures and Options is just for full-timers. Hard work and Talent will never be sufficient until you do analysis of trends, patterns and charts before putting in your hard-earned money. Always remember the quote: –

“Champions aren’t made in the gym. Champions are made from something they have deep inside them- a desire, a dream, a vision. They must have skill and will. But the will must be stronger than the skill.”

• Intra-day Traders need daily preparation: – Pre-market analysis is mandatory for intra-day traders every single day. Having knowledge of overnight developments, local as well as global, government policies, budget, business news helps you to how it will impact the market and contributes to the outcomes of trading session. Remember, it is suicidal to enter the trading ring without a plan.
• Post Market Analysis: – Post market analysis helps an individual to know what went wrong and what went right, and, in each situation, one should stay calm to develop new learning from the wrong things and adding successful strategies to trade in the market. Technical analysis of the whole day of index and scrips in which you trade will help you learn about risk management.
• Step on the Ladder one by one: – There is no overnight success. No one becomes a millionaire in a few days or a few weeks. It is not like a lottery system. One should climb the steps of the ladder one by one. The first focus should be on survival, i.e., you don’t wash out your entire trading capital. Then one must aim to close the month by being profitable. Remember, you need not earn profits every day. Closing the month with profits is important. Having “stop loss” in your trading system will help not help you protect your capital but will help you become success trader.
• Don’t try to drink the entire ocean: – Remember, you are your own master. Don’t try to do it all. Trade with your tried and successful strategies. If a chart pattern doesn’t support your trade, avoid it. Be selective and try to choose the best trades. You can only arrive at perfection through pressure, perspiration, persistence, practice and patience. There is no other way.

Conclusion: – Hey! Success doesn’t come an easy way. You need to show up every day and stay flexible enough to shift gears through sudden and sharp turns that life throws on you. You need to live in present movement having a positive attitude and sharp focus to manage your trade and enter and exit accurately. Dedication, discipline and decision-making ability are the keys to unlock your potential to become an intra- day trader. Rest is practice, practice and practice before you enter the real trading ring.