Hello traders, today I will tell you some best advice that you should follow during trading.
· Before trading you should be ready with all technical analysis like price action, indicators in the chart. You should use combination of indicators because using 1 or 2 indicators will not be enough to understand the trend of the market. I have explained the uses of various important indicators in my previous blogs.
· If you are making profit then mark your target and exit the trade if your target is achieved otherwise you will be greedy and will earn some less profit than you were having earlier. Always put a stoploss during trading so you will not make big loss. If your stoploss is hit then exit the trade. You can continue trading only if you are full confident with your analysis and then mark your new stoploss in the chart.
· Never revenge trading for your loss if you do that you can have even more loss than it was before.
· If you make enough profit then close your screen if you don’t do that you will think if I enter again, I will have some more profit but that’s wrong habit you can even suffer loss. Never do overtrading.
· If you have loss then don’t become sad learn more, do back testing, do paper and virtual trading because that was not your last day of trading.
· Always see other charts during trading of bank nifty or nifty. Because sometimes other charts can help you to predict the trend in bank nifty or nifty.
· Don’t look at your profit and loss screen during trading because if we see the loss, we become sad and think to exit the trade only do that if stoploss is hit then exit the trade but if you are full confident with your analysis then you can continue your trade until your new stoploss is hit. So, only see the screen when your target is going to achieve and you are planning to sell it with profit.
· If you are constantly making loss don’t do trading for at least 2-3 days. In 2-3 days, you can do back testing, paper and virtual trading, learn more about indicators, price action, technical analysis etc. and most important thing is to identify your mistake you have done during in previous trading and correct it on your next trading day.
· Don’t use full money during trading. If you have a large capital than trade with only 70-90% of your capital. If you have small capital then trade only with 80-90%. So, even you have lost your money during trading but some of the money is left which you can trade and recover your loss.
· Always follow risk management. Before trading calculate how much loss you can take in your capital and according to that buy CALL or PUT.
· Remember no one is fully perfect in trading even an experienced trader suffer loss. So, if you have made huge profit from trading don’t do trade every day because a day will come when you will have to suffer loss.
· If you have made huge profit from trading and have a large capital then use your nearly 50% of your profit money in investment of a company stock. So, even if you have loss in trading your 50% money is safe and is making profit.