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03 Oct 2015

As being a trader you need to understand why it can be that you enter a selected position, what is your individual specific reason for position entry, a better solution can't be "It looks like it is going up". You can't put down money using a gut feeling; you need to be motivated by a technical reason perfectly located at the chart that you are observing. Another factor that will influence your trading is volume. The average daily volume of a share that you choose to trade should be at minimum 1M shares. Be very cautious when risking your equity, make sure you have spent time paper trading, or maybe you will pay a lot of money in market tuition... which can be quite costly. nifty trading tip

Something more important that will have to be considered can be your personal workstation. Maintain work area clean, and uncluttered. A disorganized desktop will not enable you to think clearly, and will show to be distracting. You will need a good monitor setup (2-3 monitors minimum) allowing you to have ample real estate to look at charts, level 2, etc. You'll require high-speed Internet connection and a good direct access broker. It is a serious profession based on mathematics and market psychology, so act professional. In case you trade with a budget daytrading casino mentality, you are going to quickly gamble away all of your account.
free nifty trading tips

A Few Words About Charts

I had to spend a few months of experimenting to get my personal g-spot for my own personal chart setup. I'll offer up some tips on what you can best manage your individual charting.

 Keep it simple, and uncluttered. Have only the essential information displayed because you will spend a lot of time just looking forward to a healthy setup to provide itself. If you have an intricate window to look at with numerous flashing colours and numbers, you will get eyestrain.

 To reiterate for the first point, don't have too many technical indicators on your own charts, especially indicators that conflict signals.

 Have a minumum of one broad market chart and one sector chart, is he making new highs today when compared with yesterday? It is important to gauge the marketplace relative to the previous trading day's range.

 Have a period and sales window for your stock, is there a purchase or sell pressure?

When reading your Level 2 window utilize it primarily for order routing only. You can't always base an investing decision on what information the thing is there, because there is a great deal of bluffing and intentional manipulation that happens in Level 2. You should focus on the big picture in the market first and foremost, is it a red or green day? Would it be a volatile day or perhaps is it very choppy with deadly whipsaw like activity? After you have performed this initial diagnosis, you'll be able to use the individual chart patterns to recognize a profitable entry and exit point. A typical beginner mistake is just jumping in and out whenever where ever-an entry and exit point should be determined BEFORE you place the trade.

Read this book to learn more strategies that can significantly improve your trading profitability.

Ashbee A. Bakht is an international best-selling author who holds a qualification in psychology from Brock University, Canada and he attained his postgraduate education in minerals and mining with the prestigious Norman B. Keevil Institute of Mining Engineering, with the University of British Columbia, Canada. As a professional commodities trader and arbitrage specialist, Ashbee's strength are located in taking positions depending on economic forecasts of trends and looking out arbitrage opportunities. Ashbee concentrates on trading crude oil, gold, silver, as well as other base metals.


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