Intraday trading here are 10 Thumb Rules that you must remember before you start trading Intraday.
1. Never rush into a trade. Always reach the market at least 15-20 minutes in advance with your trading list in place.
2. Trade with a calm mind, maintain a sound balance between personal life and life in the commodity market; don’t let the two aspects interfere.
3. Don’t enter a trade if you are unsure of the trend (if prices will move up or down). Preferably start trading around 10.15 am (markets begin at 10.00 am every weekday; weekends are a holiday) to know the clear market direction.
4. Never risk more than 10 per cent of your trading capital in a single trade.
5. Over trading kills, never do over trading.
6. Remember that no one can predict the exact highs and exact lows. So never try to catch them.
7. Always maintain strict discipline in your trades. Remember to keep a strict stop loss and booking profits is a must (So that you know how much you can afford to lose).
8. Booking profits is very important and booking loss at the right time is even more important.
9. Never let a profit turn into a loss; always keep booking profits and raise your stop loss accordingly.
10. When in doubt the best thing to do is ‘Get Out’, and don’t ‘Get In’ when in doubt. Simply put, when in doubt prefer staying at home and enjoy the company of your loved ones.