At the outset I would like to thank all the people who have sent their appreciation for my recommendations and also to those who have been kind enough to inform me about the downfalls.
I have been a day trader for almost 4 years and have been accumulating small amounts of profits daily. I am not sure on what days I trade but the days I trade is usually with a small profit.
As u all know that market can have only three types of movements; bullish,bearish,and sideways. There is nothing other than this can happen to the market.
In either the bullish or bearish days the market either gaps up or gaps down or it may go up and come down or it can go down and come back up or rebound.
These are my fundamentals of day trading. On a day like today when there was a gap up opening of almost greater than 3% there is little scope for either going long or short because it is very difficult to judge the movement of a stock for a short time frame of a day. Hence I would like to be very very choosy about my stocks.
If it is a normal day that is there are no gap ups or gap downs then it is fairly easy to trade technically because u would know the levels where u can enter the stock and place a stop loss and exit when ur profit is achieved.
I always trade in F and O because of the fact that there are some stocks which are in the multiples of either 500 or above and a Rs.2 movement in such stocks would give me a profit of Rs.1000 which is sufficent without much risk.
People always say that long term investing in stocks is the best way of making money. I do support that theory, but when I started trading over so many years I have made couple of observations which I would like to share with you all.
I would do so in the course of next few days.