Stock market day trading is like handling a sharp knife. If we are not careful then the result will be panic. The following are the tips for the beginners to day trade successfully. These are from my own experiences and it is meant for learning purpose only.
1. Never ever take a position. Profit or loss, try to book it on the same day.
2. When you incur loss in your first trade then stop trading for the rest of the day.
3. Follow charts and Technical Analysis only and never, ever follow TV, Tips or Chat service.
4. Do not over trade and do not trade with borrowed money.
5. Stop loss is very important to protect your capital.
6. Do not expect market to trade as per your wish rather expect the unexpected from the market.
7. If any one single formula can bring out success, then many of the traders would now be a millionaire.
8. If you are recurring loss for more than three days then stop trading and analyze for failure and if needed can attend a technical session.
9. Never use margin fund from brokerage as they may ruin your capital in the long run.
10. Try to control your greed and fear and don’t be overconfident about the market and be humble before it.
11. Remember patience is essential for success and here your money is in stake and hence say no to short cuts.
12. Do not trade against the trend and always keep it in mind that trend is your friend.
13. Aim for small profits and let it accumulate in to big profit over a period of time.
14. Try to cut your loss and let the capital grow.
15. During Gap up or Gap down utilize the reversal technique and earn money.