I will be very thankfull to someone who gives me advice as I have already lost lot of money this days. At present I have short sell Niftyfut.
Definitions time folks:
Savings – reserve funds invested in a safe vehicle to protect ones assets and receive a small return in exchange for giving up current purchasing power.
Investing – putting capital at calculated risk in order to achieve higher returns.
Trading – Speculating on short term movements of securities prices, involves high levels of personal risks but provides benefits of providing extra liquidity & effecientacy to securities market.
Now professional traders, a) have the financial ability to withstand prolonged periods of losses, b) understand there is no "perfect" method, and c) even if they had found something even bordering on effective, wouldn't distribute it freely as it would dilute the efficacy of their method (And with the current state of the mortgage markets we're learning just how falliable even those "propietary" methods can be).
Sounds like you need to back up. Start building your savings, then your investments. After that, if you must, you can start a trading account. But, honestly I've made far more in two years of investing, than I did in 10 years of trading. (Simple math lesson one, if a stock drops 50%, from that point it has to go up 100% for you to break even — meaning minimize your loses is more vital than maximizing your gains).
For the beginners which one will be better… Intra-day trading or Long term trading..??
But you also need to ask yourself how much could you lose.
If you ignore the risks you'll be taking you won't last too much time on the market.
About the intraday or long term trading: basically the best trading strategy is the one that fits your personality. But keep in mind that for short term trading you would need much more than Rs5000.
Good luck on your trading
Seriously, that is how most stock tips work – so be very careful.
PS – MSTR is a very good stock, I bought at $108 in October, and it has hit $130 several times since then.
If you're talking only a few a days, then use short term EMA. EMA is more sensitive to price changes.
The strategy that I am working on is to pick companies with good fundementals, but then use technical analysis to do the short term trading. I don't want to go for the long term investment becuase I don't like how the stock market has been behaving lately (mostly a down trend).
Yes you are right, I meant swing trading and not day trading. I intend to invest in companies with good fundementals, becuase I don't want to take the risk of seeing my money wiped out!.
For starters you need to learn how to read candlestick charts and understand how to use moving averages.
You can not be a true "day trader" unless you keep at least $25,000 in your brokerage account. This is why you will find more swing traders than day traders.
If there was a "best time" to trade… wouldn't all the professionals be doing it. I do have some rules for myself;
I never buy/sell before 10:00PM EDT
If a stock reaches its high 5 minutes before 4:00PM, I'll buy.
I never trade during the hours of 11:30AM-1:30PM (lunch)
BUT…. these rules mean nothing without a ton of information I or anyone here can give you.
Here's some places to start;
http://www.alphatrends.net/ (best "sum up" of daily activity on the web).
http://www.tradingwithtk.com/ (good teacher, dangerous stocks).
http://streamer.thinkorswim.com:8000/shadowtrader.m3u
(great market comentary during the day, 9:15AM – 4:00PM EDT).
ya@eriestocktrader.com
1)successful day trading
2)mid term trading
3)long term trading.
if u have are thinking about earning some money out of your investment u need to think and act smartly..by investing for midterm and long term…all the transactions(buying and selling that u do must result in a positive long term investment…i mean your short term trading must ensure that your long term investment goals are achieved.for this remember these things carefully while trading …
when it comes to making profit..it depends on ones strategy of investing…
people can make good money if they invest properly …and if ones foolish and more greedy he might loose out every thing…things always happen in extremes in stock markets…
remember this one thing before investing….
dont hurry ur self…think about the stock fundamentals(like its financials like balance sheet or in simpler terms the profits that it made during recent times..its managing style..people in the business…competetors industry as whole etc)
when once u feel that the stock is fundamentally good..then u move on to technical aspects like how is the stock performing in recent times..take the history of atleast past 3 months…and then invest if u feel thats good..u can get the recommendations in investment channels like CNBC watch it carefully during the market hours.
when u invest u have to watch the price carefully..keep a target level..say fro example u bought it at 100..keep a target for that stock say 130…sell it at that level..i dont recommend u to sell it entirely(in bullish market when the market is goin up..sell a partial amount of your holding..and when the market is falling down..book the entire profit by selling it…)
then u can pick another stock…
even while buying the stock its necessary for u to pick up the stock when ever the market is down..it has to be systematic..by this u can average out ur buying price…by doing this u can average the price..if u see n compare the total market movement..which will be more profitable….
i hope ive given u sufficient information to start off..feel free to ask if anythin else is necessary…
Happy investing…!!!!!!
