How About Intra Day Trading Stocks and Futures

How About Intra Day Trading Stocks and Futures

Just we get weekly salaries, weekly returns from stocks doesn't come seamlessly. It is too inconsistent due to various economic and stock market conditions. The general mood of the public is inconsistent at all times that keep on bringing new changes to the trading strategy. The mood, sentiment and other daily news factors play so much in the bourse that prediction becomes rather difficult.

The best of the traders do not predict the market, instead they try to move alongwith the market. This is a special skill that is acquired by trading instincts and continuous practice. While at the practice periods, management of money and risk to reward proportions should be given a lot of thought. Parting money to the tune of 10 per cent of the available equity is the best possible way to protect the equity.

A daily trader after making a seres of losses wins a few trades and winds up the day's trade to see he is not at loss. Typically he wil be trading only in 30 minutes or 60 minutes chart. If at all there is a loss, he will try to "pinch the bud" quickly to take up the next trade, to ensure loss is very low. To sum up, all the trades, positives and negatives and the bottom line "Net Profit" that shows around 0.15 per cent or somewhere thereabouts for the whole week. This is after putting in a lot of efforts and sitting near to the terminal for the whole week.

Take the instance of a Day Trader who follows the daily chart. He waits till the rate of the last 5 candles show an entry point for him and puts the stop loss exactly at the center point of the price action.Look at the example.

Price variation in last 5 candles is 500 pips, divide by 2 will be 250 pips at which point of time, we will book his loss from the rate of entry into trade. He will book his profit at 1:1.3 ratio at 325 pips (1.3 x 250). This exercise will take one day to four days to materialise. The pause of trade is necessary for the rates and price action to settle. Therefore, we give one trade a week and four trades a month. This method will work much better than the Intra Day trading pattern.

The underlying key is "Follow the system" allow the system to work for you, don't chip-chop the system. The system is designed to reduce your losses and improve your profits. Follow them, don't be stupid to outsmart the system, because you have already agreed to follow the system upfront. Don't ever play with what you had already planned. Planning and execution process is what scouts you discipline.

The comparative study between Intra Day and Day Trading at the end of the week:

Gain in Intra Day / week = 0.15% - Intra Week = 0.33 to 0.50 on similar guidelines. The most important advantage is, for the longer version, you don't sit near the terminal, you don't lose your cool, you are free to do other activity, you will take up the trades confidently, money management becomes easy, total trades are less, less brokerage and so on.

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Request the author to get the trade setup for weekly stock trading by sending a mail or through the Contact Form page in his website.

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