Trading rules

Trading Rules:

Hi,

Here we are providing basic trading rules which must follow to end our day in profit. These are basic trading rules. Already you are aware. But lot of times we forget and end in losses. These rules are mistakes of some of my subscribers.

1. Don’t trade blindly. Some times we trade without any news we trade blindly by thinking it will go up/ down. When u r buying or selling, you should answer why we are buying/selling.
2. Market will never move depend upon what you say. We should buy/sell depend upon market move.
3. Don’t try to trade always. Wait for correct moment and for correct chance. Enter and exit in correct time. Don’t addict to market. Some guys always want to keep positions. If there is no position they feel boar. But this is not correct.
4. Don’t keep all your money in one position. Divide your capital money and keep in different calls.
5. Strictly follow advisors advice. Enter, exit and SL. Follow levels correctly. Enter means enter in that level. If asked to book profit book profit at that level. If asked to exit any cost means you should exit. If SL hit you should close your position. You should follow this strictly. Otherwise you will end with huge losses.
6.  Always book profit in 25-50-25 percentage levels.

 For ex: Buy nifty 5000 ce@100.  Target:130 SL:90

Enter around 98 to102 level.

Book 25% profit@120

Book 50% profit@ 125

Book 25% profit above 130.

7. Never wait for exact target figure. Book around target figure. Ex: In above call our target 130. So book profit 128 to 132 levels.
8.  Always buy and sell in points. When you are buying in above order keep buy order like 100.10, 100.60 etc. Don’t keep exact 100. In sell also same keep sell order like 128.90, 129.40 etc. don’t keep 130. Because at that level lot of people kept to buy/sell. So we have to keep in .30 etc formats always. Some times we loose money in points.
9. When placing buy order check Ask price(means selling rate) and place order near to that. When placing sell order check Bid price(means buying rate) and place order near to that. LTP is Last Trading price.
10. Check buyer’s volume and seller’s volume. Depend upon that you can understand how much demand for that scrip.
11. Don’t enter lately in call. Enter and exit in correct time depend upon call. Be fast if you are trading with F&O.s
12. Don’t enter again in same call after call closed. Suppose after closing above call if again price came down to 105 like some guys will reenter again. They say again it’s in low that’s why I want to buy. But this is not correct. Call closed means closed. Don’t enter again.
13. In options they don’t have low or high prices. Some guys will buy because its in low. But don’t think like that and don’t enter. There are no low and high prices. We will get that prices depending upon call.
14. Buy specified scrip instrument: Don’t try to buy another instrument. For ex if we gave buy nifty ce of 5000 then some guys will buy 5200 ce. But some instruments will move fast. Some instrument doesn’t contain that much volume. So strict to that instrument only. If u doesn’t have that much money then buy less quantity.
15. Some times we are not available because of any technical issues or any other problems. At that time don’t wait for our calls. Just book profits at your comfort level.
16. Follow news and discuss with good analysts.
17. In F&O always note expiry date and holidays, follow your trades depending upon that.
18. Activate call&trade service: When you’re trading if terminal not available keeps your call&trade numbers. Some times in short time huge move can occur in market.
19. Don’t follow rumors blindly. Try to validate rumors with good service providers.
20. Don’t invest money by borrowing for huge interest rates. When you taking risky calls just use money from your trading profits not from capital.
21. Choose correct broker who is providing good service. You can ask/demand for less brokerage. For F&O ask for less brokerage.

I will add some more rules further. Please follow these rules strictly and remember always. Your comments and feedback most welcome. We are requesting to add some rules from your side via comments depend upon your experience. We will add same rules here.

Thanks

Niftysiri team