Rule #2 - Don't form new opinions during trading hours

zazu

zazu

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Decide upon a basic course of action, then don't let the ups and downs during the day upset your game play. Decisions made during the trading day based upon price move or a news item are usually disastrous.

Successful traders prefer to formulate a basic opinion before the market opens, then look for the proper time to execute a decision that has been made apart from the emotion of the current market.

When a trader completely changes his direction during the trading day, it can confuse him and may result in generating lots of commissions with little profit.

Cheers.

amateur

amateur

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is trading is good?,i have the system.but i dont trade in day

zazu

zazu

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@ amateur
You should answer that question on your own. If you think you are skilled to do so, you should go ahead. And if you think you are not good at it, you should keep away.

The same rule can be applied to investing as well. When you decide to invest in a share after doing all the necessary studies you should go ahead with it without wondering about the days market sentiments.

Cheers

Antonym

Antonym

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@zazu: You must be an investor - like me, not a trader. Therefore, I am giving you a positive rep. What you are saying is valid for people like you and me.

But there was a time when I used to be a day trader. Traders operate differently, taking advantage of intra-day opportunities as they emerge - buying on weakness and selling on strength. Emerging business news on Reuters can be a trader's best 'friend'.

Investors and traders follow different rules... just as test cricket and T20 are different games.

That probably explains why you have received positive and negative feedback.

StocksWatch

StocksWatch

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@ zazu, what you say is generally OK but cannot be regarded as a rule.

As you are talking about the daily decisions, I believe your reference is to day trading as opposed to investment.

In your rule you suggest that trading decisions on a day are to be taken before the market opens. Also you suggest not to let the ups and downs during the day to upset the game plan.

Can you explain if someone observes that one of the shares in his portfolio has increased on the day more than 50%, isn't it prudent for him to sell and book his profit as the on the following day it can come down by the same margin?

In my view, it is difficult to set rules in this game. Investing or trading shares is an art that you will have to master with the knowledge and experience you gather.

zazu

zazu

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@ Antonym
Yes mate i am an investor. I want to learn more about Day Trading, because i believe that KNOWING something is not harmful. Hope to learn from you more as we get older.

zazu

zazu

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@ StocksWatch
When I put it up as "Rule" it is "GUIDELINES" for individual like me who are new to Capital Market, Not for individual who think that they know everything.

"Can you explain if someone observes that one of the shares in his portfolio has increased on the day more than 50%, isn't it prudent for him to sell and book his profit as the on the following day it can come down by the same margin?"

Please read the sentence again, you say "IT CAN COME DOWN" how sure are you that it will come down? Are you not misguiding starters like me that IF a share increases by 50% in a day, that it is bound to come down? What if does not will YOU take responsibility?

Now you go ahead an give a - rep. I am waiting for it. Make me famous.

StocksWatch

StocksWatch

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zazu wrote:@ StocksWatch
When I put it up as "Rule" it is "GUIDELINES" for individual like me who are new to Capital Market, Not for individual who think that they know everything.

"Can you explain if someone observes that one of the shares in his portfolio has increased on the day more than 50%, isn't it prudent for him to sell and book his profit as the on the following day it can come down by the same margin?"

Please read the sentence again, you say "IT CAN COME DOWN" how sure are you that it will come down? Are you not misguiding starters like me that IF a share increases by 50% in a day, that it is bound to come down? What if does not will YOU take responsibility?

Now you go ahead an give a - rep. I am waiting for it. Make me famous.

Slow down buddy...Yes it actually can happen...when the price of a share increases without a valid reason, it is bound to decline. It actually happend in the case of SING last week, as you yourself did experience, is n't it?

If you wanna impose rules upon you, it is up to you.

mark

mark

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http://forum.srilankaequity.com/t2611-trading-of-shares#17328

Smile

...zazu you don't deserve minus reps for this posts.... Smile

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Rule #2 - Don't form new opinions during trading hours

1 Rule #2 - Don't form new opinions during trading hours Sat Apr 09, 2011 11:05 am

zazu

2 Re: Rule #2 - Don't form new opinions during trading hours Sat Apr 09, 2011 1:20 pm

amateur

3 Re: Rule #2 - Don't form new opinions during trading hours Sat Apr 09, 2011 7:00 pm

zazu

4 Re: Rule #2 - Don't form new opinions during trading hours Sun Apr 10, 2011 1:14 am

Antonym

5 Re: Rule #2 - Don't form new opinions during trading hours Sun Apr 10, 2011 9:58 am

StocksWatch

6 Re: Rule #2 - Don't form new opinions during trading hours Sun Apr 10, 2011 1:42 pm

zazu

7 Re: Rule #2 - Don't form new opinions during trading hours Sun Apr 10, 2011 1:51 pm

zazu

8 Re: Rule #2 - Don't form new opinions during trading hours Sun Apr 10, 2011 2:05 pm

StocksWatch

9 Re: Rule #2 - Don't form new opinions during trading hours Sun Apr 10, 2011 7:35 pm

mark

10 Re: Rule #2 - Don't form new opinions during trading hours

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