day trading precautions

If you are new comer to share market
New comers to share market should avoid day trading. They should study entire market like important terms, global markets, share movements and should acquire lots of information and then start doing paper trading practice before actual starting the day trading.
Note -
Day trading is risky if you don’t have appropriate knowledge.
Most of the important information related to share and share market is mentioned on our website.
If you wish to do paper trading practice then please visit below link for see the practical ways of doing it
www.daytradingshares.com/day_trading_practice_simulation.php

Day Trading Precautions
Every situation is not suitable for day trading. So please have a look on
following situation which you can try to avoid to prevent losses especially day trading.

1. If you are new comer to share market
2. When you have a strong mind set (especially new comers to share market) that you want to earn big amount of money very fast in single day.
3. Not confident and not sure
4. Not able to judge market
5. No good mind frame
6. When market opens and closes (especially few are new comers).
7. When shares and markets are trading in very narrow range.
8. Impatience, Greed and Fear

Not able to judge the market direction
It happens many times that even experience traders or analysts are not able to judge the market direction due to various reasons like impact of global markets, domestic circumstances and many more.
So it is recommended avoid trading if you are not able to judge the market trading take break for some time and then try to analyze.
If you have good patience then you can sit and watch the trading terminal and wait for right opportunity and if you don’t have patience then take break.

No good mind frame
Mind frame plays very important role in day trading but in fact even in investing.
Success (profit) failure (loss) depends how you react to current market situation.
If you are in angry or upset mood then it is risky to do day trading, so avoid trading for that day for that time.
Even if you are feeling uncomfortable then also it is recommended to stop trading and take break for a while or for entire day.
Money saved is money earned.

If you have mindset that you want to earn fast money and in that also in single day
We have heard that most of the people come to share market or to day trading to earn fast money and in single day.
According to our experience it is not possible to achieve this type of success because share market is not gambling.
And if people continue trading by keeping same mind set then it is risky and chances are there that they may loose money.
Share market or day trading is not where you have to test you luck but in fact it requires the systematic approach by studying the various factors and parameters.

Not confident and not sure
If you are not confident and you are getting felling of losing money then don’t do day trading.
The fear of loss of money comes to mind if you don’t have proper knowledge of the product and the system.
So don’t continue trading.
First gain all necessary information and start working on paper trading practice and try to gain profit in paper trading because this will boost your confidence and then you can plan to do actual trading.

When market opens and closes
Market opens at 9:55 am and closes at 3:30 pm.
During this period mostly 20 to 30 minutes tolerance the trading happens very unexpectedly due to participation of big players/traders due to which market becomes indecisive for some time so if you are new or don’t have enough experience to judge the market status then trading should be avoided.
To know more about some more factors where you can avoid trading please visit at
Day trading timings

When market is moving in narrow range
It has been observed that some times market neither goes up nor it moves down it just oscillates (moves up and down) in very small narrow range due to which it becomes very difficult to take analyze the market and take the trading decision.
At the same time it becomes very difficult to judge the specific stock movement whether the stock price is going up or moving down.
So in such circumstances apply wait and watch strategy and only trade when market moves in any one particular direction don’t try
to do forceful trades by predicting the market direction.

Impatience, Greed and Fear
If you have high influence of greed and fear then first you should work out to reduce the intensity of these two factors because these two factors are considered as enemies for day traders and also for investors.
Impatience is another important factor which makes you to panic and take inappropriate decisions while trading. So avoid becoming impatience and having enough patience which is prime requirement for day trading.
If you are interested to know more about how to take control of your mind set then please visit at
Mind preparation for Day Trading

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