How to Trade using Support and Resistance levels?
Please refer following document carefully and trade accordingly

Important golden rules for day trader to be successful

1. We strongly advice to do paper trading before start trading with your actual money.If you don’t get success in paper trading then do not start day trading otherwise there is high probability that you will lose all your money.

New comers to share market and day trading should take very precaution and should not start with day trading directly. For paper trading method please visit at - 
http://www.daytradingshares.com/day_trading_practice_simulation.php

2. Due to market uncertainty and volatility and also as markets are highly influenced by lots of external factors it is strongly advised to book profits wherever applicable or take stop loss and come out of trade if it is looking that the stock price is not moving in required direction.

3. Initially don’t use margin amount provided by broker for day trading. Once you get lots of experience then you can use margin amount. Trade only with the money available with you so that if the trade goes wrong you can take delivery of those stocks and sell later when the price goes up instead of bearing loss.
This type of trade is only possible if you have bought shares and not possible for short sell trade.

4. Don’t try to trade daily. If markets are very volatile then it is better to wait and watch instead of start trading immediately.

5. Trading without losses is not possible so try to reduce losses and increase profit so that at the end of the month you should be in profit.

6. Day trading price movement is totally based on news and events, so be in touch with them. So  instead of trading blindly on any techniques it is highly recommended and advised to keep yourself in touch with the market 's news and updates.

7. Please follow strategy called  “Take small profits and do multiple trades”.
Please visit below link to know more abot it. First learn and then earn.
http://www.daytradingshares.com/day_trading_tips_multiple_trades_profits.php
The following strategy to make use of resistance and support levels

1) If stock opens between R3 and S3

To Buy -
Wait for the price to go below S3 and then when it moves back above S3 then Buy.
Stoploss - Place Slightly below S4 level.
Target - See below this article to know how to set the target and book profit.

To Short Sell -
Wait for the price to go above R3 and then when the price moves down below R3 then Short Sell.
Stoploss  - Place Slightly above R4.
Target - See below this article to know how to set the target and book profit.

2) If stock opens between R3 and R4

To Buy
When price moves above R4 then Buy.
Stoploss  - Place Slightly below R3.
Target - See below this article to know how to set the target and book profit.

To Short Sell
When the price goes below R3 then Sell.
Stopless  - Place Slightly above R4.
Target - See below this article - to know how to set the target and book profit.

3) If stock opens between S3 and S4

To Buy
When price moves above S3 then Buy.
Stoploss - Place slightly below S4.
Target - See below this article - to know how to set the target and book profit.

To Short Sell
When the price goes below S4 then Sell.
Stoploss - Place slightly above S3.
Target - See below this article - to know how to set the target and book profit.
4) Open price is outside the R4 and S4

Wait for the prices to come in range and trade accordingly as mentioned in above scenarios.

Now lets see the Target calculation

How to take profit after breaking Resistance and Support

In day trading/Intraday trading, profits are booked in few hours so traders need to look for low  
profits.
Very Important - To be successful in day trading, take low profits and do daily trading.

According our strategy we advice our traders to book low profits and do multiple traders because  
markets are uncertain and beyond anybody’s control.

The following list shows how profits are taken in day trading -

So if the stock price is till Rs 100, trader can take 0.5 paise as profit per stock.
• If the stock price is between Rs 100 to 200, trader can take profit of 0.8 paisa to Rs 1.0.
• If the stock price is between Rs 200 to 300, trader can take profit of Rs 1.0 to Rs 1.5
• If the stock price is between Rs 300 to 400, trader can take profit of Rs 1.5 to Rs 2.0
• If the stock price is between Rs 400 to 500, trader can take profit of Rs 2.0 to Rs 2.5
• If the stock price is between Rs 500 to 600, trader can take profit of Rs 2.5 to Rs 3.0
• If the stock price is between Rs 600 to 700, trader can take profit of Rs 3.0 to Rs 3.5
• If the stock price is between Rs 700 to 800, trader can take profit of Rs 3.5 to Rs 4.0
so on it continues….
Please note -
Basically traders think this is very small profit but in day trading if you want to get success then this type of booking profits assures you good returns at the end of the day.

To know how much profit can be generated using this technique please visit below link and you will be surprised to see the profits.

We call this strategy as “Take small profits and do multiple trades”.
If you are interested to know more about these strategies then please visit below link. First learn and then earn.
http://www.daytradingshares.com/day_trading_tips_multiple_trades_profits.php
 
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www.DayTradingShares.com
First Learn and then Earn
Earning money in share maket  requires appropriate knowledge and experience, so it is highly advisable to gain adequate knowledge before start trading and investing in share market.
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