Always remember that stock market trading is a Science by itself which needs to be executed with an art. With this as a premise to the subject of
intraday future trading make sure that you stick to following guidelines as enumerated below to be successful in the market.
- Intraday trading should be done without any ego.
- One should follow the market indicators to make decisions and not anticipate the market to perform as per personal expectations.
- Flexibility and discipline are key for a successful trader.
- Do not be afraid to be a sheep.
- Do not overtrade.
- Take a position only when you know your profit goal and know when to stop if the market goes against you.
- Trade with the trends rather than trying to pick tops and bottoms.
Do not trade many markets with little capital.
- Have a combination of contracts while trading.
Do not trade just the volatile contracts.
- Calculate the risk/reward ratio before putting a trade on, then guard against holding it too long.
Establish your trading plans before the market opens to eliminate emotional reactions.
- Decide on entry points, exit points and objectives.
- Do not change during the session unless you have a very good reason.
- Follow your plan.
- Profits are for those who act, not react.
- Once a position is established and stops are selected, do not get out unless the stop is reached or the fundamental reason for taking the position changes.
- Use technical signals (charts) to maintain discipline - a vast majority of traders are not emotionally equipped to stay disciplined without some technical tool.
We suggest traders to use future trading only if they have some experience in this segment as aim is not to kill the golden hen in one day but is to get golden egg every day.
