Sector update – Oil & Gas, Tech, Metal and Realty stocks gained while Capital Goods and PSU Banks are witnessing profit booking FMCG stocks gained on account of good quarterly results
Wockhardt plunges 14% on import alert; Macquarie downgrades Macquarie has downgraded it to neutral from outperform and reduced target price to Rs 1015 versus Rs 1350 per share. It says Ankleshwar facility receiving under import alert may lead to multiples falling under pressure in the near term. However, it remains bullish on the stock for long term
#Banknifty resistance @19180....but a move to 19400 likely ahead of #RBI policy....before it melts down again. #Nifty spot supports @8650/8604.....resistance @8733/8788........Sell on rise.........
How to Day Trade: 10 Trading Secrets for Beginners
Day Trading refers to market positions which are held only a short
time; typically the trader opens and closes a position the same day.
The concept got a bad reputation in the 1990’s when many beginners
began to day trade, jumping onto the new online trading platforms
without applying tested stock trading strategies.
They thought they could “go to work” in their pajamas and make a
fortune in stock trades with very little knowledge or effort. This
proved not to be the case.
Yet day trading is not all that complicated once you learn a
simple, rules-based strategy for anticipating market moves, such as that
taught at Online Trading Academy.
Here are 10 secrets to day trading for beginners:
Look for scenarios where supply and demand are drastically imbalanced, and use these as your entry points.
The financial markets are like anything else in life: if supply
is near exhaustion and there are still willing buyers, price is about
to go higher.
If there is excess supply and no willing buyers, price will go
down.
At Online Trading Academy, students are taught to identify these
turning points on a price chart and you can do the same by studying
historical examples.
Always set price targets before you jump in.
If you’re buying a long position, decide in advance how much
profit is acceptable as well as a stop-loss level if the trade turns
against you.
Then, stick by your decisions. This limits your potential loss
and keeps you from being overly greedy if price spikes to an untenable
level.
Exception: in a strong market it’s acceptable to set a new
profit goal and stop-loss level once your initial target is achieved.
Insist on a risk-reward ratio of at least 3:1 when setting your targets.
One of the most important lessons in stock trading for
beginners is to understand a proper risk-reward ratio.
As the Online Trading Academy instructors point out, this allows
you to “lose small and win big” and come out ahead even if you have
losses on many of your trades.
In fact, once you gain some experience, risk-reward ratios of as
high as 5:1 or even higher may be attainable.
Be patient.
Paradoxical though it may seem, successful day traders often
don't trade every day.
They may be in the market, at their computer, but if they don’t
see any opportunities that meet their criteria they will not execute a
trade that day.
That’s a lot better than going against your own best judgment
out of an impatient desire to “just do something.” Plan your trades, then trade your plan.
Be disciplined.
Again, you need to set a trading plan and stick to it.
At Online Trading Academy, students execute live stock trades in
the market under the guidance of a senior instructor until right
decisions become second nature.
If you’re trading on your own, impulsive behavior can be your
worst enemy. Greed can keep you in a position for too long and fear can
cause you to bail out too soon.
Don’t expect to get rich on a single trade.
Don’t be afraid to push the “order” button.
Novice day traders often face “paralysis by analysis” because
they get wrapped up in watching the candles and the Level 2 columns on
their screen and can’t act quickly when opportunity presents itself.
If you’re disciplined and work your plan, actually placing the
order should be automatic. If you’re wrong, your stops will get you out
without major damage.
Only day trade with money you can afford to lose.
Successful traders have a “little bucket” of risk capital and a
“big bucket” of money they’re saving for retirement or another
long-term goal.
Big bucket money tends to be invested more conservatively and in
longer-duration positions.
It’s not absolutely forbidden to use this money occasionally for
a day trade, but the odds should be very high in your favor.
Never risk too much capital on one trade.
Set a percentage of your total day trading budget (which might
be anywhere from 2% to 10%, depending on how much money you have) and
don’t allow the size of your position to exceed it.
Otherwise, you may miss out on an even better opportunity in the
market.
Don’t limit day trading to stocks.
Forex, futures and options are three asset classes that display
volatility and liquidity just like stocks, making them ideal for day
trading.
And often one of them will present appealing opportunities on a
day when the stock market is going nowhere.
Don’t second-guess yourself, but do learn from experience.
Every day trader has losses, so don’t kick yourself when the occasional trade doesn’t go your way.
Do, however, confirm that you followed your rules-based strategy and didn’t get in or out at the wrong time.
The stock broke its support of 80 levels which is working
well from last eight weeks and gave the lowest daily close of last forty
three trading sessions. In the April series it failed to cross and hold
above 92 zones and started witnessing selling pressure. It has a
tendency of witnessing selling pressure at every minor attempt to bounce
back. Thus we are recommending selling the stock on bounce back move
with the strict stop loss of 85 for the downside target of76 levels.
The stock has been consolidating in a range but the
supports are shifting to higher levels. At the being of series it was
respecting to the support of 920 and now the support shifted to 931
levels. It is witnessing short covering and a hold above 936 may take
the stock higher towards 985 levels.
