You might at least heard from few of the stock broking firms or from your friends that you can make great deal of money by short term trading. If they also say that there is equal chance of losing the money, you can believe their words. If they build their pitch around profits, get away from them. Even world's greatest traders and technical analysts cannot exactly pin point when the market will reverse and go against your position. But this doesn't mean that you are going to be loser always. But the loss is a possibility. There is a risk and the risk pays you off equally.
Unless it is long term investment, if you are trading for short term to medium term for some quick profits, the key is money management and taking positions in phases. We will more about more about these in upcoming posts. The more important is the mindset. For example, if you buy a stock for 40 rupees and waiting for making huge profit without any time line or price target, you are unlikely to get profit. So, when you are taking positions, it is very crucial to enter in the right price and right time. It is equal more important that you exit in right price and right time. In the next post, we will discuss why "entry" and "exit" are more important with charts.
Unless it is long term investment, if you are trading for short term to medium term for some quick profits, the key is money management and taking positions in phases. We will more about more about these in upcoming posts. The more important is the mindset. For example, if you buy a stock for 40 rupees and waiting for making huge profit without any time line or price target, you are unlikely to get profit. So, when you are taking positions, it is very crucial to enter in the right price and right time. It is equal more important that you exit in right price and right time. In the next post, we will discuss why "entry" and "exit" are more important with charts.
