06 Sep, 2017

Which are the factors that influence a fresh trader to choose a segment?

Which are the factors that influence a fresh trader to choose a segment

Firstly we are entering into the trading world there is a lots of questions are go through our mind. And the major one is how can I choose a segment for my trading. This is a most important milestone of our trading because a segment that are selecting is suitable for your living environment. That is each market have different opening and closing time so if you’re engaged in your own work, you did not concentrate in trading. So analysis the top markets timing that‘s why we have to arrange our convenient trading time. Investor and his or her goals and investing time frame will affect an investor’s entry into or exit out of a given stock or sector.

Start with equity swing trading, profit could be very less but you will have earned it. In case the stock moves in opposite direction have a definite stop loss and do not let it fall further and take away your money. Investment in 3 to 4 stocks simultaneously so that if 1 falls others will compensate and so on.  Keep 10 k for intraday trading and start with shares which are in trading range. Initially put 5k as intraday investment and keep 5k as support for intraday.

Keep 10 k for intraday trading and start with shares which are in trading range. Initially put 5k as intraday investment and keep 5k as support for intraday. Do not aim for higher profits and try to use this intraday with fixed amount of targets in your mind. Have closer stop losses since your investment is only 5k. More or less like scalping.

Learn F&O and other strategies and observe markets for at least 6 months during this time you may start in the order of the list below.

  1. Equity
  2. Index future (Nifty/BN)
  3. Stock futures
  4. Index options
  5. Stock options

As a beginner you must avoid buying or selling for very short terms. Please remember accepting loosing money while doing some trial trades also is a bad habit. So, whatever you do, do with winning attitude. Don’t buy anything to try. For initial day’s you should focus on large capital stocks.

For taking decision on commodity trade every trader need a price data source. Experienced commodity traders prefer chart rather than tables. Because chart gives you daily price action with the help of thin vertical bars indicating daily high and low. The bar chart helps traders to understand the trend of the market. In this way trader can suddenly grasp historical and recent price action.

If we select MCX then we have to find which the most traded commodity is because the most traded commodity has a good movement in the market. In my opinion copper and crude oil are safe for beginners. In case of NSE we have to choose the most active equity.

It’s critical for a trader to understand market trend and where to look for it and to remain calm and patient. So they do over-trade. Traders must study lesson from a crocodile’s cam and patience for it’s prey.

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