“Trend is your friend”. Always Trade in the direction of the trend with reasonable stop-loss levels and never against it. As a Trader one is concerned about the Trend for the next 4-5 days. If, after a continuous rise or fall for a few days some reversal patterns appear, one can take this as a trading opportunity.
“Ride on Profits & cut Losses”. If a trading decision is right one can partly book profits and partly wait for more gains depending upon which phase of the settlement one is in. However, if one is certain and has decided the stop-loss levels, one should not panic and reverse the decision in haste.
“Do not be too Greedy”. Even though one is on the right side of the Trend and one should ride he Trend one should not get too greedy and book profits at predecided target levels.
Take trading decisions Yourself and do not listen to others. Also do not be biased while analyzing if one has already taken a position.
Always be Flexible. This means that if one is following a certain trend or a pattern and if there is a change in the trend and if one is convinced about it, he should immediately reverse his position rather than waiting for things to happen. In fact one should be so fast that he should change and trade in the direction of the trend.
Do not be compulsive trader. Trade only when you sense an opportunity and not as a matter of habit as this can lead to heavy losses.
Make use of all Trading Tools for and do not be over dependent on any particular tool or be biased towards or against any particular tool. No one Technique or Tool is more important or less important than others. All are equally important. Ideally one should use a combination of Japanese Candlesticks Patterns/Trendlines as well as Previous significant levels for Support & Resistance Moving Averages/ Oscillators/ Volume Breakouts and take a decision when majority of these indicators are favorable.
Trading is an activity which requires a high level of skill and accuracy in timing as well as quick decision making and there is no absolute guarantee that inspite of every precaution one will always be one the inning side. However one should aim to get a strike rate as high as possible with the use of all the tools that we have seen.
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