The Best Prayer before day trading in 2022

The prayer before day trading is all about seeking the help from the GOD, if you are a day trader your opponent also prays to god to seek help but god can not help both of you,

because the stock market is a zero-sum game, one will lose the other will win, God always helps those who love to work hard.

prayer before day trading

If you want to become a successful day trader, there is something you must know as a trader before taking the position in the live market.

as you know the best trader always focus on what they can control and what they can not,

what you can control

  1. your trading style: range trading or trend trading
  2. when to buy and how much to buy
  3. time frame as per your trading style
  4. selection of stock for day trading ( what to buy)
  5. risk to reward ratio
  6. when to exit
  7. position sizing and risk management
  8. trading only with your trading plan
  9. reaction on winning or losing trade
  10. honor your stop loss
  11. do not trade more than two trades at a time

what you can not:

  1. Opening price weather market open gap up or gap down
  2. whipsaw when you lose your trade
  3. technical error or system error
  4. news headlines
  5. natural disaster
  6. human-made disasters like war, riots
  7. government policies
  8. the market trend will resume or reverse
  9. how many winning or losing trades in a row
prayer before day trading

When to buy

Do not take early entry without confirmation

do not buy too late it is better to avoid the trade

Believe in your trading strategy buy only whenever your system generates a signal to buy

you can use price action trading to find out the buy-sell signal

what to buy: how to pick the best day trading stock

  1. follow the volume and volatility
  2. consider trend and range to track uptrend and downtrend
  3. only trade stock with the tendency to range if you use range trading
  4. only trade stock with a trending tendency if you prefer to trend trading
  5. use the stocks screener to find stocks that match your trading method
  6. choose your own trading approach do not copy

position sizing and risk management

GOD helps you or not but position sizing and risk management is the best prayer before day trading, it always rewards the day traders,

in my seven years of a trading carrier, risk management gave me better results than any other trading strategy, it is the only holy grail of the market

Rules:

  1. Never lose more than two percent of your total capital in any signal trade
  2. Never open more than two positions at a time

how much to buy:

let us assume you have an account with the capital of $10000

how much you can lose in any signal trade= $10000*2% = $200 ( it is your maximum loss per trade)

now your system gives a signal to buy a stock at a price of $100 with a stop loss of $98

per share loss =$100-$98 =$2

how many shares you can buy = your maximum loss per trade/ per share loss

$200/$2 =100 share

After the position sizing, one more thing is as important as position sizing the risk to reward ratio it compares your absolute profit against its potential loss, how much are you willing to win at the cost of one dollar loss

I always prefer to have a 1: 2 risk-reward ratio.

How do you prepare for a trading day?

1. Do not carry your mistake
2. Check the world market
3. Do the EOD analysis, mark the monthly level, weekly level, and daily level
4. Identify chart pattern if possible
5. identify market trend whether it is an uptrend or downtrend
6. Mark major support(demand) and resistance(supply) zone
7. Use these levels to plan entry, stop-loss, and exit

How do you overcome fear in day trading?

the best way to eliminate the fear is to reduce your loss, there are three ways by which you can minimize your loss
1. Enhance your charting skill and focus on continuing learning
2. Be disciplined and stick to your trading plan
3. follow proper position sizing and risk management

who is the best trader?

The best trader is one who controls his emotions, focus on learning, and always tries to minimize his loss
patience is the key characteristic of good traders, they always follow their trading plan, and they do not do prayer before day trading, the best traders focus on planning, unexpected news, and mainly risk management.

What is the golden rule of trading?

these are some golden rules of trading
1. be disciplined
2. be patience
3. always follow your trading plan
4. do not underestimate position sizing and risk management
5. always follow the broader market movement
6. focus on learning
7. never lose more than two percent of your total capital in any single trade

Leave a Reply

Your email address will not be published.