I am busy how many trades can I take? It is very hard to answer this question without knowing more information about the individual’s trading plan and financial condition. Many traders have their strategy for trading; some are willing to take a bigger risk, whereas others are just taking small losses.
Table of Contents
Trading using your own game plan
Generally, note these points as a thumb rule that trading is risky, pls only trade using your own game plan, this blog is not about how to trade but is written for educational purposes only, and only takes educational guidelines, not for trade. Use trading indicator, use stop loss, do not over trade, trade with plan and plan your trade.
Newbie Traders sample
I am taking a simple example for newbie traders.
Let’s say he has a trade capital of
$5000 total amount for a trading account.
Take medium stock and can only buy 2 stocks by using this size account. Pls only play one trade at a time.
If you have trading Capital of $10000 you can make two trades at a time, and monitor it daily for just 20-30 minutes a day. Newbies must learn from the book, internet, take a training, seminars and find out which is suit to your personality, and stick on it for the daily basis. Money management is very important. First rule is protect your portfolio, second act with your buy, sell, and stop loss rule, and make it profitable. Always think trading is your business & you are the owner of your business. YOU ARE THE BOSS OF YOUR BUSINESS.
Which trading Indicator uses for trading?
Learn some books chart patterns, and trading for a living to gain some knowledge of popular technical analysis. some indicators and other necessary tools for trading which are like. Stock Top, bottom, Higher high, lower low, MACD, Bollinger Band, Super trend, Relative Strength Indicator (RSI), trend line, support, resistance, moving average with different time frames, etc. In fact there is no any specific indicator I recommend, but I use moving average, volume, and other Support Resistance, Trend line, Candle stick price action chart. That’s it. It does matter which indicator you use, just see whether it is profitable for you, test it and stick the best one.
If you use any indicator please make confirmation of any other 2-3 different tools/indicators before making a buy and sell decision.
eg
If you are planning to buy any stock, say A, the criteria must be price should be above the 50 MA, RSI above the 50-60 range, and trend line breakout upwards- if all these give the buying signal and your intuition says it is time to buy, BUY IT.
Similarly, to sell the stock do it the opposite way- the price moving below the 50 MA, RSI downward pointing, trendline break downside, if you think, it is better to sell, sell it.
Conclusion
Trading is a business, also a second income for anyone despite of their education, nationality, color, etc. One can start trading from scratch i.e small amount of money by leaning discipline trading step by step- take a trade wisely and earn enormous amount of money and become a well verse professional traders in 3-4 years time. Learn and follow good rule and stick on it, is the only secret in a trading.
