Before we get started,please have a back up in anything and everything related to trading.If you trade online,at least two computers,two internet access,cable and dsl,in India,think you guys better have an Inverter as well.All this of course for the Intraday traders.Of course,your broker's phone no. must be easily accessible as well if you have to take that route.Basically a back up in everything.

Of course,your charts as well,the greatest weapon of the trader!!


Okay,let's get started...........

Just have a look at the attachment.....looks like a familiar story for many of us.The successful trader does exactly the opposite as stated below.......He has something that gives him an edge over the others.He has that something that tells him when to get in,when to stay out,and when to accept a mistake........He has his charts and the knowledge of how to use it.

What are these charts?A chart of Reliance is not the chart of the company,but the chart of the investor and trader emotions in that company.A chart tells us about the whole play of fear and greed,again and again,all over again.The chart of a particular time frame is therefore a study of fear and greed in the particular company or market in that time frame.

Various types of traders based on their time frame:

Day Trader :He trades intraday.He buy and sells,shorts and covers within that day.He closes all positions by the end of the day.He takes no risks overnight.He basically uses the 5 and 10 min charts for his trading with the 15min and the 60 min charts as backdrop.

Swing Trader :A trader who trades the daily charts,fine tuning his entry using the 60min charts.His trades last 2-5 days.

Position Trader :Nearly equivalent to investing,but nearly can be an important distinction.He trades the weekly charts which means he holds trades from weeks to months.