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Checklist For New Stock Traders

Before new traders start trading they have “high hopes”. Here are some of the high hopes:

1. I will invest 5000 and make 10000 every month. They forget that its 100% return a month.
2. If Nifty will open gap up I will buy calls, if it opens gap down I will buy puts and make money. Its a myth that if there is a gap up the stock will keep going up or if gap down the stock will keep going down. Reversal is always possible.
3. Thought process of a new but rich-son trader: I will invest 1 lakh and make 1 crore in one year and prove my dad that he is a fool working hard in his business making just 30% return a year.
4. In five years time I will be a multimillionaire.
5. New option trader: I will buy an option for 10 and sell at 20 – doubling my money every time I trade because I have seen that happening many times.

Reality: ALL of the above are just a myth, not a reality.

With time the stock markets teach them the reality.

Here are checklist for new traders before you start trading:

1. Make a list of all your trades – its profit loss and the mistakes you did

When I say each trade it means that. Buy a note book (yes a note book – not just a soft copy – but make a hard copy). Write date of trade, time taken to trade, closing time of the trade, total money at risk, why you took the trade, profit or loss and reasons for profit or loss. Everything is important.

Review this note book at the end of every trade.

2. Money Management

You must know how much you are willing to risk in each trade. When starting new do not risk more that Rs.1000 per trade even if you are son of a very rich man or you have a very high salary. 1000 rupees is 1000 rupees – it has same value whether in hands of a beggar or Mukesh Ambani (one of the richest man in world and the richest man in India). Later when you have some experience you can increase the stop loss limit.

Therefore you must keep a stop-loss in the system as soon as your trade is triggered. Read this for more information on stop loss:
Best Ways To Keep Stop Loss For Intra Day Trading

3. Moving Averages

If you want to be day (intraday) trader focus on moving averages. If you want to trade in very small time frame then 5 minutes moving average is the best indicator. Read this: How to trade moving average

4. Do not trade as soon as markets open

New traders cannot stop themselves to start trading as soon as markets open. This is a very wrong time to trade. During the first half hour and last half hour it is the new traders who are quite active in markets. First half hour belongs to the novice intraday traders, the last half hour belongs to the stop-loss takers and BTST (Buy Today Sell Tomorrow) traders – hoping to trade the gap up and down.

Fact: Markets take time to settle down when professional traders enter. Professional traders enter only after 9.45 am and leave (close their trades) before 3 pm.

5. Plan your trade before you enter

You cannot trade without a plan, you will most likely fail. Therefore you must know exactly what you are doing in your trade. Just trading to trade (speculative trades) will not make you money.

6. Educate Yourself

Keep reading and researching if you want to be a serious trader and make it a full time income. Anything that you find yourself good at, research more on that subject. For example due to good liquidity, proper fills and trading volumes I mostly trade Nifty options and Bank Nifty options in a very conservative way.

Contact me if you are interested in doing the course.

Please like & share my blog with your friends:

Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.

My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:

What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
Difference Between Other Courses And Mine
What Others Charge for Courses

You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.

This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.

This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.

What You Get?

Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.

You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.

Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).

Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.

The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.

Technical knowledge is NOT required. No need to monitor trades every second.

In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.

Since trades are properly hedged there is no stress in trading my strategies.

I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.

11 Reasons Why You Should Do The Course:
1. TA Knowledge NOT required
2. NO Software Required
3. Regular Monitoring NOT Required
4. Continue with Your Job
5. Do Course From Your Home
6. 100% Hedged
7. Stress-Free Trading
8. Not too much money needed to trade
9. Scaling Possible
10. One Time Fee
11. FREE Support For Months
To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.

Read the details of the course here.

If you want to enroll for the course you can do so here.

P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.

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If you have any question you can contact me.

You can read about me here and my trading mistakes here.

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Dilip Shaw, Founder

Copyright Infringement: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.

DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. In other words I am a sub-broker. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. I strictly adhere to laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles in this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given in this website. I am not responsible for any investment decision you take after reading any article in this website. Click here to read the disclaimer in full.

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About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 1 comment… add one }
  • Saugata Sarkar October 10, 2017, 6:32 pm

    Hi Dilip,

    Thanks for your mail. You know, initial days, my habit was like that only.
    This game is completely different than others.

    Now I know the meaning of power of compounding.

    I bought some shares of a company nearly 5 years back and forgot.
    I forgot it due to it did not satisfy my criteria of getting 20 to 40 % in a year. I was pissed off and let it sit idle.

    Now I saw it’s 2.5 times. It opened my eyes on power of compounding. Now I am learning gradually.

    Actually we need a glimpse of success after our hard work and patience(not before that) , then only we came to know the meaning of it.

    Happy investing.

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