MAKER'S OF MODERN TRADER!


Member Login

UserName
Password
Forgot Password   Submit

Member Registration
SERVICES
Free Service
  Educational Report
  Market Summary
  E-Learning
  Fundamental Query
  Premium Service
Stock Pick :-Indian
  Instant Trade Alert
  Stock Pick Daily
  Stock Pick Weekly
  Futures and Options
  Dynamic Portfolio
  Phone Consultancy
Stock Pick :- Global
  Global Market
EducationalCourses
Basic Course
Technical Analysis
Day Trading
Flliot Wave Principle
Futures & Option
1- On- 1 Coaching
Mentor Program
Software Training
Custom Formula
Seminars
Performance
More Information
Trading System
Getting Started
Research Report
Glossary
 
Special
  Letter to Educator
  Writers Library.
   
 
     GETTING STARTED
 
 
   GETTING STARTED || STRATEGIES || INFRASTRUCTURE ||TRAINING || FOOG FOR THOUGHT || DISCIPLINE
   PIT FALLS TRADING || TRADING ROOM || GREATEST INVESTOR || STOCK MARKET HISTORY || CHECK LIST

PITFALLS

PIT FALLS OF TRADING:-

Trading is very difficult to master successfully. Day Trading is Complex. It takes in time, commitment, education, equipment and money to become a consistently profitable part time trader. This site is designed for all walks of Investors and Traders

Day trading Pit falls are like problem associated with  fighting at the front end of the war without back up support when you feel it is a must.

In spite of your correct judgment there are a number of things that can go wrong when you day trade stocks over which you may have little or no control. In India Infrastructure for Communication and Power supply is fast developing however one cannot eliminate risk associate with these failure. These together with other common mistake form part of the risks associated with day trading of which you should be aware. Here are some of the common pitfalls:
Infrastructure problem associated with trading
  • Execution of your order are delayed or does not take place due to non availability of Power supply/ frequent failure due to power shortage.

  • Internet cable connection becomes slow / totally cut off due to server problem.

  • Your ISP goes down during the day leaving you without an internet connection.

Technical Problem
  • Execution of your orders are delayed due to order backlog or technical problems causing you to be filled at a higher price than you intended to pay.

  • Your online broker's Web site goes down during the day and you cannot complete your trades.

  • Failure or delays of real time data feeds can cause you to take an mistaken view of market conditions.

  • You place a market order as the price falls and find your order executed minutes later at a higher price because of the large backlog in unfilled orders for the stock.

  • You find that the online order function you wanted is temporarily unavailable.

Chart Updating
  • You find out that, on a particular day/ time, the Intra Day Chart is not getting updated as frequently as it should be or is inaccurate.
Recommendation Source influenced / paid by third party
  • You act on a ''hot tip'' from a newsletter or Web site that caters to day traders and later learn that this source is paid by third parties to make recommendations to bail them out at higher level.

  • Wrong interpretation of the recommendation on web site / tip.

 Human error while trading
  • Instead of Buy you press Sell order and vice versa.

  • No periodic check for the stop loss order trigger.

  • You enter the wrong stock symbol when placing your order online.

  • You lose track of the many orders you have placed during the day.

  • You misread a price quote and enter an order on the basis of this mistaken quote.

  • Emergency calls making you leave the trading without closing the order position.

  • Fear is more than greed:-This makes the emotional swing in the traders mind and an individual sells at the bottom and covers at the high of the day.

  • Crossed or locked prices may occur for a period of time during which orders are not executed at all.

Volatility
At times the price fluctuation is so much that one never get time to square off the position and then the prices immediately come back to the original level making panic in the market. For example zee was traded for Rs. 1, Reliance was traded for Rs 240 etc. Operator driven movement.
Media  Nuisance
At times when ever there are recommendation on the T.V Channel the share prices moves, tempting an individual to buy it and  when one does it so at higher levels the prices start to slide to low of the day.