Why Traders Shouldn't Be Fully Rely On Call, Ideas, Intraday Targets In Stock Market
Why Traders Shouldn't Be Fully Rely On Given Intraday Targets
People has been entering in stock market to do
trading
and make profit from it but you know there are few things which you have to know and understand their practical process behind it because of these things you can lost money in market and these things very common and part of human habit.
When you start
trading
in the market and you don't know how the process works buy then also you want do it and make money from it. If you a want to trade then you need stock-share to buy or sell to do
Trading
but here you don't know which stocks you should have choose for trading then what you do you look for free ideas from TV channels ,apps and groups and from many other sources.
You see the stock and their price and mainly the target price which increase your excitement and you are going to buy it. I am not saying this is totally wrong and you should not do this in trading but try to understand what I am trying to say is don't do trading by being dependent on such way. You also clever and you know some things well and are ready to take risk so you are entered in the market....because of this you can control your trade and you have to do this in trading.
What Is Intraday Target Concept.
Target concept is some one ( experience traders ,technical analyser, brokers ) analyse the stock and predicts its movement (upside or downside ) and give advise to buy or sell it with a target for that trading day.( some time they give two targets if first one is hit )
How Traders Interact With It
Now people who are new and experience ones also take this stock ideas and advise and act on this and they take position and wait to hit the given target For the day.
The reason behind is :
• To Make profit
• To test given idea will work or not.
• Dont want to do anything
What Is Actual Happening
You know that this is market and i am saying it again and again this is not in anyone's control you just predict it for temporary and take advantages of it to make profit.
You know, in actual not all the given ideas are hit the target price and the reson is trading is done in the some In possibilities,
See Posibilities below :
• Some time it will hit the target price or some time it will not.
• Some time it will gain a little and again drops to original price or may be below to original price .
• May be , some time it will reduce directly instead of gaining.
• Or It will gain beyond given taregt price.
these are the real possibilities of trading and trading is done in this states you can verify it with your trading sessions. experienced trader knows this. when you will trade and study then you will undestand it.
How It Can Affects Traders
If you are trading like this and in this states then you need to be very careful because you are believing on others i know ideas providers also have experience and knowledge but taking them to much seriously and fully depending on them is much dangerous to you because if you stick to that idea and target is not hit and if you don't act as per market condition then your loss is fix and idea providers are not liable for any loss if happens in any condition, you know that...
This is a reason because of this traders lose money in trading because they don't act as per current situation and understanding it.
Even experienced Sources are giving ideas then also price will up and down based on buying and selling.( and we dont know how much quantity who is buying or selling exactly at that time ) No body cant tell the perfect price and its a prediction ..... remember its a prediction based on curent study and it can be go right or wrong..... You as a trader practically know this and keep in mind during trading.
How It Can Make Your Loss
If you stick to that target prices much seriousley and if don't adjust it will make your loss Because target will not going to hit every time .
In this case it will reduce your profit and push you in loss.
You will get only limited profit if target is not hit or price is not moved as per study.
Waiting makes your loss because price can be suddenly change anytime from green to red or red to green.
Here See One Example Explained :
Suppose the
Suggested stock price is 515
Entry price is 520 and target price is 535 and you entered in the market at that position and wait to hit first target of 535 but stock is moved only to 527rs and reduced back to 522 then what you do...still you are waiting for 535 and here price is struggling for support and to sustain in this case you lose your gained 7 rs profit or rs or may be you don't get any profit.if the target price is hit then its ok your trade is done and you make profit. but what if is not.( Read the possibility given above about trade done. So you some understand this.
You can wait here but there is time limit upto market close and you should take exit before it at current price.
What You Need To Do
- Do trading as a Smart trader
- Act as per market condition
- Take decision accordingly and book profit.
- Gain some experience from this type conditions.
- You can follow ideas but keep final decision in your hand control yourself and your trade.
- Try to understand the stock price graph and predict it.
You can predicts about cricket and politics on some basic things then why you can't predict the graph... you can do it, give it a try because here you invested your money if you take wrong decisions then you lost your money not others.
If you don't do this then you can't recover your lost money further in trading.
How You Have To Act
Here in trading you have to act practically you should considered below things :
• Stock price movement ability
for Example how much price can be move in one day like 10 or between 15-20 rs this is not fix it is approximately a average price. You can judge it from previous day graphs and current things.
• You Should see the current Support levels of stock price.
• You should see the Resistance level in the graph and keep in mind.
• You should be able to see the Sustained level of stock like where it can be or not.
• Changes in Volume.
• Market time how much time is left or remain in your hand if you want to wait.
I hope you can understand what we are trying to tell you and highlight, the things which can really affects your trading indirectly and can make your loss and we don't want you to take any such action or do trading such way in trading and take the unknown risk to make money .here we want we can make it more effective and reliable than past tradings.
Read This :
Self trading Is good or bad in share market
Practical Intraday Tips And Techniques
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