Financial trading uses some phrases that are unique, including the terms that describe whether a trade was entered by buying or selling: Long When a day trader is in a long trade, they have entered a trade by buying a contract (or group of shares, or forex lot), and are hoping that the price will go up. Day traders will often use the terms buy and long interchangeably. … [Read more...]
Basic Principles of Short-term Trading
The first principle is to do few trades. At any point, one should not have more than 6 trades outstanding. A good number is 3-5. Equal capital allocation: Divide your short term trading capital equally into each trade. Ideally if one has Rs 1 lac of capital, … [Read more...]