Active Traders must prepare for the Market Day. Here I compile some guidelines for participating effectively in the market.
- Identify a Stoploss level for the Day. Identify a stop loss level for each trade depending on no of trades derived from that.
- Identify major world events that are currently in Play ( eg Bank recapitalization in US,Expected announcements, Gold as a risk aversion trade, weakness in Metals & Crude)
- Check Asian Markets ( Nkkei, Hangseng, Kospi, China)
- Check the movement of Macro data points ( Oil, Currencies,Precious metals)
- Check overnight movement in Europe and US ( Focus on Intraday movement and sectors in Focus eg Bank Stocks, Shipping etc refer to Bloomberg, Reuters )
- Filter the News items - News that affect your positions and stocks
- Focus initially on one stock at the opening.
- Try to identify the structure of the market day - Range bound, Up trending, Down trending
- Which sectors in Play?
- Which stocks in Play? watch levels . Support resistance
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