Domestic market showed smart recovery during last trading hours and ended the day with marginal losses after trimming its earlier losses. Indian market opened on weak note tracking negative global cues. Further market stayed in negative territory on significant selling pressure and made smart recovery on selective buying from the banking and oil and gas space. The market gained some ground during final trade to end marginally lower on short covering. NSE Nifty ended above 4,300 mark and BSE Sensex around 14,500 level. From the sectoral front, recovery was led by Oil & Gas, Bank, Reality and FMCG stocks. However, Metal, Consumer Durables, Capital Goods and IT stocks were out of favour as witnessed most of the selling from these baskets. Midcap and Smallcap stocks also witnessed recovery as ended marginally lower. The market breadth was positive as 1329 stocks closed in green while 1255 stocks closed in red and 96 stocks remained unchanged.

The BSE Sensex closed lower by 66.02 points at 14,498.51 and NSE Nifty ended down by 11.35 points at 4,348.65. The BSE Mid Caps and Small Caps ended with losses of 0.31 points and 0.25 points at 5,741.98 and 6,891.39. The BSE Sensex touched intraday high of 14,547.41 and intraday low of 14,281.10.

Lossers from the BSE are Ranbaxy Lab (3.61%), Tata Steel (2.67%), Maruti Suzuki (2.56%), Bharti Airtel (2.50%), Reliance Com Ltd (1.71%), Infosys Tech (1.44%), HUL (1.41%), Tata Power(1.14%) and NTPC Ltd (1.11%).

The BSE Metal index plunged 133.91 points to close at 12,214.41. Lossers are Tata Steel (2.67%), NALCO (2.41%), Sesa Goa Ltd (2.05%), JSW SL (1.64%), Gujarat Nre C (1.58%) and Steel Atuhority (1.44%).

The BSE Consumer Durables index dropped 40.17 points to close at 3,800.62. Major lossers are Blue Star L (2.45%), Gitanjali Ge (1.73%), Rajesh Export (0.21%), Videocon Ind 0.77%) and Titan Ind (0.07%).

The BSE Capital Goods index lost 22.84 points to close at 11,863.78. Lossers are Jyoti Struct (2.56%), Siemens Ltd (1.99%), Havells India (1.94%), BSKF India (1.67%), eleocn Eng C (1.45%) and Elecon Eng C (1.07%)

The BSE Oil & Gas index closed higher 29.12 points at 9,688.58. Major gainers are essar Oil Ltd (3.80%), Reliance Pet (0.86%), Gail India (0.82%), ONGC (0.64%), Aban Offshore (0.63%) and Relaince (0.18%).

The BSE Bank index closed up 11.66 points at 7,021.35. Major gainers are Kotak Bank (0.27%), Allahabad Bank (1.43%), Federal bank (1.19%), ICICI Bank Ltd (1.03%) and IDBI Bank Ltd (0.12%).

Tags: sensex, sensex update

Opposite the successful day traders who trade with the necessary moderation, there are those who trade excessively without realizing that they are signing up for sure losses. 

Here are the two types of over traders:

Type I: Technical Over trader

Novices in trading justify their actions by the technicalities of this field. Many of them find some technicalities working to their advantage. They then make pre-determined positions and look for some indicators to confirm their choices. After a few times of using the techniques they've developed, they create rules and stick to them. If the system works for them more often than not, they begin to believe that they have found a lucrative secret to trading and have beaten the odds. They then begin to take advantage of the system to increase their profitability. This is not really a bad practice but it lends to overtrading which could backfire on them.

Type II: Impulsive Over trader

People who make use of non-statistical or mathematical data often rely on other people's opinions, on the news, on their personal observations and hunches and advice by so-called experts or gurus. The problem with these is that they cannot compensate for quantifiable data and that the discretional over trader finds it hard to stay put because of them. He cannot stand inactivity thus he has to satisfy his compulsion to trade. The lack of assessment of sufficient indicators and enough technical knowledge is often the downfall of a trader.

Many have the impulse to overtrade and this impulse should be avoided. The key here is the practice discipline.

Being able to restrain oneself is a common characteristic of a successful trader. He could control himself and he has the capacity to become immune to common pitfalls that affect average trades. For example, he could be neutral when entering or exiting a trade, he knows that emotions have no place in this battlefield. He does not become too excited or too panicky when he achieves something great or when he begins to slide down. His emotional state is the same on days when he is making thousands of dollars and on days when he losing twice as much. 

Discipline also includes the constant practice of patience during training. He not only trains with day trading courses or seminars but he also treat each day of trading as training day. He strives to continually enhance his capacities and skills as a trader without stopping when he thinks he's reached his peak. 

Tags: day traders, types of day traders, technical over trader, impulsive over trader, day trading, stock market