- DISCIPLINE: The trader must have the ability to control themselves and follow a plan. Discipline is a required skill in trading without it there is no edge, you are either a gambler or simply trading off fear and greed. You will not be successful, instead you will be gamed by those in control of their emotions.
- RISK MANAGEMENT: Risk management must be a top skill for a trader to even survive in the markets. You must structure your risk per trade to be no more than risking 1% or 2% of your trading capital. You have to be able to survive 10 losses in a row. These strings of losses come around more often than a new trader would suspect. If you lose just 5% of your trading capital in each of ten trades you will be down almost 50% and need a 100% return just to get back to even. At this point you are ruined.
- PASSION: A trader must love to trade, without a passion for the markets and trading the new trader will not survive the learning process because anyone with common sense would believe that it was not worth the struggle. Passion will be needed to bring a trader through the learning curve and later the losing streak.
Archives of “January 27, 2019” day
rssHow to tell if someone is too old/young for you
“You Have No Chance of Seeing the Future…its Better to Recognise
Worth watching starting at 7:17:
Traits of a Successful Trader
On 4th March & 14th April-We Saw This Banana Wala was Trading & See…What Happened ?
On 4th MARCH :Nifty Future kissed 9191………………..We Told Bulls Story is over
On 14th April ,We told u its kissing Formation in NF……………………Story +Honeymoon is over !
(Fundamentals or Economy had not changed in country…………….Every number u see and watch is Manipulative ,Either it comes from Delhi or Mumbai or Corporate Results )
Everything is known to few People :StockMarket Information is with people those who stay or have offices near Nariman point in Mumbai !
Each Data-Any Data……..From Trading to Financial Data is known to Top People !
Don’t Look at Trading screen and Trade /Never Watch Blue Channels during trading…(If these people are so smart then they will not do job from Morning 7 till 5 )
TV Analyst-If they are smart …They will not advice they will trade.TV Channels gives Rs.2 lac to 5 lac per month (just peanuts for Hardcore and success full trader )
Think it over ! Technically Yours/ASR TEAM/BARODA
Trading :Mental Game
Trading can be quite challenging mentally, both when things are going well and when they aren’t. There are so many traps that must be avoided when trading:
-Discipline: Sticking to the system
-Greed: Not bending rules looking for always bigger returns
-Looking for home runs: When a trader is losing money, it can be very tempting to take extra risks to win back those losses
-Holding losers: It can become very tempting to keep a losing trade until it “turns around”
-Overtrading: Looking for quick results with displaying patience
-Trading on history: You get in trouble when you start trading based on the results of other trades.
-Overconfidence: Taking risks based on the assumption that you have “superior skills”
Keys to being mentally strong when trading
There are many important things to consider when you are trading in my opinion:
-Avoid emotional decisions: As much as possible, avoid trading on emotion
-Create trading rules that must stick to (entry points, stop losses, etc)
-Do not makes exceptions..once you start there is no end
-Do not doubt your system every time a trade goes wrong.. no system is perfect, the goal is winning more than losing
3 minutes each day
THE TRADE DECISION
1. Never add to a losing position.
2. Always determine a stop and a profit objective before entering a trade. Place stops based on market information, not your account balance. If a “proper” stop is too expensive, don’t do the trade.
3. Remember the “power of a position.” Never make a market judgment when you have a position.
4. Your decision to exit a trade means you perceive changing circumstances. Don’t suddenly think you can pick a price, exit at the market.
THE MARKET HAS CHARACTER
5. In a Bull market, never sell a dull market, in Bear market, never buy a dull market.. (more…)
Risk/ Reward
Taking Controlled Risk & Optimism in Trading
- Probability is the mathematical center of wise risk. Successful traders risk to win. For the risk taker, this uncertainty between small loss or large profit is where the fun is.
- If you tend to over trade or over risk, you need to pull in your frame of safety. You need to establish trading guidelines that will protect you. You need to be alert to your propensity to over risk and step back every time you catch yourself over extending.
- If you tend to avoid risk, you need to expand your frame of safety. You need to slowly add risk to your trading so that you become emotionally inoculated. Decrease your trading size and / or change to a trading vehicle that is less volatile. When this is comfortable, slowly increase size and volatility.
- When good things happens to an optimist, he says it’s permanent, pervasive, and personal. When a bad thing happens to an optimist, she says it’s temporary, specific, and not personal.
- Because the optimistic trader looks with bright enthusiasm towards the future, she is able to be realistic about what has happened in the past and is happening in the present. A pessimistic trader who has limiting doubts about his future trading, may be unwilling to admit what has happened or is actually occurring.
Step Into Personal Empowerment
Accepting ownership of consequences and balancing responsibility with your own personal goals lets you overcome stress, enabling you to making empowering decisions.
1) Awareness
Become aware of how you are in any given context. Look for a pattern. Be honest with yourself and recognise the pattern. Recognising and admitting you have a pattern that you would like to change is the courageous first step to self-actualisation.
2) Analysis
The next thing to do is to examine the engine of this pattern. What are the fears and the behaviours that keep this pattern alive? When do they kick in? What are you thinking? What do you believe? What is the stress you feel?
3) Action
The final step is to change it. What do you want? What needs to change? What do you need to believe in order to bring out that confident person inside you?
Decisions are your stepping stones through life. Some stepping stones can be wobbly and if you are on a wobbly one and not enjoying it, there is another stepping stone close by waiting for you to recognise it and hop on.