- Never, NEVER cancel a stop loss. I know, I know, every time you have a stop loss in the market, the market moves just enough to stop you out, right? Well it might mean that you should evaluate where you place your stops (this is where good trading journals come in handy), but once you’ve done your analysis and placed the trade, you need to be committed to the trade and your plan. The only adjusting you should do is to lock in your profits.
. - Always have your broker or your trading desk number handy, even if you trade electronically. This is really important for the day trader who is trading leveraged markets. It is easy to get a little too comfortable when your trading platform and internet connection are running smoothly, but once you drop your guard that inevitable lost connection will happen…a lost minute, even seconds could be an expensive lesson!
. - Always check your open orders. This can be done a few different ways depending on your trading platform, but if your intention is to be flat in the market, always double check! (more…)
Archives of “February 2019” month
rssThe fastest animal. Peregrine falcons defies terminal velocity; sky dives at over 200 miles per hour to kill prey
It took 75 years for telephones to achieve 50 million users… Angry Birds reached the same goal in 35 days!
Naked Truth About Trading & For Life too
Nifty Future :5025 is Major Hurdle
Thought For A Day
To the Spammer
A personal message to the mindless moronic chode who tries to spam my blog with using Bad words on every post:
Comments on this blog are MODERATED, and therefore I will NEVER publish one of your retarded spam messages, so WHAT’S THE POINT?
Therefore, why not go forth and throw yourself under a train?
Kind regards,
AnirudhSethiReport
Greed & Fear
Emotions, emotions and emotions, trading will always full of them, movement of the market based on them. Our rush to buy or sell sometimes overflow our plans. The common traders question was “Why did I do this or do that?”
What is driving us to get into the market when we are not prepared and exit on completely different prices, which completely disagree with our plans? Two major factors, Greed and Fear.
Greed come when market goes as we expected then we want more! We believe it will continue for very long time. We forgot that everything changes. For successful trading you need a good strategy and discipline to execute that strategy. No matter how good it is, trading is completely useless without proper execution of the strategy.
We Fear when we afraid to miss the profitable move or to loose the money. And until fear and greed will dominate us, our results will be very unstable. And worse if our money management is not the strongest point, this is the weakest point for emotional traders, will soon will be out of money, before we even had a chance to establish ourself as a trader.
My 8 Rules of Trading
7 Reasons Why 95% Traders Lose Money in Trading
1) The majority of traders think directionally, and they think linearly. That has them trading momentum and that has them trading trends. Even the traders who look for reversals look for momentum and trend, just in a different direction.
2) Market behavior can be described as a combination of cyclical and linear (trend) components over any particular time frame. As markets become more crowded, cyclical components dominate over time, reducing the Sharpe ratio of those markets.
3) Traders fail because they are thinking in straight lines when they should be thinking in cycles. They think of cycles as sources of choppiness and noise, not as sources of signals that are different from linear, trending ones.
4) Any market cycle consists of mean-reverting behavior at cycle peaks and troughs and trending behavior between peaks and troughs. This ensures that any single approach to trading markets (looking for trend/momentum; looking for reversal/mean reversion) will draw down substantially over many cycles.