1. Always wait for the setup: No Setup-No Trade.
2. THE BEST trades work almost right away.
3. Never take a big loss. If it doesn’t ‘feel’ right. Remove it!
4. Always perfect your craft and sharpen your skills(good traders are constantly learning)
5. Be patient with winning trades: Impatient with trades that fight back.
6. DISCIPLINE is the key to winning at everything!
7. Never get emotionally attached to trades, trading, losses or profits.
8. Always trade with the size that makes you unemotional(emotional trading is the quickest way out of this game).
9. Keeps things simple and do not over-think or over-complicate your trading. LESS IS ALWAYS MORE.
10. Stay humble at all times.
Archives of “Education” category
rssFrequency of Extraordinary Items – Bernstein (See This Happening With Indian Corporates )
Control Your Emotions
1. Caution.
Excitement (and fear of missing an opportunity) often persuade us to enter the market before it is safe to do so. After a down-trend a number of rallies may fail before one eventually carries through. Likewise, the emotional high of a profitable trade may blind us to signs that the trend is reversing.
2. Patience.
Wait for the right market conditions before trading. There are times when it is wise to stay out of the market and observe from the sidelines.
3. Conviction.
Have the courage of your convictions: Take steps to protect your profits when you see that a trend is weakening, but sit tight and don’t let fear of losing part of your profit cloud your judgment. There is a good chance that the trend will resume its upward climb.
4. Detachment.
Concentrate on the technical aspects rather than on the money. If your trades are technically correct, the profits will follow.
Stay emotionally detached from the market. Avoid getting caught up in the short-term excitement. Screen-watching is a tell-tale sign: if you continually check prices or stare at charts for hours it is a sign that you are unsure of your strategy and are likely to suffer losses.
5. Focus
Focus on the longer time frames and do not try to catch every short-term fluctuation. The most profitable trades are in catching the large trends. (more…)
Defensive trading keeps you in the game long enough to win.
Cicero Philosophy -Written in 43 B.C :101% Still Valid …Think It's Happening in India or Not ?
“Cicero’s 146 (43 B.C) of the Roman empire wrote a philosophy that is still valid:
1.”The Poor: Work & work.”
2.”The Rich: Exploit the poor.”
3.”The Soldier: Protects both.
4.”The Tax Payer: Pays for all the three.”
5.”The Wanderer: Rests for all the four.”
6.”The Drunk: Drinks for all the five.”
7.”The Banker: Robs all the six.”
8.”The Lawyer: Misleads all the seven.”
9.”The Doctor: Kills all the eight.”
10.”The Undertaker: Buries all the nine.”
11.”The Politician: Lives happily on account of all the ten.”
Paul Tudor Jones 10 Trading Principles
Paul Tudor Jones is one of the greatest traders that’s ever lived. He has the long term record to prove it.
Here are 10 principles that made him a successful and profitable trader.
Taking losses
Taking losses is a tough part of doing Day Trading and no one is immune to making mistakes. In fact, professionals know that the sin isn’t in taking a loss, but rather not taking a loss and letting a loser continue to eat away at the equity in a portfolio.
Losers not dealt with are like a cancer which can quickly spread throughout the body if it is left untreated.
Reports the White House plans to escalate trade pressure on China
The report said to be on the Dow Jones service that the White House plans to escalate trade pressure on China
I haven’t seen the report elsewhere, and nothing further at this stage
Overcome your ego
Raghuram Rajan may ask govt to help with infra exposure of PSBs
Reserve Bank of India Governor Raghuram Rajan is expected to ask the government for some clear interventions in the coal and road sector to stop the mounting of bad loans in the infrastructure sector with banks.
RBI has reason to be worried as the government plans to hold at least two major auctions within this fiscal for telecom spectrum and coal blocks.
But a clutch of leading public sector banks have informed the RBI they will not be able to lend to companies for these auctions since their infra lending has peaked.
The list includes State Bank of India, Bank of Baroda and others who informed Governor Rajan’s team about their problems in a meeting, last month.
The total exposure of the banking sector to the infrastructure sector is Rs 7,94,300 crore as on September 2013 (RBI data). The gross non-performing assets and restructured advances of public sector banks was almost 12 per cent (11.87) of their total loans.
The banks want some payments to come in from the power generation companies so that the level of their stiff exposure melts somewhat.
For the telecom auctions the banks will be expected to lay out about Rs 40,000 crore, while the sum for coal blocks is expected to be a bit lower. (more…)