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Learning From Mistakes

  
  Education
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Layout 1The ability to learn from mistakes is an important part of the skill development process. In addition, those who trade well tend to adopt a “perpetual student” mentality toward the markets which also helps keep their ego in check.

However, learning from mistakes you make is not as simple as it sounds. Equally important and challenging is figuring out which mistakes offer a lesson and which mistakes are just a routine part of trading. For example, sometimes I run into traders who think that in every losing trade there is a lesson to be learned and that’s simply not true unless you see a specific pattern repeated in other unsuccessful trades. As any experienced trader will tell you, a trader can make all of the right moves and their analysis may be 100% correct, but that doesn’t guarantee a successful and profitable trade. Perfection and trading well do not go hand in hand and not all unsuccessful trades offer a lesson to be learned. It is in the ready identification of patterns when making mistakes that you see within the more experienced and high performers.

Discipline-Risk Managment-Passion for Traders

  
  Education
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  1. 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.
  2. 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.
  3. 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.

On 4th March & 14th April-We Saw This Banana Wala was Trading & See…What Happened ?

  
  Education

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

  
  Education

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

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