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If you think…

  
Education, Life
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If you think you are beaten, you are;
If you think you dare not, you don’t.
If you’d like to win, but think you can’t,
It’s almost a cinch you won’t.
If you think you’ll lose, you’re lost,
For out in the world we find
Success begins with a fellow’s will;
It’s all in the state of mind.

If you think you’re outclassed, you are;
You’ve got to think high to rise.
You’ve got to be sure of yourself before
You can ever win a prize.
Life’s battles don’t always go
To the stronger or faster man;
But soon or late the man who wins
Is the one who thinks he can.

Five Steps To Consistent Profits

  
  Education
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  1. Work on yourself and your personal issues so that they don’t get in the way of your trading. This step must be accomplished first; otherwise, it would interfere with each of the other steps.
  2. Develop a business plan as a working document to guide your trading. This business plan is not to raise money, which is the purpose of many business plans. Instead, it’s designed to be a continual work-in-progress to guide you throughout your trading career. The business plan actually helps you with all five of the steps. The plan also includes an overview of the big picture influencing the markets you will be trading and a method for keeping on top of those factors so that you will know when you are wrong.
  3. Develop several strategies that fit your view of the big picture and understand how each of these strategies will perform under various market types. The ultimate goal of this step is to develop something that will work well under every possible market condition. It’s actually not that hard to develop a good strategy for any particular market condition (including quiet, sideways). What’s difficult is to develop one strategy that works well under all market conditions—which is what most people attempt to do. (more…)

MCX Crude :Update

  
Analysis, Crude, Education
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Last close Rs.3460

Laxman Rekha at 3548.

Crossover/Close above this level will take to 3688-3735 level.

Support exist at 3444-3426 level.

Once breaks and closes below 3426 level….Watch panic upto 3373-3355 level.

Do u want to know Trend of any Metal /Commodity ..just send me [email protected]

Updated at 20:36/29th May/Baroda

The Universal Principles of Successful Trading – 5 Points

  
  Education
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A book review for Brent Penfold’s book “The Universal Principles of Successful Trading: Essential Knowledge for All Traders in All Markets”

This book is excellent for traders that are ready to accept its lessons. You need a foundation in trading to understand the importance of what the book is advising, and take the principles seriously with an open mind. Once you are through the rainbow and butterfly phase of trading, and realize that you will not be a millionaire in a year, this book will help you get focused and become serious about trading.

Here are the six universal principles of successful traders:

1). Preparation

Author Brent Penfold is in the minority, believing risk management is the #1 priority in trading. Brent believes that once you get your trading system and position size in place, you must use the amount you will risk on each trade to determine your risk of ruin. The book shows exactly how to figure this out using Excel. He believes that if your risk of ruin is not zero, then you will eventually blow out your account. Risking 1% to 2% of your capital in any one trade usually gives you a zero percent risk of ruin, but it also depends on your systems win/loss ratio.  Make sure to test any system with a minimum of 30 trades and then determine your risk of ruin. I would advise a larger sample size in multiple market environments. A trend following system that looks brilliant in a trending market may result in a 50% draw down in a choppy or range bound market.

2). Enlightenment

Your most important goal is to lower your risk ruin to zero. In trading, the trader with the best ability to cut losses short wins. Simple trading strategies work the best based on traditional support and resistance levels, while trading with the trend on either reversals or break outs. The 10% of winning traders in the market win by treading where others fear; buying on break outs when they first occur, and going short when a new low is made. Buying into key reversals when a security finds support or resistance, and reverses at the end of a monster trend, is also a tactic of winning traders.

3). Developing a trading style

You must choose your own personal style of trading: swing trading, trend trading, etc. You must also trade based on your chosen time frame: intraday, short term, medium term, or long term. (more…)

Over Trading

  
  Education
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overtradingOvertrading is a major obstacle for profitability. People tend to overtrade when they don’t have a plan for the trading day/week.
If overtrading is a major issue for professional traders, lack of discipline is a major issue for developing traders. (more…)

Stick to your game plan

  
  Education
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the-game-plan-poster-425Sticking to your game plan is the hardest thing to do as a trader.The reason it’s so hard is that it take strict discipline and an emotional detachment from the outcome.Knowing what to do and doing it are two seprate issues.Trading involves so many unforseen elements and market fores the mishaps and fuzzy thinking materialize even at the most advanced levels.The only way to trade suscessfully through this sea of uncontrollable elements is to have the discipline to stick to your game plan.Your plan is the shield that no market force can penetrate ,unless let it.

The main reason experienced traders lose is that they fail to follow their own rules.There are hundreds of reasons and excuses for deviating from a trading plan-for breaking your rules.In the long run ,the reasons make zero difference.In the end ,people are judged by their results ,not the quality of their excuses.In an unstructured environment with multiple sources of reason pulling you in different directions ,rules become the cornerstone for success.

A trading plan is predictable.It provides sources of reason given any number of existing circumstances.It filers out noise and encourages discipline.Remember that having a trading plan and sticking to it is invaluable.The simple recognition of this fact can provide the stimulas to adhere to your own plan.

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