1. Many futures traders trade without a plan. They do not define specific risk and profit objectives before trading. Even if they establish a plan, they “second guess” it and don’t stick to it, particularly if the trade is a loss. Consequently, they overtrade and use their equity to the limit (are undercapitalized), which puts them in a squeeze and forces them to liquidate positions.
Usually, they liquidate the good trades and keep the bad ones.
2. Many traders don’t realize the news they hear and read has already been discounted by the market.
3. After several profitable trades, many speculators become wild and aggressive. They base their trades on hunches and long shots, rather than sound fundamental and technical reasoning, or put their money into one deal that “can’t fail.”
4. Traders often try to carry too big a position with too little capital, and trade too frequently for the size of the account.
5. Some traders try to “beat the market” by day trading, nervous scalping, and getting greedy.
6. They fail to pre-define risk, add to a losing position, and fail to use stops. (more…)
Archives of “Anirudh Sethi” tag
rssThe Seven Mistakes Novie Traders Make
MISTAKE ONE
Lack of Knowledge and No Plan
It amazes us that some people expect to trade the stock market successfully without any effort. Yet if they want to take up golf, for example, they will happily take some lessons or at least read a book before heading out onto the course. (more…)
Just follow Trend and Mint Unexpected Money
No one can predict a market trend, you can only react to them! Trend following never anticipates the beginning or end of a trend. It only acts when the trend changes. However, there is no need to figure out ‘why’ a market is trending — just follow it. You don’t need to understand electricity to use it.
Just Think :How many of u Bought or Traded in Reliance with levels ?
-Stock never broke :960 & Nifty Future support was 4898-4882 (Before Budget ,I had written)
Always Remember ,Writing/Saying and doing Bla Bla is very easy.Giving comments on Blogs…..(Those who are not earning or Failures will write comment with using Bad Words)But our AIM is to Mint Money from Market.End result should be your Balance Sheet on Plus side.
Updated at 7:27/22nd March/Baroda
Shanghai Composite :Crashed as per our Expectation
Refresh Your Memory (Those who Bark/Those who Trade Blindly )
On 8th May Written :Wave 3rd to create panic
Click here and Read My written targets were 2595-2523
On 7th May it closed at 2688 level.And Today it crashed to close at 2559 level.
-Never Trade Blindly ,Stocks can be Manipulated not Indices….remember my words.
Technically Yours
Updated at 14:25/17th May/Baroda/India
1000 Tips & Tricks For Traders -Anirudh Sethi
Nickel ,Copper ,Lead :Update
Support at 1000-995 level.
-Break and close belwo 995 will take to 980-975 in panic.
-Don’t jump & Buy.
-Will update more to our Subscribers
Below 337,Problem for Bull’s.
-Now if breaks 335.50 then I see crashing upto 331-329.50 level.
Your Stoploss 345.
Very soon will kiss 320 or 290 level too.
Don’t trade Blindly ,Get Intraday or Swing Trading levels on Phone.
Break below 98 with volumes will take to 94-93 level.
Any Moment ,Any time …I see panic selling.
I will update more about Precious ,Base ,Agro Commodites ,Crude and N.Gast to my Subscribers
Updated at 1:50/23rd March/Baroda
ICSA :Open Challenge ;Target 194-204
Your Stoploss Rs.178-177
Today ,I want this stock to trade above 184.50 with volumes for 5/10 minutes.It’s a challenge.Whole India will run.Forget world Market.
-In first hr itself or Today Intraday will kiss 190-194 level.
-Minor Hurdle at 188 (No value )
-Pls Don’t ask reasons.Just watch Inverse Head & Shoulder formation on chart.
-Fiery Intraday move on card.Yes u can Buy 10-100-1000 lots.
-Before Feb End will see stock kissing Rs.250+ level.
No if & But ,Mind blowing chart.
-Expanding Wedge +Inverse Head & Shoulder will favour Bull’s.
Now spare 5 minutes and see my Research work :
Govt. of Singapore increases stake in ICSA (India) to 7%.
The Government of Singapore Investment Corporation Private Limited (GIC) is a
sovereign wealth fund established by the Government of Singapore.
TTM EPS RS 32 at Rs 183 ICSA trades at P/E 5.7 only
Applying a reasonable P/E discounting of 8, the scrip can appreciate to Rs.250 in the short-to-medium-term
Fii sources > Expected EPS fy 10 =Rs 36
SALES =1100CR MCAP =860CR
Don’t miss to Read ……..Pls Pls Pls !!
The company has Rs 2,200 crore strong order book to be executed within next two years. Of this, the infrastructure services account for Rs 1,400 crore.
ORDER BOOK more than the Market Cap :THIS HAPPENS ONLY IN INDIA
Increased allocation of Government projects under Rajiv Gandhi Grameen Viduytikaran Yojana (RGGVY) to 7000 crores up by 27% will have see significant
orders coming in for ICSA.
Apart from Chart /Fundamentals :
On street are company to come out with Bonus in ratio of 1:1.I don’t care for Rumours…..Read chart and mint money ..Nothing else.
-But ,chart pattern indicates price of 250…so something is cooking and somebody knows……..let’s see what happens !!
Updated at 9:05/21st Jan/Baroda
The 10 Cardinal Rules Of Trading
The Greatest Traders
Cutting Losses
I simply cut my losses and by doing so kept them small. I’ve had my share of bad decisions in my trading career and keeping losses small in order to avoid huge losses is the toughest part.
Why is that so? From a psychological point of view nobody wants to sell at a loss as in most situations in life making mistakes and admitting them is associated with being a loser. That’s why most people prefer sticking to a losing position. They don’t want to be labeled a loser. So they start hoping their position will turn around and end up being a huge winner. The stock then keeps tanking. Then they hope they will be able to sell for a break even. The stock then goes down even more. That’s when being objective and balanced isn’t possible anymore. Losses have become huge and they are trapped.
The cost is simply huge. You lost money. You lost time. There’s an opportunity cost as well as during that time other stocks would have made you a profit. You lost huge amounts of energy as you couldn’t get this stock out of your mind.
Notice I’ve made ample use of the word ‘huge’. Avoid huge losses at all cost. Avoid thinking in terms of huge gains as well. Stay balanced. Stay focused and calm.