rss

Look Inside Yourself

One trader wrote in that he was in a slump and wondered if he should switch markets or find another indicator.

Do you ever find that you also want to blame something outside yourself?

One of my favorites used to be blaming ‘the system’ – the system is rigged against me: the brokers are the only ones getting rich, robbing me on these bid/asked spreads, hunting all my stops, etc.

When you blame an external situation, you are giving up control, and instead letting yourself be controlled by outside events. This converts you from a proactive trader into a reactive trader. Or a winner into a whiner.

If you are reacting after the fact in the markets, you are then letting your emotions start to control you, instead of planning how you will react to any set of circumstances.

You know how letting emotions control you turns out in the markets. You go broke.

You must believe that you control your own destiny. If you are not getting the results you expect of yourself, look inside yourself.

Start analyzing your actions and behavior. Are you hanging on to losses too long? Are you cutting profits too soon? Are you having trouble pulling the trigger only to watch in frustration as your trade wins without you?

These and other frustrations should clue you in that you need to fix some element of your trading plan. Evaluate your present situation, and if it needs to change, take decisive action and change it.

Self Observation and feedback

safety6qe2Three questions to ask at the start of the trading day:

Am I bringing baggage to the day’s trade? Am I carrying over frustrations from losing money or missing opportunity? Am I feeling particular pressure to make winning trades? Am I locked into a view of markets because those views haven’t been paying me?

Am I prepared? Have I identified significant price levels for the day? Have I gained a feel for how various markets have been trading overnight? Do I know if economic reports are scheduled for the day and what the expectations are?

What am I working on? Do I have goals for the day? What have been the mistakes I’ve been making that need to be corrected? What improvements have I made that I want to cement? What kinds of trades have been working best for me, and am I prepared to actively look for those?

The idea is to become a good self-observer!

Anger

As traders, fear and greed are the two emotions that we commonly handle in our trading decisions.

But I believe another emotion that we also sometimes experienced would be – anger.

Most traders have learned to be calm and sensible during trading. But there would certainly be times times when we fumed at missing out a fantastic trade, for not buying more contracts of a great trade, or frustrated for committing that same trading blunder again.

We would blame just about anything or anyone when our trading suffered. Somehow we didn’t realize that the anger have originated from us.

I recently read a book called “Zero Limits” co-written by Dr Joe Vitale & Dr Hew Len. The book was quite an eye-opening read. It mentioned that we are the one who are fully responsible for any circumstances which are happening within & around us.

When we encountered another person pouring out his or her frustrations, whether they were meant for us or not, we should accept that we were partly responsible for that happening, since his or her frustrations had come into our lives.

Naturally, we are responsible for our own anger too.

The way to resolve this would be, strange it may sound, is to keep cleansing ourselves by constantly repeating the phrases “I love you”, “I’m sorry”, “Please forgive me” and “Thank you” to ourselves.

According to the book, these are simple but powerful words that we convey to the Divine. We connect to the Divine by expressing our love and gratitude to him. At the same time, we seek the Divine’s forgiveness of our wrong doings.

Saying these 4 phrases will cleanse the memories of greed, fear and anger associated with anything (including trading) as we give in to the Divine to handle the situation for us.

We would experience a peace of mind that the Divine is taking care of us. Another positive outcome of cleansing ourselves is that we are now open to receive the inspirations from the Divine for us to act upon.

I encourage you to read more about this ancient Hawaiian practice called Ho’oponopono from “Zero Limits” to experience this positive feeling.

I hope that in time you will gradually banish your anger not only in your trading but also in other parts of your life.

“I love you”, “I’m sorry”, “Please forgive me”, “Thank you”.

Five Qualities For Successful Trader

  1. Capacity for Prudent Risk-taking.The young successful trader is not afraid to go after markets aggressively when the opportunity presents itself.
  2. Capacity for Rule Governance. The young successful trader has the self-control to follow rules in the heat of battle, such as rules of position sizing and risk management.
  3. Capacity for Sustained Effort.The trader uses productive time to do research, preparation, work on himself, outside of market hours.
  4. Capacity for Emotional Resilience. All young traders will lose money early in their development and experience multiple frustrations. The successful ones will not lose self-confidence and motivation in the face of loss and frustrations.
  5. Capacity for Sound reasoning. The successful young trader exhibits an ability to synthesize data and generate market and trading scenarios.

THE STOCK MARKET IS DESIGNED TO FRUSTRATE

 

Our frustration is greater when we have much and want more than when we have nothing and want some.  – Eric Hoffer
Most plans are just inaccurate predictions. – Ben Bayol

While technical analysis is a wonderful tool, traders who abuse it will lose to a market designed to frustrate even the best laid plans. 

-Last week ,We had written on Friday we will see unexpected level.It made High of 6182.On Monday we had written either Today or Tuesday ….Mkt will reverse !!

-Our Hurdle-Laxman Rekha was :6231 (It kissed 6208 ,6210 ) and crashed.

-On Monday written sell everything with stop of 6231 ,Same on Tuesday……!!

-Wed ,Thur & Today too…We were Highly Bearish in NF ,BANK NF ,Bank Stocks ,Fertilizer Stocks and Yesterday written :Sell AUTO Stocks !

-What happened u all know !

Today our Target below 6066 was of 5950 level !!

Have u Read our Bank NF levels ??No……U had not read !!

-Do u What happened ??It kissed 11040 level !!

Today During Trading hrs ,Written to Buy NF with stoploss of 5980- 5950.

It was mentioned not breaksing 5980 & remains above 6010 will create fire work !!

-So your stoploss was of 25-30 points !!

Now if u are not able to take risk of  30 points was first support and there after 5950 was rock solid last support.

-Don’t act smart ,If u had bought had 6010 level and stoploss was triggred at 5980…Risk was 30 points and if u had hold upto 5950 then u had lost Rs.60 points maximum……Below 5980 it took 15 minute to break 5950 level.

Same Happened with Bank NF too !

Here we track every moment of market.Don’t think writing comments wiill give u something.Stoploss was triggred (that too u all traded blindly )read again…our Intraday update.

-Don’t worry about us.From 6200 to 6000 level….nobody sold NF ,Bank NF ,Bank Stocks ,Auto Stocks……just losing 30-40 points and started doing bla-bla.Next time u post comment or write …do mention your contact number !!

Technically Yours/ASR TEAM/BARODA

Five qualities for Successful Traders

secrets_successful_trader

  1. 1)Capacity for Prudent Risk-taking.The young successful trader is not afraid to go after markets aggressively when the opportunity presents itself.
  2. 2)Capacity for Rule Governance. The young successful trader has the self-control to follow rules in the heat of battle, such as rules of position sizing and risk management.
  3. 3)Capacity for Sustained Effort.The trader uses productive time to do research, preparation, work on himself, outside of market hours.
  4. 4)Capacity for Emotional Resilience. All young traders will lose money early in their development and experience multiple frustrations. The successful ones will not lose self-confidence and motivation in the face of loss and frustrations.

5)Capacity for Sound reasoning. The successful young trader exhibits an ability to synthesize data and generate market and trading scenarios.