Archives of “trades” tag

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Trading Less Is Better

  
  Education
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I think the secret is cutting down the number of trades you make. The best trades are the ones in which you have all three things going for you: fundamentals, technicals, and market tone. First, the fundamentals should suggest that there is an imbalance of supply and demand, which could result in a major move. Second, the chart must show that the market is moving in the direction that the fundamentals suggest. Third, when news comes out, the market should act in a way that reflects the right psychological tone

Dump The Loser!

  
  Education
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DumpI tend to lose patience very quickly whenever one of my trades stops trending. As soon as I get the signal, I will not hesitate to dump the loser. I don’t take it personally, it doesn’t affect me as long as I keep in mind that my money can be put to better use if I position it to take advantage of stocks that are trending. To me, it’s the fastest way that I know of to compound my capital.

Cutting your losses and going with the trend – emotionally

  
  Education
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There is the famous old adage that as a trader you should cut your losses short and let your winners run. 

The best are able to do this. 

BUT it’s a very easy thing to intellectualise and yet quite another thing to execute in the real world.  After all if it was so easy there wouldn’t be all the writers, books, blogs, tweets, coaches, mentors etc in the trading world.  They would be obsolete.

HOWEVER IT ALSO APPLIES TO LIFE AWAY FROM THE CHARTS.

The ego and subconscious are often key adversaries to us gaining flow in our lives and achieving abundance.  This is true in both trading and normal life.

If you are unwilling to accept you are wrong and move on it is all too easy to not keep your losses small.    (more…)

Success in Trading

  
  Education
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Success in your trading business is contagious. Having a plan for success, as well as following through and readjusting your goals over time, is highly important. Here are my rules for success:

  1. Success in trading is achieved by working on goals that are specific.
  2. Success is comfortable and positive, not exciting and emotional.
  3. The past is over and done with. I move forward!
  4. I complete trades according to the rules of my trading system. Doing this achieves success in my trading.
  5. Success means seeing my profit goals as well as my security in stops, and I know where my trade will be closed out at any time.
  6. I visualize myself as a master of market skills and as a profitable trader.

Trading Nuggets

  
  Education
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  • Remember that becoming a profitable trader is a journey, not just a destination. The perfect trader does not yet exist. Try to become a better trader each day and enjoy the progress you make. Concentrate on learning the craft of technical analysis and on improving your trading skills, rather than focusing solely on the amount of profit or losses in your trading.
  • Congratulate yourself and feel good about a trade when you have done what you were supposed to do, according to your trading plan–regardless of the profit or loss on the trade.
  • Don’t get overly excited about the winning trades or too depressed about the losing trades. Try to maintain an even keel and a professional outlook regarding your trading.
  • Do not expect certainty in a trade. You are looking for a preponderance of evidence, not proof beyond the shadow of a doubt.
  • The pain of standing aside and missing a good trade that your method told you to take is much worse than the pain of losing on a trade that you entered and exited properly and according to your trading plan. (more…)

Regulators to probe euro trades

  
Analysis, Economy, Education
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The regulatory fall-out from the Greek debt crisis grew on Wednesday as EU and US authorities said they would probe trades in the euro and the market in sovereign credit default swaps. European Commission officials said they would use a meeting as early as Thursday with banks and regulators to discuss regulation of trading in sovereign CDS, which have become politically contentious amid Greece’s financial crisis. The US justice department said it was also examining hedge fund trades against the euro.

Happy Diwali

  
Analysis, Education
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Happy Diwali & Happy New Year Dear Subscribers & Our Readers, We wish U great Diwali & Great Coming New Year.

  1. Quit letting trades go through your original stop loss, you were wrong, get out. When you start hoping and stop managing your stops you are losing money.
  2. Quit over trading, only take the very best entries and trade the very best stocks in your system.
  3. Quit making up stories about why you decided to hold your position instead of taking your stop when it was hit. trade your plan.
  4. Stop trading your opinions and start trading what the price action is saying.
  5. Stop following people in social media that cause you to trade badly and lose money.
  6. Stop looking at BLUE Channels  for trading and investing advice.
  7. Stop trading so big that you emotions are more involved in your trades than your mind.
  8. Disconnect your ego from your trading. You determine your risk size and entry the market chooses whether you win or lose.
  9. Quit riding an emotional roller coaster, your emotions should stay level when winning and losing. If not trade smaller.
  10. Quit buying falling knives and shorting rocket stocks, wait for confirmation and reversal before entering.
    Technically Your’s

    AnirudhSethiReport-Team/Baroda/India

Simply Put

  
  Education
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SimpleEven if you make a lot of mistakes in your trading business, you’ll still be net profitable at the end of the year if you simply do two things right; cut your losing trades as soon as they hit their stops and let your winners ride until there is a technical reason to sell. The challenging part, of course, is applying this in actuality, not only understanding it theoretically.

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