on Saturday, November 29, 2014
1. You do not have to diversify with multiple stocks for
equity exposure, the index is already diversified.
2. The risk of any one stock having something catastrophic
happen will not really hurt your trade. No one stock has more than a 3%
weighting.
3. The Nifty Future is much harder to manipulate than
individual stocks due to its size and volume of trading.
4. Nifty Future move much more smoothly around support and
resistance areas than most individual stocks.
5. Nifty 50 has its own survivor bias replacing it holding of
falling stocks with new ones that are growing in market capitalization.
6. You do not have to deal with earnings surprises like in
individual stocks.
7. Due to the indexes much lower volatility you can trade
larger position sizes with much less risk.
8. The Nifty options are very liquid with very tight big ask
spreads.
9. With this index you can trade the trend of the stock market
itself which is a
much
broader bet than any one company or sector.
10. Margin required for trading Nifty Future is quiet less as
compared to Stock Futures
· Poor trading practice, poor execution, poor risk management and poor trade management, is responsible for much emotional distress. Trading affects our psychology as much as psychology affects our trading.
· Identify your greatest fears and face them as directly as possible, so that you find out they are not as powerful as they seemed.
· We are all afraid of things and this is a good solution to overcoming our fears, because our fears are never as bad as they seem. We make them out to be horrible, but when we finally face our fears we discover that they aren’t so bad.
· Getting rid of our fears one by one will make us a stronger people and will allow us to strengthen others.
· Thinking positively or negatively about performance outcomes will interfere with process of performing. When you focus on the doing, the outcomes take care of themselves.
on Friday, November 28, 2014
1. All successful traders use methods that suit their personality; You are neither Warren Buffet nor George Soros nor Jesse Livermore; Don’t assume you can trade like them.
2. What the market does is beyond your control; Your reaction to the market, however, is not beyond your control. Indeed, its the ONLY thing you can control.
3. To be a winner, you have to be willing to take a loss;
4. HOPE is not a word in the winning Trader’s vocabulary;
5. When you are on a losing streak — and you will eventually find yourself on one — reduce your position size;
6. Don’t underestimate the time it takes to succeed as a trader — it takes 10 years to become very good at anything;
7. Trading is a vocation — not a hobby.
8. Have a business/trading plan.
9. Identify your greatest weakness, Be honest — and DEAL with it.
10. There are times when the best thing to do is nothing; Learn to recognize these times.
11. Being a great trader is a process. It’s a race with no finish line.
12. Other people’s opinions are meaningless to you; Make your own trading decisions.
13. Analyze your past trades. Study what happened to the stocks after you closed the position. Consider your P&L game tapes and go over them.
14. Excessive leverage can knock you out of the game permanently.
15. The Best traders continue to learn and adapt to changing conditions.
16. Don’t just stand there and let the truck roll over you.
17. Being wrong is acceptable — staying wrong is unforgivable.
18. Contain your losses.
19. Good traders manage the downside; They don’t worry about the upside.
20. Research reports are biased.
21. Knowing when to get out of a position is as important as when to get in.
22. To excel, you have to put in hard work.
23. Discipline, Discipline, Discipline !
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