How to Control Your Emotions When You Trade

When we speak of “The Trader’s Mindset” what are we really talking about? Many of them often ask me this question and we talk about it a lot with traders I mentor.

When we trade the markets we approach the markets each and every day with a psychological mindset or set of beliefs and emotions. New traders often enter trading with beliefs about trading and the markets that simply do not apply to the realities of trading. This is why new traders get into trades and can’t get out or don’t know when to take profits or get out at the bottom and get in at the top of markets. In other words they make bad trades because they are trading from inaccurate beliefs and become subject to their emotions of fear and greed.

With proper education, experience and direction these traders can turn their trading around. Usually new traders realize after a while of experiencing large losses or working very hard and still losing that they need to change. What they thought would work does not and they recognize that their emotions are working against them and not for them in trading.

Once they get to this point, traders either quit trading or seek help to overcome their trading handicaps. If you find yourself at this point, you need to seek help from someone who is a successful trader. The help you get or don’t get at this time will seal your fate as a trader. We teach you the importance of controlling yourself when trading. We call this developing “The Trader’s Mindset” to think as a trader should and not become subject to your negative emotions. In order to be successful in trading, you must not fall prey to the very emotions you are trying to exploit. In short term trading when we win, someone must lose. This is a hard cold fact of short term trading! And the successful traders usually are calm and very methodical in their trading and making money from other traders who react emotionally to market events and are therefore losing money.

“The Trader’s Mindset” knows how emotions effect trading and learns how to deal or master their responses to their emotions as well as other trader’s emotions. So, how to we develop “The Trader’s Mindset”? To begin with use stops and stick with them! By using stops you are getting out of the market on your terms before your emotions have a chance to cause you problems by staying in the trade too long and then getting out because you can’t stand another dollar of loss – which for example is usually the point where you possibly should be getting ready to enter your next trade. The profitable trader usually can calmly follow the market where ever it goes thus exploiting those traders getting out of the market on emotions.

Technical Analysis Of EXIDE INDUSTRIES (12-12-14)

Technical Analysis Of EXIDE INDUSTRIES :

Sell Exide For A Target OF 161. Stoploss At Your Own Risk Levels.

DISCLAIMER:

Investing and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My recommendations are technical analysis based on & conceived from charts. The information provided is not guaranteed as to accuracy or completeness. This is my personal view only.

Please consult your adviser or consultant or analysts before investing and/or trading. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by any.

The Tortoise vs. The Hare – A Trading Metaphor

Everyone knows the story of the Tortoise and the Hare, but what you might not know is that it can be a very effective metaphor to describe the differences between winning and losing traders. Like the Hare, you probably experienced a lot of excitement and success right out of the gate, as you began trading your first live account. However, because you probably did not pace yourself by being consistent in your approach, you saw your early success evaporate as time went on, just as the Hare did. The Tortoise was much slower than the Hare, but because he was consistent and unemotional, he eventually won the race as you probably know. Thus, your goal as a trader, is to trade more like the Tortoise and less like the Hare, because that is how the trading game is won…

Are you a “Tortoise” or a “Hare” in the market?

In the fable of The Tortoise and the Hare, the Hare begins the race by ridiculing the slow-moving Tortoise and then leaving him behind in the dust as he sprints off from the starting line. The Tortoise, unemotional but sure of himself, begins the race in a slow but consistent manner, pacing himself from the start. The Hare gets distracted by other animals along the way, stopping to show off his speed as he tries to impress some lady rabbits (in the Disney video version) and as we all know, stopping for a nap along the way as well. Unfortunately for the Hare, this inconsistency and emotion gets the better of him and ultimately is the reason why he loses to the much slower Tortoise, even though he started with a huge physical advantage. The Tortoise may have had a disadvantage physically, but because his mindset was more consistent and in-sync with what it took to win the race, he out-lasted the haphazard and emotional Hare, and ultimately made it across the finish line first.

This fable of the Tortoise and the Hare really does a good job of describing the primary differences between traders who consistently lose money in the market and those who consistently make money. Traders who trade with a lot of inconsistency, haphazardness and emotion, are the ones who struggle and suffer through the pain of continuously blowing out their trading accounts, these traders are trading as if they are the “Hare”. Traders who take a slower and more consistent approach, like the Tortoise, tend to do much better in the long-run and don’t experience the severe emotional and financial ups and downs as the “Hare” traders.

Anyone who has followed my blog for a while knows that I am a huge proponent of the low frequency trading model. It is a pretty well studied fact that day-traders and other high-frequency traders make far less money over the course of their trading careers than lower frequency traders who take a slower and more consistent approach, like the “Tortoise”. In fact, for most people, taking a low-frequency approach to trading and trading like the Tortoise, is really the only chance they have at making significant money in the market over the long-run.

Trading is a marathon, not a sprint

Note, in the section above I ended with talking about the “long-run”, this is a key point in this whole lesson. It is not difficult to get lucky and hit a few nice winners early in your trading career, just as the Hare got off to a good start against the Tortoise. However, what differentiates winning and losing traders is not the ability to get lucky or use up all their trading capital in the first month of live trading, but the ability to remain disciplined and patient even in the face of constant temptation to over-trade and over-leverage their account, in other words, you need to pace yourself as you trade.

The Tortoise paced himself in the race against the Rabbit, and this ultimately allowed him to beat the Rabbit, who didn’t prepare properly and who clearly under-estimated the importance of mindset over ability. The Hare blew all his energy in the early-going (trading money) and got over-confident (very common among struggling traders), so much so that he literally fell asleep halfway through the race, which ultimately led to him losing to the much slower Tortoise.

Many traders tend to focus too much on the short-term, treating their trading as if it is some all-out sprint to the finish line. When they hit upon a couple of winners, they tend to then over-estimate the role that their trading ability played and underestimate the importance of remaining consistent and not doubling up their risk on the next trade. Traders tend to do the most damage to themselves right after a big winning trade or multiple winning trades. Like the Rabbit, they become frantic and over-excited, instead of remaining calm and collected like the Tortoise. This typically results in them over-estimating their trading ability, which causes them to start cranking up their risk per trade and over-trading, also known as burning up your trading capital.

Just as the Tortoise did, you have to preserve your energy to win the trading race. In other words, you need to preserve your trading capital for high-probability setups, rather than blowing it on random gambles in the market. Furthermore, I want you to think of trading as a marathon, not a sprint, because you need to pace yourself if you want to make it through to the land of successful trading and win the “marathon”. “Sprinting” has no place in the professional trader’s trading approach; slow and steady truly does win the marathon of trading.

The Tortoise reaped the big reward

Despite the odds seemingly stacked against the Tortoise at the beginning of the race, he ultimately takes home the trophy. This is exactly the same as two traders starting out with different size trading accounts, one large, one small and the trader with small account might find after 3 years of trading he has a lot more money in his account than the trader who started with the large account. This happens all the time in the market, and it’s because it doesn’t matter how much money you have, what matter is your ability to trade and your ability to manage your emotion and your money. Consistency always wins in the end.

As I discussed previously, you need to preserve your trading capital for the obvious trade setups, and not blow it all soon after you star trading live. The Hare expended too much energy in the early going, whereas the Tortoise stayed consistent. You need to save your money like the Tortoise so that you can stay in the game long enough to hit enough big winners so that you end the year profitable. Many traders do so much damage to their trading accounts early in the year that they have no chance of ending the year in profit. You need to try to have less trades but more certainty in the trades you do take, think about eventually becoming a “baller trader” with lower overall risk and higher rewards. This is how you make money over the long-run, it is not done by trading constantly until your money is gone. If you do this you will surely get passed up by trader who had smaller accounts but who had a better trading mindset and who understood the importance of trading with consistency.

Reptiles rule

Crocodiles and Tortoises can both teach us a lot about trading. We need to be patient and stealthy as traders, like a Croc, waiting for the easy “prey” and then acting on it with confidence. The theme is clear here; slow and steady wins the race. If you do a bit of research on both Crocodiles and Tortoises, you will see that both have been around since the time Dinosaurs walked the Earth; hundreds of millions of years ago. This clearly tells us that their slow yet consistent approach to life is one that pays off with great rewards in the long-run.

Trading with a Small Account

Every trader wants to trade a well-funded trading account (i.e. a 1,000,000 account), but very few of us actually get to do this. Most traders are stuck with trading relatively small accounts (i.e. just covering the required margin). Trading a small account requires very strict risk management (i.e. money management) because there is no buffer against mistakes or any unexpected losses. For example, if a trading account only covers its required margin by 5000, and it takes a 6000 loss, the account will become untradeable until additional money is deposited.

Trading a Small Account

Trading a small (or under capitalized) account is much more difficult than trading a large account. Large accounts are buffered against mistakes, unexpected losing streaks, and sometimes even bad traders, but small accounts have no such buffer. Large accounts can be used to trade any available market, but small accounts can only be used to trade markets with low margin requirements and small tick values. Large accounts also allow more flexible trading (e.g. multiple contracts), whereas small accounts are very limited in the trade management strategies that they can use.

In addition, trading a small account has psychological issues that make it even harder to trade the account well. For example, when a trader knows that they can only afford a single losing trade before their account becomes un tradeable (because it will no longer cover its required margin), the pressure to make a profitable trade is enormous. If the trader handles this pressure well, this might not be a problem. However, even the best traders have losing trades, and there is nothing that can be done to avoid losing trades, so this is not something that the trader has any control over, which adds to the psychological stress.

Advice for Small Accounts

With all of the disadvantages, it appears as though it is not possible to trade a small account profitably. This is not the case, and small accounts are traded profitably by many traders (including professional traders). The following advice is provided from the perspective of under capitalized accounts, but the advice actually applies to all trading accounts (even the $1,000,000 accounts).

·        Trade Using Leverage – Trading using leverage allows small account traders to trade markets that they cannot trade using cash. For example, trading individual stocks directly requires approximately 25% to 30% of the trade’s value in cash (assuming a typical margin requirement). However, trading the same underlying stock using the options or warrants markets (both highly leveraged markets), only requires approximately 15% of the trade’s value in cash. Note that leverage should not be used to increase the trade’s size (i.e. the number of shares), but should only be used to reduce the trade’s margin requirements. 

·        Trade Conservatively – Traders with well-funded accounts have the luxury of making trades with high risk (e.g. large stop losses relative to their targets). Trader with small accounts must be more cautious, and make sure that their risk to reward ratio, and their win to loss ratio are being calculated and used correctly.

·        Adhere to the One Percent Risk Rule – Trading in accordance with the one percent risk rule provides a small account with the same buffer (against mistakes, unexpected losses, etc.) as a large account. Many professional traders abide by the one percent risk rule regardless of the size of their trading accounts, because it is a very effective risk management technique.

Some traders adamantly state that under capitalized trading accounts cannot be traded successfully. This is not true. Small trading accounts may be more difficult to trade successfully, but if they are traded correctly, there is no reason why small trading accounts cannot be profitable.

By controlling the stress that is often associated with under capitalization, focusing on risk management, and correctly applying their risk management techniques (especially the one percent risk rule), small account traders can make a good living from their trading, and may be able to turn their small account into a large account.

Why Do Traders Lose in Financial Market

If you’ve been trading for a long time, you no doubt have felt that a monstrous, invisible hand sometimes reaches into your trading account and takes out money. It doesn’t seem to matter how many books you buy, how many seminars you attend or how many hours you spend analyzing price charts, you just can’t seem to prevent that invisible hand from depleting your trading account funds.

Which brings us to the question: Why do traders lose? Or maybe we should ask, “How do you stop the Hand?” Whether you are a seasoned professional or just thinking about opening your first trading account, the ability to stop the Hand is proportional to how well you understand and overcome the Five Fatal Flaws of trading. For each fatal flaw represents a finger on the invisible hand that wreaks havoc with your trading account.

Fatal Flaw No. 1 — Lack of Methodology

If you aim to be a consistently successful trader, then you must have a defined trading methodology, which is simply a clear and concise way of looking at markets. Guessing or going by gut instinct won’t work over the long run. If you don’t have a defined trading methodology, then you don’t have a way to know what constitutes a buy or sell signal. Moreover, you can’t even consistently correctly identify the trend.

How to overcome this fatal flaw? Answer: Write down your methodology. Define in writing what your analytical tools are and, more importantly, how you use them. It doesn’t matter whether you use the Wave Principle, Point and Figure charts, Stochastics, RSI or a combination of all of the above. What does matter is that you actually take the effort to define it (i.e., what constitutes a buy, a sell, your trailing stop and instructions on exiting a position). And the best hint I can give you regarding developing a defined trading methodology is this: If you can’t fit it on the back of a business card, it’s probably too complicated.

Fatal Flaw No. 2 — Lack of Discipline

When you have clearly outlined and identified your trading methodology, then you must have the discipline to follow your system. A Lack of Discipline in this regard is the second fatal flaw. If the way you view a price chart or evaluate a potential trade setup is different from how you did it a month ago, then you have either not identified your methodology or you lack the discipline to follow the methodology you have identified. The formula for success is to consistently apply a proven methodology. So the best advice I can give you to overcome a lack of discipline is to define a trading methodology that works best for you and follow it religiously.

Fatal Flaw No. 3 — Unrealistic Expectations

Between you and me, nothing makes me angrier than those commercials that say something like, “…5,000 properly positioned in 8000 Call Option can give you returns of over 40,000…” Advertisements like this are a disservice to the financial industry as a whole and end up costing uneducated trader a lot more than 5,000. In addition, they help to create the third fatal flaw: Unrealistic Expectations.

Yes, it is possible to experience above-average returns trading your own account. However, it’s difficult to do it without taking on above-average risk. So what is a realistic return to shoot for in your first year as a trader — 50%, 100%, 200%? Whoa, let’s rein in those unrealistic expectations. In my opinion, the goal for every trader their first year out should be not to lose money. In other words, shoot for a 0% return your first year. If you can manage that, then in year two, try to beat the Nifty or the Sensex. These goals may not be flashy but they are realistic, and if you can learn to live with them — and achieve them — you will fend off the Hand.

Fatal Flaw No. 4 — Lack of Patience

The fourth finger of the invisible hand that robs your trading account is Lack of Patience. I forget where, but I once read that markets trend only 20% of the time, and, from my experience, I would say that this is an accurate statement. So think about it, the other 80% of the time the markets are not trending in one clear direction.

That may explain why I believe that for any given time frame, there are only two or three really good trading opportunities. For example, if you’re a long-term trader, there are typically only two or three compelling tradable moves in a market during any given year. Similarly, if you are a short-term trader, there are only two or three high-quality trade setups in a given week.

All too often, because trading is inherently exciting (and anything involving money usually is exciting), it’s easy to feel like you’re missing the party if you don’t trade a lot. As a result, you start taking trade setups of lesser and lesser quality and begin to over-trade.

How do you overcome this lack of patience? The advice I have found to be most valuable is to remind yourself that every week, there is another trade-of-the-year. In other words, don’t worry about missing an opportunity today, because there will be another one tomorrow, next week and next month…I promise.

Fatal Flaw No. 5 — Lack of Money Management

The final fatal flaw to overcome as a trader is a Lack of Money Management, and this topic deserves more than just a few paragraphs, because money management encompasses risk/reward analysis, probability of success and failure, protective stops and so much more. Even so, I would like to address the subject of money management with a focus on risk as a function of portfolio size.

Now the big boys (i.e., the professional traders) tend to limit their risk on any given position to 1% – 3% of their portfolio. If we apply this rule to ourselves, then for every  Rs 50,000 we have in our trading account, we can risk only 500 – 1500 on any given trade. Stocks might be a little different, but a 50 stop in Nifty , which is one point, is simply too tight a stop. A more plausible stop might be five points or 10, in which case, depending on what percentage of your total portfolio you want to risk, you would need an account size between 150,000 and 500,000.

Simply put, I believe that many traders begin to trade either under-funded or without sufficient capital in their trading account to trade the markets they choose to trade. And that doesn’t even address the size that they trade (i.e., multiple contracts).

To overcome this fatal flaw, let me expand on the logic from the “aim small, miss small” movie line. If you have a small trading account, then trade small. You can accomplish this by trading fewer contracts, or trading Nifty contracts or even stocks in cash market. Bottom line, on your way to becoming a consistently successful trader, you must realize that one key is longevity. If your risk on any given position is relatively small, then you can weather the rough spots. Conversely, if you risk 25% of your portfolio on each trade, after four consecutive losers, you’re out altogether.

Break the Hand’s Grip

Trading successfully is not easy. It’s hard work…damn hard. And if anyone leads you to believe otherwise, run the other way, and fast. But this hard work can be rewarding, above-average gains are possible and the sense of satisfaction one feels after a few nice trades is absolutely priceless.

To get to that point, though, you must first break the fingers of the Hand that is holding you back and stealing money from your trading account. I can guarantee that if you attend to the five fatal flaws I’ve outlined, you won’t be caught red-handed stealing from your own account.

The Risk-Reward Ratio

Know your Risk: The Risk-Reward Ratio

Risk is a part of trading. Every trade carries a certain level of risk. Every trader must know the amount of risk that is being assumed on each trade. Knowing the amount of risk on each trade is one way to limit it and to protect your trading account. The best way to know your risk is to determine the risk-reward ratio. It is one of the most effective risk management tools used in trading.

The risk-reward ratio is a parameter that helps a trader to determine the level of risk in a trade. It shows how much a trader is risking versus the potential reward (or profit) on a trade. While this may seem simplistic, many traders neglect taking this step and often find that their losses are very large.

How to Determine the Risk-Reward Ratio?

The first step is to determine the amount of risk. This can be determined by the amount of money needed to enter the trade. The cost of the currency multiplied times the number of lots will help the trader to know how much money is actually at risk in the trade. The first number in the ratio is the amount of risk in the trade.

The reward is the gain in the currency price that the trader is hoping to earn from the currency price movement. This gain multiplied times the number of lots traded is the potential reward. The second number in the ratio is the potential reward (or profit) of the trade.

Examples

Here are a few examples of the risk-reward ratio:

·        If the risk is 200 and the reward is 400, then the risk-reward ratio is 200:400 or 1:2.

·        If the risk is 500 and the reward is 1,500, then the risk-reward ratio is 500:1500 or 1:3.

·        If the risk is 1,000 and the reward is 500, then the risk-reward ratio is 1000:500 or 2:1.

What is a Good Risk-Reward Ratio?

The minimum risk-reward ratio for a Forex trade is 1:2. However, a larger ratio is better. An acceptable risk-reward ratio for beginning traders is 1:3. Any number below 1:3 is too risky so the trade should be avoided. Never enter a trade in which the risk-reward ratio is 1:1 or the risk outweighs the reward.

Many experienced trader will only enter trades in which the risk-reward ratio is 1:5 or higher. This requires that the trader wait for a trade with this ratio, but the reward is worth it. A higher risk-reward ratio is a good idea in case the currency does not make the anticipated price movement. However, if the trader uses a lower risk-reward ratio, there is very little room for smaller price movements and the amount of risk will increase.

The risk-reward ratio is an important risk management and trading tool. It is important for beginning traders to take the extra time to perform this task because it can help to minimize risk in every trade. Waiting for the right risk-reward ratio can take a long time. However, the benefits of waiting for a higher risk-reward ratio are worth the effort and patience. You will know your risk and know your potential profit. Most importantly, you will know whether the trade is worthy of your money.

Make Sure You’re Trading, Not Gambling

Trading can be a lot like gambling if you let it be so. Some of the best traders in the world are also great poker players, but there’s a big difference between how you trade and how people gamble.

How can trading be gambling?

What I’m talking about is the average trader out there that makes references to things such as “Well, I’m taking high-risk trades, but I keep my stops really tight.”

Also, “I’m playing with house money.” That’s one I hear all the time and it just grinds my gears every time I hear that because they make these analogies to gambling almost subconsciously; they don’t even realize they’re doing it.

Let’s talk about that “house money” issue. Is it really house money, or is it money that you worked hard to earn? You pay for subscription services; you’ve read lots of books; you’ve subscribed to great trader interview sites. There are lots of tools out there that people can use to grow their knowledge. You’re paying for that.

Then, of course, the school of hard knocks, where you do take losses and drawdowns during your trading development and career.

So, by the time you finally start to see some consistent profitability, are you really playing with house money, or money that you earned? Is that money just play money, or is that money you’re going to pay your bills with, or grow your account with and be able to trade more size down the road.

It’s not really house money when you have a successful morning. That really doesn’t allow you to take higher-risk trades in the afternoon, and I see that phenomenon over and over.

For instance, I see a lot of people say “I make money in the morning, but I lose money in the afternoon.” As I sit and talk with those types of students, I often find that they do have a successful morning, and then their attitude changes. “Well, now I can double up, triple up, and take a lot more risk because it’s all house money.” They don’t treat it like their own.

It’s so important for people to understand that if you’re making money, that is your money and you need to protect it.

I find that the best professional traders, their mentality is not about how much money they can make on the next trade. It’s about protecting their money and thinking about how much money they could lose on the next trade.

So, that’s one key instance right there, and then the whole concept of risk and risk management. What I find happens with a lot of traders is that they say “Well, yes, I’m taking a lot of risky trades and I’m taking a lot of momentum-based trades. I don’t really have a science behind what I’m doing. I just see the markets shooting real fast in one direction or the other and I chase after that. But that’s okay because I’m keeping my stops tight.”

Well then of course what I see is just like a credit card statement for a person who keeps shopping, the credit card bill comes and you’ve got to pay the piper and you owe this big drawdown, this big debt.

Same thing with these traders; no individual trade is blowing them out, but at the end of the month, it’s death by 1000 cuts because you’ve still got to pay your commissions and all those little losses add up to big losses.

What has to happen there is the mindset has to change. Learn that no, it’s not acceptable just because I’m keeping my stops tight to take a bunch of high-risk trades.

The focus really has to be how can I minimize losses from the very beginning, and keeping stops tight may be perfectly fine, but keeping stops tight on higher-probability trades, and not just saying “Well, I know this is really risky and that’s my style, but I’m keeping my stops tight.”

In the end, ask yourself what is that doing to your trading account month over month, and if you’re seeing continued draw downs, you need to have a mind shift and focus on higher-probability set-ups.

And it also seems to me that if you’re guessing on your trades without having any sort of edge, that again pushes your trading into the gambling arena.

It pushes you into the gambling arena, and then you’re clearly not journaling. You probably don’t have a trading plan if you’re flying by the seat of your pants.

Two fundamental tenets that every trader should have: a trading plan and they should journal those trades, especially if they are in the more junior stages of their career, absolutely.

Technical Analysis Of DISH TV (1-12-14)

Technical Analysis Of DISH TV :

Buy For A Target Of 71.

DISCLAIMER:

Investing in any equity is risky. My recommendations are technical analysis based on & conceived from charts. The information provided is not guaranteed as to accuracy or completeness. This is my personal view only.

Please consult your adviser or consultant or analysts before investing and/or trading. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by any.

Why to trade in Nifty Future instead of Stock Future

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

Quotes for Traders

·        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.

Trading Lessons from Best Traders

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 !

Technical Analysis of MCX NATURAL GAS (28-11-14)

Technical Analysis of MCX NATURAL GAS:

Buy Natural Gas For A Target Of 295.

DISCLAIMER:

Investing in any equity is risky. My recommendations are technical analysis based on & conceived from charts. The information provided is not guaranteed as to accuracy or completeness. This is my personal view only.

Please consult your adviser or consultant or analysts before investing and/or trading. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by any.

Technical Analysis Of Divis Lab (28-11-14)

Technical Analysis Of Divis Lab :

Buy Divis Lab For A Target Of 1844.

DISCLAIMER:

Investing in any equity is risky. My recommendations are technical analysis based on & conceived from charts. The information provided is not guaranteed as to accuracy or completeness. This is my personal view only.

Please consult your adviser or consultant or analysts before investing and/or trading. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by any.

Bitter Truth about Trading

As a Trader it totally amazes me to see how we are almost“hard-wired” to do all the wrong things. It’s almost as if we were put on this planet to determine how many ways we can mess up our trading.

How do you respond to a loss? How you respond to losing trade.
During my trading session I ask my students to sit down and write  on, “Why I lose money in trading, Why I fail as a trader “ Be honest with yourself. What are your typical excuses?

You might write something like this:

“I was desperate. I was running out of money, and I needed to do something. I really didn’t want to go back to work, so I had to make money. As a result, I really didn’t have time to do a trading plan Instead, I just made trades.”

For the 30 minutes that it takes to do “Why I lose money in trading, Why I fail as a trader ” exercise, give yourself a break and be brutally honest. You know that you’ll con yourself in order to not make any progress. Treat this exercise as a test to determine just how you con yourself. Can you be honest and tell it like it is, or is it more important to justify the excuses and be a failure?

So go ahead. Take 30-60 minutes right now and start writing down your excuses about your trading.

Do the exercise even before continuing reading this article! It’s that important.

So What Did You Write?

If you were honest with yourself, you justified your limitations. You’ve probably created a record that includes many of the major thoughts and beliefs that you use to undermine virtually every endeavor that you create.Furthermore, the more honest you’ve been with yourself, the more valuable this exercise will be for you.

What might some of those excuses and justifications look like?

Here’s a list of possible excuses:

·        I just haven’t had the time that I need to trade better.

·        I have had too many distractions, and I cannot focus.

·        The market has not been acting like I expected.

·        I know I need to study trading psychology, but I just can’t seem to find the time.

You make excuses simply so that you can be right. You are basically saying that you like your excuse beliefs because they are right.  Do remember Excuses don’t make you happy.  Excuses don’t make you successful. Excuses, however, do allow you to be right and if that’s so important to you, so be it.

If your trading isn’t going the way you want it to, change what you are doing, As per Behavioral studies if something doesn’t work, do something else. Almost anything else will get you different results.

Maybe you need to change something about your trading system (your exits or your position sizing strategy).

Trading is a process. There is no success or failure—only Profit and Loss. You’ve been getting P/L statement about what you’ve been doing for a long time. How have you been responding to it so far?  Have you been making up a lot of excuses?  Are you more interested in being right than making progress toward your goals?  Are you willing to change now? It’s never too late. You’re never too old.

Just imagine that you are responsible for everything that has happened to you up to now in your trading. That’s part of “responsibility” that I’ve talked and written about so many times. And when you finally decide that you are responsible for your own life—for what has happened in the past—you will find that you get an immense rush of freedom.

You can decide right now what you want, and you are in charge of making it happen.  Today is always the first day of the rest of your life, so begin now.

Technical Analysis Of ONGC (20-11-14)

Technical Analysis Of ONGC:

Short Ongc For A Target Of 360.

DISCLAIMER:

Investing in any equity is risky. My recommendations are technical analysis based on & conceived from charts. The information provided is not guaranteed as to accuracy or completeness. This is my personal view only.

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