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.

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.

Positional Calls For The Week 16-11-14

Technical Analysis Of TATAPOWER:

Buy Tatapower of Target Of 103.

Technical Analysis Of MotherSumi:

Sell Mothersumi For A Target Of 388.

Technical Analysis Of AbirlaNuvo:

Sell AbirlaNuvo For A Target Of 1675.

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 ACC (13-11-14)

Technical Analysis Of ACC :

Short Acc For A Target Of 1434.

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.

Positional Calls For The Week (10-11-14)

Technical Analysis Of Ranbaxy Laboratories :

Buy Ranbaxy For A Target Of 806.

Technical Analysis Of Bank Of Baroda (BOB):

Buy BOB For A Target Of 1050.

Technical Analysis Of Petronet :

Short Petronet For A Target Of 189.

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 Punjab National Bank (PNB) 05-11-14

Technical Analysis Of Punjab National Bank (PNB)

Buy PNB Above 965 For A Target Of 1125.

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.

Attributes of Successful Traders

Most professionals nowadays undergo psychological profile employment tests in order for their prospective employers to assess their qualities as a person and whether or not it would match up to the traits they’re looking for in an employee. Different professionals, like policemen, firemen, and pilots all have their own different set of distinctive and desirable traits, so there’s no “one size fits all” set of characteristics to describe everyone.

From this perspective, the University of Minnesota also looked at the psychological profile of some of the most successful traders in order, and their results are as follows:

The top attributes of a successful trader are:

·        Open-mindedness: A trader who’s open to possibilities is the one who is the most promising. Open-minded traders do not close off any door of opportunity that presents it to them, but instead scrutinize it and build up on these little things to produce something new. They see the opportunity in every business venture they go into, work on it to produce just what they had envisioned. Open-minded traders are the ones who usually dare to discover new things and not just the norm in their society.

·        Extroversion: While trading can be considered as a solitary activity, a lot of traders nowadays acknowledge the benefits of having a wide network of friends, acquaintances and workplace partners. Every network a trader makes means more information, and information is a vital part of the trading business. A trader can expand his own network by attending forums and conventions on trading and, needless to say, socializing with other people there.

·        Conscientiousness: A successful trader is one who is meticulous in his/her work. Before going to a business venture he/she studies it from all sides and makes sure that he/she has understood everything before agreeing. While they may be considered as rigid, they strive to operate everything in an organized manner. After all, an organized and meticulous trader not only gets the job done, but he does the job well..

·        Helpfulness: The trading industry is a tough one, so most traders would have a “survival of the fittest” attitude. However, it is important for them to learn that the most successful traders are the ones who actually slow down to help their colleagues (not competitors). Usually, successful traders become coaches to help others be successful by imparting their experiences and tricks of the trade. As a coach, he/she understands that he cannot make all of his students successful, but at least, he/she can make a difference in their careers.

What attribute will not help a trader become successful?

Neurotics: Neurotic-ism is a personality trait that manifests itself as anxiety, worry, moodiness, envy, jealousy and fear consequences. Having these undesirable traits and manifestations sends a bad signal to other traders and to potential business partners which can ruin an agreement.

Remember, these are not cookie-cutter traits that all traders need to have in order to succeed. Even if you don’t see yourself as any one of these things, as long as you are motivated enough to do your best in your craft, other people can see that determination in you which can outshine some of your negative qualities. You should therefore reflect upon yourself objectively. Knowing your strong and weak points will give you a sense of understanding of yourself and what you can do to improve. No one is perfect; you just have to be realistic in your observations and goals for yourself in order to improve and become the best trader you can be.

Technical Analysis Of Natural Gas (03-11-14)

Technical Analysis Of Natural Gas :

Short MCX NATURAL GAS For A Target Of 233.

DISCLAIMER :

Investing in any equity is risky. Our recommendations are is 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 Analaysis Of Balrampur Chini (03-11-14)

Technical Analaysis Of Balrampur Chini:

Buy Balramchin for A Target Of 75

DISCLAIMER:

Investing in any equity is risky. Our recommendations are is 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.