SPECULATORS -LISTEN TO THIS OR NOT
Be a Cynic When Reading the Tape
We must be cynics when reading the tape. I do not mean that we should be pessimists, because we must have open minds always, without preconceived opinions. An inveterate bull, or bear, cannot hope to trade successfully. The long-pull investor may never be anything but a bull, and, if he hangs on long enough, will probably come out all right. But a trader should be a cynic. Doubt all before you believe anything. Realize that you are playing the coldest, bitterest game in the world.
Almost anything is fair in stock trading. The whole idea is to outsmart the other fellow. It is a game of checkers with the big fellows playing against the public. Many a false move is engineered to catch our kings. The operators have the advantage in that the public is generally wrong.
They are at a disadvantage in that they must put up the capital; they risk fortunes on their judgment of conditions. We, on the other hand, who buy and sell in small lots, must learn to tag along with the insiders while they are accumulating and running up their stocks; but we must get out quickly when they do. We cannot hope to be successful unless we are willing to study and practice—and take losses!
But you will find so much in Part Three of this book about taking losses, about limiting losses and allowing profits to run, that I shall not take up your thought with the matter now.
So, say I, let us be hard-boiled cynics, believing nothing but what the action of the market tells us.
If we can determine the supply and demand which exists for stocks, we need not know anything else.
If you had 10,000 shares of some stock to sell, you would adopt tactics, maneuver false moves, throw out information, and act in a manner to indicate that you wanted to buy, rather than sell; would you not? Put yourself in the position of the other fellow. Think what you would do if you were in his position.
If you are contemplating a purchase, stop to think whether, if you act contrary to your inclination, you would not be doing the wiser thing, remembering that the public is usually wrong.
FROM AN EXPERIENCE
The most important thing is to have a method for staying with your winners and getting rid of your losers.By having thought out your objective and having a strategy for getting out in case the market trend changes, you greatly increase the potential for staying in your winning positions. The traits of a successful trader: The most important is discipline – I am sure everyone says that. Second, you have to have patience; if you have a good trade on, you have to be able to stay with it. Third, you need courage to go into the market, and courage comes from adequate capitalization. Fourth, you must have a willingness to lose; that is also related to adequate capitalization. Fifth, you need a strong desire to win.
You have to have the attitude that if a trade losses, you can handle it without any problem and come back to do the next trade. You can’t let a losing trade get to you emotionally.
If a trade doesn’t look right, I get out and take a small loss.
In a narrow market,when prices are not getting anywhere to speak of but move within a narrow range, there is no sense in trying to anticipate what the next big movement is going to be up or down. The thing to do is to watch the market, read
the tape to determine the limits of the get-nowhere prices, and make up your mind that you will not take an interest until the price breaks through the limit in either direction. A speculator must concern himself with making money out of the market
and not with insisting that the tape must agree with him. Never argue with it or ask it for reasons or explanations. Stock-market postmortems don’t pay dividends.
the tape to determine the limits of the get-nowhere prices, and make up your mind that you will not take an interest until the price breaks through the limit in either direction. A speculator must concern himself with making money out of the market
and not with insisting that the tape must agree with him. Never argue with it or ask it for reasons or explanations. Stock-market postmortems don’t pay dividends.
Do you wish to gamble blindly in the hope of getting a great big profit or do you wish to speculate intelligently and get a smaller but much more probable profit?
BEGINNERS PLS GO THROUGH:
When primitive people have invented money, all they have in mind is to find some means to solidly show the actual exchange of goods or services between two persons or groups. Since then, any exchanges of goods have been centered on money, bearing the most tangible form of trade.
As time pass by, trading has significantly evolved in different industries where money is not the primary agent. Trading becomes a profitable venture; and had created a remarkable spot in the economy.
Today, there are many kinds of trading. Every type of trading depends on the kind of exchange that will take place. For instance, FOREX or foreign exchange trading focused on foreign currencies.
Among the many trading types, day trading has slowly etched a name in the industry. With its remarkable turn of profits, day trading has quite gained a good reputation.
What is Day Trading?
Day trading generally stands for the system of selling and buying financial tools such as bonds or stocks throughout the day.
In other words, day trading is a series of material exchanges that all happens within the day. Hence, in day trading, every piece of stock bought has its corresponding sale. The profit or deficit is identified on the discrepancies between the goods and the trade price.
The main concept of day trading is based on the premise that all of the transactions are carried out within the day to ensure that there are no changes on the current closing price.
Changes usually take place overnight, where the preceding closing price will be changed depending on the result of the day's trading activities.
Sounds easy? Guess again.
Day trading may not sound complicated and may not even look perilous to one's financial status. However, trading experts say that more people tend to lose during the day trading. Statistical reports show that nearly 90% of day traders spend more money without gaining something in return.
For this reason, it is important that every day trader should know how to deal with the matter intelligently. It takes some wits and quick thinking just to overcome any probable loss in day trading.
Here are some day trading tips for beginners:
1. Chop down shortfalls quick
The secret is to regain back what you have lost. Try to handle the situation positively and maneuver the condition to a constructive one. There is no use to cry over spilled milk. What you need to do is to reduce the losses with quick, sharp moves.
2. Go with the flow
Like traffic, taking the counter flow is not advisable in day trading. It would be better if you will just go with the flow. This means that you have to focus on the high-selling stocks and sell those that fall under "short-selling" stocks.
This is based on the belief that the development of stocks will continue to rise. Luckily, 8 out of 10 day traders find this strategy effective.
3. Control your emotions
Some day traders tend to be emotionally involved with their dealings.
In reality, day trading can really create hype. Hence, emotional people tend to act on impulse. Any good news will immediately alert day traders to expect a positive turnover of stocks. Hence, if you are too emotional, you may get excited and act without even evaluating the situation.
To avoid trouble, it would be better to control your emotions and analyze each condition first before making a move. If you lost, analyze the situation and identify where you have been wrong.
Do not take your defeats seriously. Keep in mind that an open mind is important to overcome problems encountered in day trading. This will help you achieve the profits that you want.
(to be contd)
As time pass by, trading has significantly evolved in different industries where money is not the primary agent. Trading becomes a profitable venture; and had created a remarkable spot in the economy.
Today, there are many kinds of trading. Every type of trading depends on the kind of exchange that will take place. For instance, FOREX or foreign exchange trading focused on foreign currencies.
Among the many trading types, day trading has slowly etched a name in the industry. With its remarkable turn of profits, day trading has quite gained a good reputation.
What is Day Trading?
Day trading generally stands for the system of selling and buying financial tools such as bonds or stocks throughout the day.
In other words, day trading is a series of material exchanges that all happens within the day. Hence, in day trading, every piece of stock bought has its corresponding sale. The profit or deficit is identified on the discrepancies between the goods and the trade price.
The main concept of day trading is based on the premise that all of the transactions are carried out within the day to ensure that there are no changes on the current closing price.
Changes usually take place overnight, where the preceding closing price will be changed depending on the result of the day's trading activities.
Sounds easy? Guess again.
Day trading may not sound complicated and may not even look perilous to one's financial status. However, trading experts say that more people tend to lose during the day trading. Statistical reports show that nearly 90% of day traders spend more money without gaining something in return.
For this reason, it is important that every day trader should know how to deal with the matter intelligently. It takes some wits and quick thinking just to overcome any probable loss in day trading.
Here are some day trading tips for beginners:
1. Chop down shortfalls quick
The secret is to regain back what you have lost. Try to handle the situation positively and maneuver the condition to a constructive one. There is no use to cry over spilled milk. What you need to do is to reduce the losses with quick, sharp moves.
2. Go with the flow
Like traffic, taking the counter flow is not advisable in day trading. It would be better if you will just go with the flow. This means that you have to focus on the high-selling stocks and sell those that fall under "short-selling" stocks.
This is based on the belief that the development of stocks will continue to rise. Luckily, 8 out of 10 day traders find this strategy effective.
3. Control your emotions
Some day traders tend to be emotionally involved with their dealings.
In reality, day trading can really create hype. Hence, emotional people tend to act on impulse. Any good news will immediately alert day traders to expect a positive turnover of stocks. Hence, if you are too emotional, you may get excited and act without even evaluating the situation.
To avoid trouble, it would be better to control your emotions and analyze each condition first before making a move. If you lost, analyze the situation and identify where you have been wrong.
Do not take your defeats seriously. Keep in mind that an open mind is important to overcome problems encountered in day trading. This will help you achieve the profits that you want.
TODAY’S DAY TRADING STRATEGY
OF NIFTY FUTURES – SEPT 9
Resistance @ 5648 & 5671
Good Support @ 5577 & 5565
Above 5610, Nifty kisses 5648 and thereafter possibly 5671
And more chances for this today seen on cards
Suppose if cuts & trades below 5565
Slide upto 5539 is seen..
But chances are remote in this direction.
BANK NIFTY
No problem for BULLS above 11127 today.
Definitely kisses 11217 & 244
And even more if travels with volumes.
Buy btwn 11199-217
T1- 11244-58
T2- 11271-89
Sell btwn 11141-25
T1- 11098-84
T2- 11071-53
SHARE TIPS TODAY
Sell MOTHERSUMI @ 185
T1 – 183.90
T2 – 182.10
YOUR BODY & MIND IN TRADING
You have to do the mental work to let go of the need to know what is going to happen next or the need to be right on each trade.
In fact the degree to which you think you know, assume you know, or in any way need to know what is going to happen next, is equal to the degree to which you will fail as a trader.
Mark Douglas The most successful traders have found a way to inoculate themselves from the stress of trading, and from the outcome of their most recent trades. Here’s how they do it: They have an unshakable belief in the fact that
1) While the outcome of any given trade is uncertain they believe in their edge over a series of trades. In other words they know the expectancy of their method and have confidence that over a series of random outcomes, the odds are in their favor.
2) Anything can happen! In other words they have learned to think of every trade like tossing a coin – they don’t need to know what will happen.
They don’t expect to either win or lose. This firm belief in the uncertainty of any given trade, while knowing that over a series of trades you will be profitable, is very liberating.
When you learn the mental discipline of letting go of the result of any individual trade you keep your mind in a state where it can easily perceive the opportunities that the market is offering.
It is not distracted by focusing on your expectations of what you think should happen – it can perceive what is most likely to happen. The Body/Mind Connection
When we speak of "The Trader's Mindset" what are we really talking about? Many of my students and clients 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 awhile 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.
-Bennett A. McDowell
In fact the degree to which you think you know, assume you know, or in any way need to know what is going to happen next, is equal to the degree to which you will fail as a trader.
Mark Douglas The most successful traders have found a way to inoculate themselves from the stress of trading, and from the outcome of their most recent trades. Here’s how they do it: They have an unshakable belief in the fact that
1) While the outcome of any given trade is uncertain they believe in their edge over a series of trades. In other words they know the expectancy of their method and have confidence that over a series of random outcomes, the odds are in their favor.
2) Anything can happen! In other words they have learned to think of every trade like tossing a coin – they don’t need to know what will happen.
They don’t expect to either win or lose. This firm belief in the uncertainty of any given trade, while knowing that over a series of trades you will be profitable, is very liberating.
When you learn the mental discipline of letting go of the result of any individual trade you keep your mind in a state where it can easily perceive the opportunities that the market is offering.
It is not distracted by focusing on your expectations of what you think should happen – it can perceive what is most likely to happen. The Body/Mind Connection
CONTROLLING EMOTIONS IN TRADING
When we speak of "The Trader's Mindset" what are we really talking about? Many of my students and clients 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 awhile 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.
-Bennett A. McDowell
WATCH THIS PALS
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TODAY’S QUOTE
The belief that there is only one truth and that oneself is in possession of it seems to me the deepest root of all evil that is in the world.
-MAX BORN, as quoted in Judith Sherven's The New Intimacy
RELAX CORNER
JUST SMS TO YOUR PAL
Q:Why is a Sardarji standing below
a tube light with a open mouth?
A:Because his doctor advised him
“Today’s dinner should be light”
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