FROM AN EXPERIENCE
TRADERS RIGHT-ANGLE
*Risk is not the same as volatility. Assets can be volatile on the upside as well as the downside. Risk should instead be viewed as the permanent loss of purchasing power.
*A risk should not be evaluated based its frequency. Some risks only have to happen once to be catastrophic.
*Sophistication and knowledge are not a form of or substitute for risk management.
*Although following the crowd may feel comfortable, risks are just as catastrophic whether you suffer with company or suffer alone.
*Bullish consensus manufacturers the greatest risks because nobody is prepared and everyone runs for the exits at the same time. Strong optimistic consensus provides a sense that nothing can go wrong. This is why the greatest catastrophes seem to come out of the blue.
*Activity, research and analysis provides a false sense of control over the future. However devastating losses rarely due to a lack of brain power or analytical prowess.
10 HABITS OF SUCCESSFUL TRADERS
1. Follow the Rule of Three. The rule of three simply states that a trade will not be made unless you can carefully articulate three reasons for doing so. This eliminates trading from an indicator alone.2. Keep Losses Small. It is vitally important to keep losses small as most all of large losses began as small ones, and large losses can put an end to your trading career.
3. Adjust Stops. When a trade is working move your stop loss up in order to lock in gains.
4. Keep Commissions Low. There is a cost to trading but there is no reason to overpay brokerage fees. A discount brokerage is just as good as a premium brand name one.
5. Amateurs at the Open, Pros at the Close. The best time to enter trades are after lunch when the professionals are looking to get in at a better price than one provided in the morning.
6. Know the General Market Trend. When trading individual stocks make sure you trade with the general market trend or condition, not against it.
7. Write Down Every Trade. Doing this will allow you to learn what is working and what is not. It will also help you determine what types of trades work best for your personality.
8. Never Average Down a Losing Position. It is a loser’s game when you add to a loser. You add to winning positions because they are winners and are proving themselves to be such.
9. Never Overtrade. Overtrading is a direct result of not following a well thought out plan, deciding it is best to trade off emotion instead. This will do nothing but cause frustration and a loss of money.
10. Give 10 Percent Away. Money works the fastest when it is divided. When we share we prime the economic pump of the universe.
Trading is a game of rules. We either make the decision to abide by them or we break them. We do the latter at our own peril.
TODAY'S TRADING STRATEGY
OF NIFTY FUTURES - DEC 27
Above 6010, no problem for BULLS.
If crossed 6049 non-stop hike upto 6070-78-86 is seen.
If trades below 6033 for 15-20 minutes,
see a slide upto 6016-10
Support @ 6010-Break down will press NF upto 5997-91
SHARE TIPS TODAY (DEC 27)
1) Sell BEL @ 1740
T1 – 1732
T2 – 1725
2) Sell BHEL @ 2282
T1 – 2274-60
T2 – 2253
3) Sell ASIANPAINT @ 2884
T1 – 2876-70
T2 – 2860-50
4) Sell GRASIM @ 2281.50
T1 – 2272
T2 – 2263-56
BANK NIFTY
Buy btwn 11596-628
T1 – 11678-704
T2 – 11719-29
T3 – 11761
Sell btwn 11493-62
T1 – 11413-387
T2 – 11371-61
T3 – 11329
IMPORTANT THINGS TO BE NOTED
1. NEVER EVER COVER THE POSTION TILL TARGET1
IS ACHIEVED (TAKE YOUR OWN DECISION AFTER T1)
2.NEVER EVER ENTER INTO A TRADE
BEFORE THE ABOVE MENTIONED LEVELS
or AFTER THE TARGETS WERE ATTAINED.
3.STOPLOSS LEVELS, REVERSE TRADING
& MORE INTRADAY TIPS IN MARKET HOURS
EXCLUSIVELY TO THE SUBSCRIBERS
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join hands with us and enjoy.
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BE A CYNIC
Don’t argue with the tape but look at the other side of every coin. I’ve long noticed that as a group Russian and British traders are better than average. Why? Because by nature they question widely accepted beliefs. New opinions translate to revaluations. Leave your dogma at the door and be open to the unexpected and seemingly illogical. Winning traders have a reason to be in the trade. Even if based on nothing more than a vague, ethereal feel, a good discretionary trader has a profile in his mind and the moment his thesis is no longer provable or valid he is out of the position.
KEYS TO DEAL WITH TRADING FEARHow comfortable are you dealing with uncertainty?
As volatility and uncertainty increases, so does fear. When our emotions run high, then our decision making process suffers.It seems like the harder we try, the worse things get.
We start reacting to things instead of being proactive. Then we feel overwhelmed.
Does this sound familiar?
One of the hardest things to deal with is uncertainly.
We have strategies for managing our risk in most aspects of our trading. However, we seldom talk about or have strategies for the most crucial element, our Personal Risk.
Have you noticed the panic that is going on in the markets? Do you know people who have been a contributor to it? Do you know them intimately?
How do you manage your Personal Risk?
1. Trade With a Clear Mind
Do not make emotional decisions. Realize that emotions are emotions. What differentiates the successful traders from others is how we recalibrate our reactions to our emotions.
I was watching an interview with a surfer. The interviewer asked him what he does when a big surf comes and he goes underwater. The surfer said it was simple. “If I panic, I only have 3-5 seconds of air to breathe. If I stay calm, I have 45-60 seconds of air.“
What does surfing have to do with trading? If you panic and operate from a place of fear, you could lose all of your capital. However, if you take a moment and think about your strategies, you can have much better results.
2. Look at Your Portfolio Objectively
Think about your portfolio as if you are looking at the portfolio of your best friend. How would you advise him/her?
3. Limit Your Input
There are a lot of conflicting points of view. If we want to listen to all of them, it becomes very confusing, and the confused mind does not make a decision.
Instead of listening to everybody, pick the top 3 people that you respect and listen to them. This way, you can remain focused and have much better trading results.
4. Be In Tune With the Markets
Trade the markets as they are and not as you want them to be.
If we are not in tune with the markets and don’t listen to them, we are going to be in a losing game.
After all, hope is a lousy hedge.
5. Be In a Supportive Environment
It is important to listen to the people that we respect and are successful.
There are traders whose spouse and/or friends have little or no risk tolerance. As a result, these traders allow the fear of their spouse and/or friends to become the boundaries of their success.
Who are you choosing to surround yourself with?
Remember, not the most talented or skilled person wins the game. The game is won by the ones who can manage their Personal Risk and have a Mental Edge.
MESSAGE TODAY
-GEORGE WASHINGTON, letter to Major-General Armstrong, Mar. 26, 1781
RELAX CORNER
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