FROM AN EXPERIENCE
Rule One of the professional trader is: When a stock doesn’t do what you expect it to do, sell it. No hesitating, no questions or doubts raised no conjectures of the way it should have turned out, or might still turn out, no dreams of how it will do what it was supposed to do ‚tomorrow’.
The pro never says, ‚I’ll watch it one more day’. He doesn’t phone an analyst who’s been following the company and ask, ‚What’s happening? Is there any news?’ All too often , the delay in searching for the ‚why?’ is costly.
The desire to be perfect is one of the prime bugaboos of the stock market, but it’s a compulsion that belongs on the psychiatrist’s couch, not on the exchange floor.
And that means no berating yourself for having bought it, should it then go down, and no remorse for having sold should the stock turn around after you’ve gotten out and finally do what was expected.
Work continuously to improve yourself, giving importance to self-examination and recognizing that your personality and way of responding to events are a critical part of the game. This requires continuous coaching.
As a day trader, at least 90% of your trades should be in the direction of the underlying trend. Read that sentence again. Picking bottoms and tops in trending stocks may be intellectually satisfying, but it is a path to the poorhouse. The easy money in day trading stocks is in riding the underlying trend.
The most dangerous words a beginning trader can utter are: “This stock is up/down too much.” Stocks can always trend for longer than you deem plausible. There’s a reason why the famous John Maynard Keynes quip, “The markets can stay irrational a lot longer than you and I can stay solvent” is still relevant even now. Fighting the trend is a recipe for not only losing trades, but also frustration and poor risk management habits. Don’t do it.
(to be contd)
NIFTY FUTURES LEVELS (MAR 05)
Day’s resistance @ 5420 & 5470
Day’s Support @ 5370 & 5346
OPTION TRADE
Our subscribers are advised to buy 5800 CE
(bought it on March1 @ 21.50) - planned to carry
till March 8 or 9 with the closing stop of 5370 in Nifty Futures
And on March 12 planned to purchase 5400PE
that would be carried till March26
Now today,
If trades above 5401 it kisses 5418 and if trades above
5420 for 5 minutes a hike upto 5469 is possible
On the other hand if unable to break 5405
and trades below the level for 10 minutes, 5370 & 5350 is possible
I hope you all watched PRAKASHCONS for the past few weeks -
We have been telling you to go short everyday from 140 level
Now it is near our target (80 range)
Despite very low volume magically or graphically it slides to 40% within a month and if you are unable to mint money everyday through short, its all your fault dear friends
More tips (exclusively to the paid subscribers everyday) ahead in this scrip- Just wait and watch
10 PRIME RULES
1. Learn to function in a tense, unstructured, and unpredictable environment.
2. Be an independent thinker versus a conventional thinker.
3. Work out a way to handle your emotions and maintain objectivity.
4. Don’t rely on hope and fear in the conventional sense.
5. Work continuously to improve yourself, giving importance to self-examination and recognizing that your personality and way of responding to events are a critical part of the game. This requires continuous coaching.
6. Modify your normal responses to certain events.
7. Be willing to face problems, understand them, and recognize that they are in some way related to your behavior.
8. Know when problems can be resolved and then apply methods to solve them. That may mean giving up some control in order to gain a different control. It may mean changes in your personality, learning self-reliance, or giving up independence and ego to become part of a trading team.
9. Understand the larger framework in which trading occurs—how the complexity of the marketplace and your personality both must be taken into account in order to develop the mastery of trading.
10. Develop the right mind-set for trading—a willingness to commit to the kinds of changes in personal habits and beliefs that will drastically alter your life. To do this requires a willingness to surrender to the forces of the game. In order to be able to play at a maximum level, you have to let go of your ego and your need to have things your way.
SOLVE YOUR PROBLEMS SOON BUDDIES
We the traders always crazy about numbers and
I personally believe (on some analysis ground) that numbers always are interrelated with the universe & lives
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