How Do I Find My Trading Strategy?
1. The best way to find the a trading strategy for you, is to analyzeyour own financial
situation.
Are you looking to make money now or long-term? How much money will you be using?
What kind of risk are you looking for?
These questions will determine things like what stocks you will be looking at
and the price range you want to be within.
2. Once you figure that out, now you need to think about how you want
to analyze
these stocks.
Do you want to research the
company’s numbers (fundamental analysis)
or look at patterns from historic prices (technical analysis)?
3. Finally, you test, test, and test.
Check out the results you get and tweak from there.
Eventually you will find something you are comfortable with,
and now this should be your base for any stocks that come your way.
In Trading, the STATISTICS show that smarts, experience, etc.
are not the differentiating factor.
The BEST (most successful guys I know)
have winning %’s of less than 50%.. actually,
the average is between 45-55% but the point is, basically,
winning percentages don’t matter – so they might as well be a
random event.
So, what does make a difference?
- CONVICTION in ideas
- INTERNAL CONFIDENCE
- TRUSTING YOURSELF
- GETTING BIG IN TRADES you believe in
- LETTING WINNERS RUN
- CUTTING LOSERS QUICKLY
- SWITCHING DIRECTIONS QUICKLY
These are many of the factors that allow some people
to become monster traders over time.
It’s not my opinion, just my observations.
(to be contd)
Trading is a journey and a competitive activity.
(to be contd)
Why would you not plan your trades?
Are you relying on someone else to plan them for you?
Doyou think there is something magical about the markets
and all you have to do is click the mouse or call your
broker and money flows into your account?
If any of these are true, you are setting yourself up for failure.
Make a plan. This plan is what resonates with your brain
structure, trading personality and money attitudes.
Make it as simple as possible and then trade it consistently,
day after day.
If the plan is not working, change it until you get one that works
for you. If it is working and generating profits for you, keep it.
Don’t try to fatten it up, give it more bells and whistles or
get greedy with it.
for you. If it is working and generating profits for you, keep it.
Don’t try to fatten it up, give it more bells and whistles or
get greedy with it.
If it’s broken, fix it and if it isn’t then leave it alone.
Keep it simple and keep going with it.
Keep it simple and keep going with it.
Look at your plan every night after the market close.
Write down how it worked for you that day
& then contemplate and write down how you will use
it the next day.
In your nightly preparations and your preparations before
the market opens, review your plan,
Ensure that you are ready to execute,
that you know what you are going to do,
when you are going to do it,
and then just do it—then execute ruthlessly.
This is one way to empower yourself and grow in confidence
as a trader. Winning in the markets, sports, business
and life is about superior positioning, planning, reviewing,
reworking, and executing over and over again until
you get it right in a way that is seamlessly competent.
Write down how it worked for you that day
& then contemplate and write down how you will use
it the next day.
In your nightly preparations and your preparations before
the market opens, review your plan,
Ensure that you are ready to execute,
that you know what you are going to do,
when you are going to do it,
and then just do it—then execute ruthlessly.
This is one way to empower yourself and grow in confidence
as a trader. Winning in the markets, sports, business
and life is about superior positioning, planning, reviewing,
reworking, and executing over and over again until
you get it right in a way that is seamlessly competent.
My Chat Session with Trader :
In your opinion what is it that causes traders to lose most?
That’s easy. The answer ties in exactly to what we were
just talking about, namely insufficient risk control.
It is one of the most common reasons why traders get into trouble.
One way or the other, the cause for large losses and traders
blowing up is insufficient risk control.
just talking about, namely insufficient risk control.
It is one of the most common reasons why traders get into trouble.
One way or the other, the cause for large losses and traders
blowing up is insufficient risk control.
Any other errors that traders often make that end up in losses?
All the errors I can think of really come back to i
nadequate risk control. If someone over-trades a position,
it’s an example of insufficient risk control.
If a person gets married to a position and just stays with it,
giving it more and more time, it is insufficient risk control.
A lot of the trading mistakes that people make
when you go down one level deeper are due to
insufficient risk control. Of course, people can make
analytical mistakes, they can call the market wrong, and so on,
but then again for that to do real damage,
it’s going to have to come down again to some inadequacy
in risk control.
nadequate risk control. If someone over-trades a position,
it’s an example of insufficient risk control.
If a person gets married to a position and just stays with it,
giving it more and more time, it is insufficient risk control.
A lot of the trading mistakes that people make
when you go down one level deeper are due to
insufficient risk control. Of course, people can make
analytical mistakes, they can call the market wrong, and so on,
but then again for that to do real damage,
it’s going to have to come down again to some inadequacy
in risk control.
So it basically boils down to one word — discipline.
Yes. It’s not sufficient to have an effective risk control strategy, you also need the discipline to apply it.
Discipline also comes into play in other ways.
If you have a strategy that signals a trade that looks
very scary but fulfills all the requirements of your methodology,
you need the discipline to take the trade.
In other words, discipline applies not only trade to getting out
of a trade but also getting in.
Another aspect of discipline is avoiding trades
that aren’t part of your methodology.
To summarize, discipline applies to many aspects of trading,
risk control being just one.
TODAY’S DAY TRADING Discipline also comes into play in other ways.
If you have a strategy that signals a trade that looks
very scary but fulfills all the requirements of your methodology,
you need the discipline to take the trade.
In other words, discipline applies not only trade to getting out
of a trade but also getting in.
Another aspect of discipline is avoiding trades
that aren’t part of your methodology.
To summarize, discipline applies to many aspects of trading,
risk control being just one.
STRATEGY OF NIFTY FUTURES – SEPT 27
No problem at all for Bulls above 6023
Watch a sure hike upto 6062-75-84
If trades below 6023 NF slides upto 6005
Good support exist @ 6000
Suppose if breaches 5995 with heavy volumes
Slide upto 5978-52 is seen (remote chances in this direction)
BANK NIFTY
Support @ 12171
Resistance @ 12305
Buy @ 12306
T1 – 12356-74
T2 – 12391-413
Sell @ 12226-04
T1 – 12171-149
T2 - 12133-111
Nifty, Bank Nifty levels and intraday news updated here gives astonishing success rate (more than 95%) that is more than enough for the readers to attain a decent profit daily.
To mint much more money pls subscribe our service and enjoy daily market with our guidance.
Thank you.
SHARE TIPS TODAY
Sell VINDHYATEL @ 453.65
T1 – 450.10
T2 – 445.25
WHAT ASTROLOGY SAYS THIS WEEK?
Free Daily and Weekly Stock Market Prediction and Forecast for September 2010 : 27th September 2010 to 1st October 2010
Planetary position during September 2010
Sun will transit from Virgo sign.
Mercury will transit from Leo sign.
Mercury will transit from Virgo sign
from 30th September 2010 after 22.55
Venus will transit from Libra.
Moon will transit from Aries, Taurus and Gemini.
Mars will transit from Libra.
Rahu will transit from Sagittarius.
Jupiter will transit from Pisces. Jupiter will retrograde.
Saturn will transit in Virgo.
Ketu will transit in Gemini.
Venus will transit from Libra.
Moon will transit from Aries, Taurus and Gemini.
Mars will transit from Libra.
Rahu will transit from Sagittarius.
Jupiter will transit from Pisces. Jupiter will retrograde.
Saturn will transit in Virgo.
Ketu will transit in Gemini.
Stock Market Prediction for 27th September 2010
Transiting Moon will be passing through Aries Zodiac sign. Transiting Moon will be in applying aspect with Transiting Mercury, which indicates Market trend would Volatile and Profit booking would be seen upto 11.20. Market trend may change after 11.30.
Market may go up between 11.37 and 12.09. Market would gradually go up. Market may go up during last trading session.
Disclaimer
On repeated requests of the readers this astral prediction is started.
Traders are advised to attain some technical knowledge before they get into trades anyway
-EDITOR
Successful Stock Trading Strategies
Understand How Stocks Move
1. Industries and sectors move differently - Whether it is an up or down market, there will always be good stocks to buy. There are too many entities, commodities, and industries to summarize everything under one analysis. If one sector or industry is going down, then there will be others that are going up.
2. Half the battle is just understanding terminology and tendencies – Traders like to use 10 different sayings/terms for one word. Many times just understanding the words will help you instantly improve your trading. .
3. What makes a stock tick – We’ll talk more about this later, but identify what makes a stock move. What stocks should benefit from the price of oil going up or down.. what about gold? The key is to find comparisons.
4. Public news is late news – When people are unsure of things, they like to wait and see what happens. With the stock market, this is basically draining your account of money. With so many blogs, social media networks, and media resources, the market moves more on perception than actual facts. If a company is being taken over, then its price would have most likely rocketed higher on early rumors. If you have a hunch, act fast and don’t wait for it to become public knowledge.
Wait For Your Setup
5. Whatever your strategy is, don’t chase stocks. There are too many stocks to have to do that – Its important to develop a strategy that will help analyze if stocks are optimized for your individual needs.6. You never really know somebody’s else’s profit margin, time span, and bank account – Stock recommendations are good, but put them through your own strategy before fully accepting them. You never know how much money somebody is dealing with or what is an acceptable profit margin for them.
Example: Naagappan recommended Stock X. Ramaswamy sees the recommendation and instantly buys Rs50000 worth of shares; however, what he didn’t know was that Naagappan bought Rs 1,00,00,000 worth of shares. Stock X goes up Rs0.10, and Naagappan sells and takes his profit. The Rs0.10 doesn’t come out to much profit for Ramaswany, so he his now stuck to hold longer; however, the stock now sinks and Ramaswamy is left with a loss, while Naagappan moved on to his next stock.
Ramaswamy didn’t know the time frame, profit margin, and money Nagappan was dealing with. So always analyze the stock yourself before acting on a recommendation, or try to ask recommender what their info is.
7. If you miss a move, continue to track that stock until it sets up again – Many people miss a move on the stock and move on, which is good, but you should still track the stock. You already know what makes that stock move now, so continue to follow that until it sets up again. Stocks consistently go up and down, so become familiar with it.
People ask me all the time why I analyze the same stocks so often, the reason is because I am tracking them. Obviously, the more you become familiar with a stock, the more you tend to learn what makes it move. Create a watch list.
Share Allocation
8. Invest or don’t invest – If you’re going to invest money into a stock, then invest a good amount. Those that try to play it safe, by just picking up a couple shares, will ultimately be hurt more because the low share volume will result in holding longer than you want to and enhancing odds of losing money.9. A minimum of 200 shares. Need to factor in price of commissions – 100 shares is alright if you have to. Take into account the money you have. You CAN invest with Rs10000, but stick to stocks with prices under Rs100. This not only increases chance of making more money, but also narrows potential stocks because you don’t have to worry about anything above Rs100.
The number of shares determines how much money you make … not how much money you invest.
Let Stocks Play Out
10. Don’t be afraid of red. Stocks go up and down – Unless you sell, you have not actually made any gains or losses. Very rarely will you buy a stock at its bottom. Leave some breathing room for your stocks to work its way higher. If you use stops, then stay consistent for every trade.11. Take profit when you can. Scale down if you need to – While picking a bad stock is always a bad thing, losing profit is even worse. Remember that no gains are realized until you actually sell. That being said, you should always try to capture profit. Scale down if you need to. By that I mean, if you have 200 shares, then sell 100 and scale out.
12. Don’t watch stocks everyday if you don’t have to – Keep time frame in mind. Watching your stocks everyday can play mind games on you. If your time frame is 3 months, then who cares what happens tomorrow.
13. Don’t be afraid to lose money – You will lose money, but you will also make money. If you sell every time at first sign of red, then you probably won’t make many successful trades at all.
How Do You Know When To Sell
14. Bad news – If your company is about to go bankrupt, being sued, or some other news not good for business, then good idea to sell.15. Large volume on down swing – If you’re using technical analysis and that particular down movement is accompanied with large volume, then it could be time to sell.
16. Not following your trading plan – If you bought the stock in hopes of it rising based on some event or action and its not doing that, then it could be time to sell.
Example: You bought a stock on hopes it would rise with gold, but gold rises and the stock doesn’t.
Index/Pattern Recognition
17. If oil goes up, what stocks move – Find indexes and commodities, and then see how one relates to the other.18. Use indexes and markets to determine where to trade – If gold is the hotspot, then find gold related stocks. If the dollar is falling, then find stocks that benefit from this. Use hotspots to help you determine where to find stocks to invest in.
(Please refer to ‘OUR POLICIES’ before you leave the site)
For further details,
Contact Admin (Editor) @
(0)9788563656
TODAY’S QUOTE
If you can conceive it and believe it, you can achieve it.
-JESSE JACKSON, Straight from the Heart
RELAX CORNER
JUST SMS TO YOUR PAL
Suresh Kalmadi tried to hang himself but the ceiling collapsed !
Long live CWG.
(Jokes via SMS )
Amazing but true -If u re-arrange the letters
“Sir u made lakhs ”
u get ………………….
SURESH KALMADI !!
(ரொம்பப்ப்ப்ப் பெருமையா இருக்கு...
இப்படியே 'கன்டிநியூ' பண்ணுங்கடா )
DISCLAIMER
THE RECOMMENDATIONS MADE HERE DO NOT CONSTITUTE AND OFFER TO SELL OF A SOLICITATION TO BUY ANY OF THE SECURITIES/COMMODITIES OF ANY OTHER INSTRUMENTS WHATSOEVER MENTIONED. NO REPRESENTATIONS CAN BE MADE THAT THE RECOMMENDATIONS CONTAINED WILL BE PROFITABLE OF THAT THEY WILL NOT RESULT IN LOSSES. READERS USING THE INFORMATION CONTAINED HEREIN ARE SOLELY RESPONSIBLE FOR THEIR ACTIONS. SURFING OR USING ‘tradersharmony.blogspot.com' DEEMS THAT THE SURFER ACCEPTS AND ACKNOWLEDGES THE DISCLAIMERS AND DISCLOSURES.THE INFORMATION PUBLISHED ARE FOR EDUCATIONAL AND INFORMATIVE PURPOSE ONLY AND THE USER/READERS SHOULD TAKE ADVICE OF HIS/HER ADVISER BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.
