ALWAYS EXPECT A GREAT START

Stick to the Plan

Trading Plan only has value if it is utilized as intended. It does you no good to have one if you do not stick to it. We all know this, yet traders find reasons to deviate from their Plan, almost always with negative consequences. Why? There are several reasons.

• The Plan does not match the trader: A Trading Plan is a personal thing intended for a specific trader, based on her/his personality and circumstances. If it is not created honestly based on reality rather than hope, then it will not match the trader, and likely it will be neglected.


• Lack of Patience: Trading Plans are intended to be long-term, at least relatively so. Many traders give up on their Plan, or often more specifically the trading system in the Plan, after a period of sub-par performance rather than sticking it out through the inevitable rough times.


• Lack of Discipline: Trading according to a plan requires continuous performance of a set of actions in a proscribed manner. Doing so takes discipline. Traders lacking discipline do not stick to Trading Plans. (The word “discipline” is probably the most frequently used in regards to trading success.)


• Self-Destructive Behavior: Sometimes traders have deeply ingrained issues of a psychological nature which tend to sabotage them. It is something which can be overcome with work, but first it must be recognized and addressed.

These are not the only reasons traders fail to stick to Trading Plans, but they do represent a large portion of the explanations for it happening. The point is that a Trading Plan is little more than a document if not put in to practice.

I hope this sequence has been helpful to you. Definitely feel free to drop me a question or leave a comment with your thought, experience, or ideas on the subject.

Expect To Be Wrong

The reason I bring this up was to share with you two reactions I got when describing these recent trades and cash holdings. I had two separate conversations in July — one with a well known Trader, the other with a DP Manager — about our posture prior to yesterday’s drop.

The two responses were polar opposites, 180 degree apart.

The trader respected the discipline of honoring stop losses. Good traders know that opportunistic speculation is a process. Ignore any one single outcome, focus on the methodology that can consistently avoid catastrophic losses, manage risk, preserve capital. A good process can be replicated, a random spin of the wheel cannot.

The DP manager, who was having a decent year being long high vol names (at least before Wednesday), was having none of it. “Stops are for losers” is a quote I shall long remember (and email him after he blows up). Apparently, real men have the courage of their convictions.

Rather than fight our foibles, people should admit this error stream is real, and repair the errors of our ways as soon as we discover them. I have noticed over the years the difficulty some people have in cutting losses, admitting an error, and moving on.

All these years I noted that

“I am rather frequently — and on occasion, quite spectacularly — wrong.”

However, if we expect to be wrong, then there will be no ego tied up in admitting the error, honoring the stop loss, and selling out the loser — and preserving the capital.

This is a recipe for investing disaster. We humans make 6 billion errors per day, at the very least. The biggest one is not acknowledging this simple truism.

GIVE IT UP AT TIMES

Sometimes, it’s the right thing to do. Traders must learn to honor stops and accept losses — that’s just part of the game.

Honor Your Stop

Why is it so hard to honor your stops? It is because we are taught not to quit in life. In trading, quitting is often the thing to do. If you are new to trading or lack discipline, you must place actual stops. You cannot say that you will exit the market if it goes against you by X amount and then sit there like a deer in the headlights as the market blows past that stop.

Placing actual stops makes your decision a passive one and not an active one. The market will make the decision for you if you are wrong.

Once you gain experience, confidence and discipline, you can use mental stops to help avoid being stopped out under certain specific conditions. However, when learning or having difficulties following your plan, you should place actual stops.

View A Potential Loss As A Cost

There is a cost to doing business in any field. You will have to pay for office supplies, computers, printers, and inventory if you are selling something tangible. When you run low on supplies or inventory, you accept the fact that you have to buy more. A loss in trading must be viewed the same way. It is simply the cost of doing business.

Raging bull comes at sensitive time for Spain

The extraordinary scene of a bull jumping into the crowd in northern Spain comes as the country is split over the future of bullfighting. . Follow us…

NOW

TODAY's TRADING STRATEGY
OF NIFTY FUTURES – AUG 23

Good Intraday Support @ 5478

Decisive break of 5504 pulls Nfutures back to 5491-79

Exact entry for long barely to the subscribers

Use the levels for your trading, but do not trade blindly..

ALL THE BEST

BANK NIFTY

Trend line Support (in day chart)

Today @ 10727

and resistance @ 11040 in intraday card

Buy btwn 11045-62

T1- 11090 - 104

T2- 11118 - 165

Sell btwn 10987-70

T1- 10941-927

T2- 10914-896

SHARE TIPS TODAY (AUG 23)

INTRADAY

SELL INFOEDGE @ 1017

T1 – 1008

T2 – 1001

T3 – 990

WHAT ASTROLOGY SAYS THIS WEEK?

Daily and Weekly Stock Market Prediction

and Forecast for August 2010 :

23rd August 2010 to 27th August 2010

Planetary position during August 2010
Sun will transit from Leo sign.
Mercury will transit from Leo sign. Mercury will retrograde.
Venus will transit from Virgo.
Moon will transit from Capricorn, Aquarius and Pisces.
Mars will transit from Virgo.
Rahu will transit from Sagittarius.
Jupiter will transit from Pisces. Jupiter will retrograde.
Saturn will transit in Virgo.
Ketu will transit in Gemini.

Transiting Moon will be passing through Capricorn Zodiac sign. Transiting Moon will be in applying aspect with Transiting Venus, which indicates Market may go up during first trading session. Market may go up between 09.45 and 10.09. Market trend may change after 11.21. Market would gradually go up during last trading session. Full Moon will be on 23rd August 2010, so be careful.

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

(Please refer to ‘OUR POLICIES’ before you leave the site)

For further details,

Contact Admin (Editor) @

(0)9788563656

&

(04142)236656

-Mahindeesh (a) Sathish

Cuddalore-2

Tamil Nadu

India

TODAY’S QUOTE

How do I love thee? Let me count the ways.

I love thee to the depth and breadth and height

My soul can reach.

-ELIZABETH BARRETT BROWNING, Sonnets from the Portuguese

RELAX CORNER

JUST SMS TO YOUR PAL

*Professor: Chemical symbol of Barium?
Sardar: BA
Professor:For sodium?
Sardar: NA
Professor:What will we get if 1 atom of BA
& 2 atoms of NA combined?
Sardar: BANANA






*Hitler says,
“There is no word like IMPOSSIBLE in my dictionary”
Sardar says:Ab bolne se kiya fayidah?
“Jub kharidi thi tab hi check karna tha na”:D

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 ADVISOR BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.