FROM AN EXPERIENCE
10% of your trades will account for 90% of your profits
1 or 2 months will account for most of your annual profits
1 or 2 days will account for most of your monthly profits
Good investors and traders know that very well. They are ready to press extra hard when realize that they might have a home run in play. They are ready to disappear in 60 seconds when things don’t go as planned.
knows that The Golden Rule is what distinguishes smart from not so smart money:
We’ve learned one good lesson from that one trade, and that is that we only get one or two or perhaps three good ideas each year that work. So, when they work, it is our duty to beat them into submission;
to add to them when we can; to embrace them as they insulate themselves from random market noise, and to use them to make up for the myriad numbers of truly idiotic ideas we are capable of coming up with, keeping those losses small.Sometimes one good opportunity could turn your life upside down
One of the most important aspects about being a trader is to develop a solid system that you are completely confident about. Once you have this trading system in place, it is absolutely critical that you commit to it wholeheartedly through good trades and bad trades. Here’s what William Eckhardt has to say about this subject:
[" . . . if you make a bad trade and you have money management, you are really not in much trouble. However, if you miss a good trade there is nowhere to turn. If you miss good trades with any regularity you're finished. For example, let's say the market moves rapidly through your buying zone and you miss it, you miss your buy signal and instead wait for a retracement to maybe buy cheaper. But, the market just keeps going higher and higher and never retraces. Now what do you do? There's a great temptation to reason that now it's too high to buy. If you buy it now you'll have an initiation price that's too high?
No, the initiation price simply won't have the kind of significance you suppose it will have after the trade is made. You can't miss these trades. Trading systems force discipline to make sure these trades are not missed."]
(to be contd)
No, the initiation price simply won't have the kind of significance you suppose it will have after the trade is made. You can't miss these trades. Trading systems force discipline to make sure these trades are not missed."]
W. D. GANN’S 24 All-time Stock Trading Rules
I have always enjoyed reading history, particularly historical biographies. Since I started trading many years ago I have grown fond of reading historical stock trading biographies and stock trading psychology books. A well known stock trader who had much to say about the psychology behind his technical analysis is W.D. Gann, who wrote extensively about the psychology of trading, particularly rules based psychology.
Is it not interesting how the following rules (found in his book 45 Years in Wall Street) are just as applicable today as they were over 50 YEARS AGO when they were first written?
Who needs the latest revised version of the “stock trading for dummies” book when you can learn much more by reading the masters who figured this game out a long time ago?
There is a reason why this book, and many like it, are considered classics. Enjoy.
Here are the 24 rules:
1. Amount of capital to use: Divide your capital into 10 equal parts and never risk more than one-tenth of your capital on any one trade.
2. Use stop loss orders. Always protect a trade.
3. Never overtrade. This would be violating your capital rules.
4. Never let a profit run into a loss. After you once have a profit raise your stop loss order so that you will have no loss of capital.
5. Do not buck the trend. Never buy or sell if you are not sure of the trend according to your charts and rules.
6. When in doubt, get out and don’t get in when in doubt.
7. Trade only in active markets. Keep out of slow, dead ones.
8. Equal distribution of risk. Trade in two or three different commodities if possible. Avoid tying up all your capital in any one commodity.
9. Never limit your orders or fix a buying or selling price.
10. Don’t close your trades without a good reason. Follow up with a stop loss order to protect your profits.
11. Accumulate a surplus. After you have made a series of successful trades, put some money into a surplus account to be used only in emergency or in times of panic.
12. Never buy or sell just to get a scalping profit.
13. Never average a loss. This is one of the worst mistakes a trader can make.
14. Never get out of the market just because you have lost patience or get into the market because you are anxious from waiting.
15. Avoid taking small profits and big losses.
16. Never cancel a stop loss order after you have placed it at the time you make a trade.
17. Avoid getting in and out of the market too often.
18. Be just as willing to sell short as you are to buy. Let your object be to keep with the trend and make money.
19. Never buy just because the price of a commodity is low or sell short just because the price is high.
20. Be careful about pyramiding at the wrong time. Wait until the commodity is very active and has crossed resistance levels before buying more, and until it has broken out of the zone of distribution before selling more.
21. Select the commodities that show strong uptrend to pyramid on the buying side and the ones that show definite downtrend to sell short.
22. Never hedge. If you are long one commodity and it starts to go down, do not sell another commodity short to hedge it. Get out at the market: Take your loss and wait for another opportunity.
23. Never change your position in the market without a good reason. When you make a trade, let it be for some good reason, or according to some definite rule; then do not get out without a definite indication of a change in trend.
24. Avoid increasing your trading after a long period of success or a period of profitable trades.
BANK GROSS NPAs
TO TOUCH 3.5% BY MARCH 2011: CARE
Reflecting the trend of sizable chunk of restructured assets turning into bad loans, rating agency CARE has pegged Indian banking sector’s gross non-performing assets (NPAs) at 3.5 per cent of gross advances by March 2011.
BANK GROSS NPAs
TO TOUCH 3.5% BY MARCH 2011: CARE
Reflecting the trend of sizable chunk of restructured assets turning into bad loans, rating agency CARE has pegged Indian banking sector’s gross non-performing assets (NPAs) at 3.5 per cent of gross advances by March 2011.
The moratorium period on most restructured loans will be completed by the next quarter and it remains to be seen if banks can control and restrict the slippage.
It expects 15 per cent restructured assets to be converted into NPAs in FY11. This was in addition to the normal system NPAs, CARE said.
Although domestic growth drivers continue to remain robust, the pace of global recovery continues to remain uncertain. Hence managing credit growth and asset quality while sustaining earnings growth would be key challenges for banking industry, it said.
At the time of reviewing the banking sector’s performance for the nine months ended December 2009, CARE had projected gross NPA levels at 2.8 per cent (approx) by March 2010. The overall gross NPAs of all scheduled commercial banks (SCBs) stood at Rs 81,813 crore (2.5 per cent of Gross Advances) as on March 31, 2010.
Almost 70 per cent of this (Rs 57,301 crore) was on the books of public sector banks. Asset quality continued to deteriorate during April-June Q1FY11 with public sector banks witnessing higher level of slippages leading to pressure on their gross and net NPA ratios.
During the first quarter, the absolute level of gross NPAs for select banks as on June 30, 2010 rose by 28.7 per cent y-o-y to Rs 80,879 crore. The public sector banks accounted for almost 75 per cent of this.
The overall gross NPA ratio for PSU banks was influenced by increased slippages in SBI, Bank of India, IOB, PNB, IDBI and Union Bank, which together accounted for almost 64 per cent of the increase in gross NPAs.
Slippages from the restructured portfolio averaged around 10 per cent across most public sector banks and contributed to the increase in NPAs for public sector banks.
r, commercial banks, earnings growth, gross advances, growth drivers, IOB, key challenges, mariod, non pR
TODAY’s TRADING STRATEGY
OF NIFTY FUTURES – AUG 30
Did u people notice…?
Exactly Nifty Futures 5489.90 faced a strong resistance and turned down to 5398 on Friday
Many times advised not to get trapped into long positions.
Now u all see the effect.
What next…?
Oscillation between 5358 and 5480 is expected atleast for 3 sessions in normal unwrapping.
Support @ 5378 and 5358
Strong Resistance between 5449-59
And undoubtedly BEARS will have full control below 5485
Today if trades above 5410 for 20 min,
hike upto 5434-44-54 is possible.
If decisively cuts 5393,
See a slide upto 5378-58
Use the levels for your trading, but pls do not trade blindly.
BANK NIFTY
Overall resistance @ 10963
Higher chances to hit 10515 today
Buy btwn 10751-69
T1- 10797-812
T2- 10826-843
Sell btwn 10693-75
T1- 10647-32
T2- 10618-01
Nifty, Bank Nifty levels and intraday news updated here gives astonishing success rate (more than 97%) 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 (AUG 30)
INTRADAY
With the stoploss of 809
Sell JKBank
on every rise.
T1 – 772
T2 – 766
WHAT ASTROLOGY SAYS THIS WEEK?
Free Daily and Weekly Stock Market Prediction and Forecast for August 2010 and September 2010 :
30th August 2010 to 3rd September 2010
Planetary position during August 2010 and September 2010
Sun will transit from Leo sign.
Mercury will transit from Leo sign. Mercury will retrograde.
Venus will transit from Virgo. From 2nd September 2010 Venus will transit form Libra.
Moon will transit from Aries, Taurus and Gemini..
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.
Stock Market Prediction for 30th August 2010
Transiting Moon will be passing through Aries Zodiac sign. Transiting Moon will be in applying aspect with Transiting Ketu, which indicates Market may look good during first trading session. Market may try to go up between 09.32 and 10.02. Market trend may change after 10.28. Market would gradually go up. Market may go up or nearer to previous closing during last trading session.
See the Power of Astrological calculation we will see big fall in Indian Stock Market. Looking at planetary position Indian Stock Market would be heavily volatile. Perhaps, there may be correction upto During last quarter of 2010. exit all long position. which month, Week and dates would be crucial for Indian Stock Market,
Transiting Moon will be passing through Aries Zodiac sign. Transiting Moon will be in applying aspect with Transiting Ketu, which indicates Market may look good during first trading session. Market may try to go up between 09.32 and 10.02. Market trend may change after 10.28. Market would gradually go up. Market may go up or nearer to previous closing during last trading session.
See the Power of Astrological calculation we will see big fall in Indian Stock Market. Looking at planetary position Indian Stock Market would be heavily volatile. Perhaps, there may be correction upto During last quarter of 2010. exit all long position. which month, Week and dates would be crucial for Indian Stock Market,
Disclaimer
On repeated requests of the readers,friends
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
TODAY’S QUOTE
A lady's imagination is very rapid; it jumps from admiration to love, from love to matrimony in a moment.
-JANE AUSTEN, Pride and Prejudice
RELAX CORNER
JUST SMS TO YOUR PAL
*A sardar had a child after 3 month of marriage.
He asked his wife ye 3 month k bad bacha kaise howa?
Wife replied:tumhari shadi ko kitna arsa hua?
sardar:3 months.
Wife: or meri shadi ko ?
Sardar: 3 months
Wife: or bacha kitne month k baad?
Sardar:3 month.
Wife: total kitne hue?
Sardar: oye 9 months & start dancing
Oye..Oye..Balle Balle.....
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