FROM AN EXPERIENCE
Trading can be mastered if you concentrate your efforts on how you will react to price rather than desiring to predict it. Reacting is a business decision, predicting is an ego play.
Traders want to make money. Losses in the long run don’t matter. Forecasters (prophets) want to be right (ego). And that’s all that they are concerned about.
Don’t decide anything (ego), let the market do that job for you (business).
Like any other business you have a business plan and the financial portion of that plan is the most important.
In this business your inventory is stocks, bonds, futures or options. Like any other business you define what an acceptable loss is on an item and what is an acceptable profit for the risk undertaken. Like any other business if the item of inventory doesn’t do what you expected it to do, you put it on sale and liquidate it to raise capital to purchase inventory that will do what you want it to do. Your acceptable loss is your stop. Your money management system tells you how much that is. Your mark up is dependent upon your trading system and trading style. It doesn’t make any difference if you are a day trader or an investor. Like any business, some turn their inventory 10 times a day, some 20 times a year and some only twice a year. Your trading style and inventory volatility will tell you what your turnover rate will be.
Trading is a business and if you treat it as anything else you will be a loser.
Not Everyone Can be a Trader
Traders are analytical, problem solvers, entrepreneurial people who are not afraid to take a risk. Traders have to be well capitalized with the patience and dedication it takes to learn how to trade. Beyond all things, a trader must have the stamina to recover from losses, and to wisely use profits to achieve greater day trading rewards.
Being a successful trader requires traits that most do not.
If you do not have these traits, perhaps day trading is not right for you. Traders have to be able to think outside conventional frameworks, think quickly and wisely, without involving emotions or prejudice and act immediately.
While this may not sound like something difficult to do, when you consider that waiting a minute too long, making a wrong decision, or ignoring a trade for any reason can result in a loss of hundreds to thousands of dollars you realize that anything less than perfect judgment can be disastrous.
Patience frees you from active involvement in the chaotic, and often reckless, behavior of others in the markets, and it puts you and your trading plan into a clearer perspective. It allows you to see yourself as a human be-ing, rather than a human
do-ing.
do-ing.
When you first started trading, what did you hear constantly? Preserve your capital. You heard it, but maybe you did not listen, or did not understand. If you have no financial capital to use, you are out of the game. If you are chasing or getting in just to get in and are getting whipsawed daily; and you are losing, drip by drip, or in larger chunks, you are out of the game. If you are cutting your winners too quickly and letting your losers ride, you are out of the game.
If you wait, take time, assess the situation and then pounce like a jaguar at the right opportunity, your chances for trader longevity increase significantly.
You have preserved your financial capital, and deployed it appropriately with a good risk/reward ratio.
Day trading can be a difficult field to enter, but it's just as difficult once you've penetrated to continue trading successfully. In fact, many existing traders find themselves overwhelmed by the inability to conduct their trades as successfully as their potential permits.
A survey of 300 investors conducted in July of 2002 by Insight Express shows that 33% of investors lack time to properly research all their trades and 28% admitted that analyzing the markets was too complex for them.
In spite of the overwhelming barriers and demands to becoming a successful trader, I would like to encourage you to find out more about trading. Trading can be one of the most exciting and rewarding endeavors that you ever undertake. Even if you're not making thousands a day, trading with even moderate success will invigorate you as well as teach you the important concepts of money management and thinking on your feet. There are many resources that can help you get started, and if you're not convinced that you can be a day trader, I suggest researching the subject some more. All you need to get started is knowledge and capital. Whether you are successful and continue to trade is up to you.
(to be contd)
Reasons why day trading is right or wrong for you.
Looking at it from the outside-in, day trading can seem intimidating. Day trading has paved the road to riches for many but you wouldn't know where to start. Even if you did, day trading is for someone else - not for you. Day trading is intimidating, and rightly so, but you probably have many of the misconceptions that those new to trading typically have.
In fact, many of these misconceptions might be keeping you from day trading for the wrong reasons. In any case, those who decide to day trade or swing trade and those who decide not to inevitably asked themselves the same question: "Why Trade?"
The risk is very high, but the rewards are great, and the rush from a successful trade is even greater. The risk, however, can sometimes seem too high, uncontrollable, and not worth the effort for many day traders.
Day trading and swing trading aren't for everyone - it's up to each individual day-trader-to-be to decide whether or not he or she has what it takes to be a successful day trader or swing trader.
When considering entering into day trading as a hobby or as a full time occupation, there are many considerations to take into account. By weighing these considerations before entering the market, you can determine whether or not day trading will be your road to riches - or to ruin.
Financial Rewards
Imagine a business that has almost no overhead, you set your own hours, all your assets are liquid at all times, you are not tied to one location, you can never be fired or laid off, you can take a vacation when ever you want, you can work out of your home and if you do it well, you can also make as much money as you want.
Done imagining? Day trading can be this perfect business.
The amount of capital that you start with grows with you as you grow. As your capital grows, so do your earnings and so on. It is quite possible for a day trader to, on a daily basis, make profits equaling 5% or higher.
This means, if you start day trading with $25,000, then that day you'll earn 5% of that in profit, or $1250. The next day, you will have $26,250. Earning 5% on this equals $1312 profit for the second day. Formulaicly, this would suggest that you would earn at the end of "d" days $25000(1.05)d-1. Theoretically, if you were to earn an average of 5% profit a day, you can turn $25000 into $108,000 in only 31 days.
To earn rewards like that in day trading or swing trading, however, requires a great commitment and stamina, a great mind for how the market works, or at least access to a great wealth of knowledge.
Trading is a Business
Would-be-traders see day trading as a source of income much like gambling.
You chance your money on a venture that might or might not be, and if you gambled correctly you reap the rewards.
What day trading actually is - and what most new investors fail to understand - is that day trading is actually a business that requires a great deal of research, time, and ethic to execute successfully.
Your trading business has employees (i.e., yourself), outsources services (e.g., a broker), and competitors (e.g. other traders, the market itself). Every business, like yours, exists in a market, and trading is no different.
Day trading however, is a much faster-paced business than any other in that market fluctuations occur at every instant and each flux instantly affects your earnings.
Just like any other business the purpose of trading is to make money, and like any other business trading aims to not just make money, but also make it on a consistent basis.
Longevity in any business such as trading requires hard work, stamina, growth, consistency, bookkeeping skills and the willingness to risk a lot for much larger returns.
The rewards wouldn't be so great if the risk weren't likewise.
Working capital, the amount of money available for use, is a business's livelihood.
Your capital is what you depend on for the sustenance and growth of your trading business.
Capital preservation is always more important to growth than capital appreciation, and that is why, as a potential businessman, you must be prepared to inject your profits back into your business.
There's a chance that you'll lose the money you just earned, but your business as a trader stands to give you so much more if you risk it wisely.
TODAY’S DAY TRADING STRATEGY
OF NIFTY FUTURES – SEPT 7
If trades below 5580 for 20 minutes
Slide upto 5560-50-40-27 is seen on cards
Strong support @ 5526
And NO PROBLEM for BULLS above this level anyhow.
On the other hand,
If trade continues above 5580,
a surge upto 5621-30 is for sure
BANK NIFTY
Overall resistance @ 11350-11410
Buy btwn 11233-11251
T1- 11280-95
T2- 11309-28
Sell @ 11160
T1- 11123-10
T2- 11096-77
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.
CHOOSE YOUR BEST TRADE
Let me begin by telling you of my system
for isolating trades with odds 10 to 1 in my favor.
Those are million dollar odds.
Unfortunately, I still haven’t developed a method
for calling all the big moves all the time.
What I have done is develop a set of criteria that will,
when they coincide, tell you the odds are heavily in favor
of either an up or down move.
This method seldom speaks, but when it does, you have as close to a sure thing as you’ll ever get.
As you will see, this method will not call all the swings, but that’s not its purpose.
Its function is to segregate the super trades
from trades that are questionable.
As you will see, this method will not call all the swings, but that’s not its purpose.
Its function is to segregate the super trades
from trades that are questionable.
Trading in this manner is much easier because it allows you to take a longer term view of the market.
I have found there is no need to monitor the market on a trade-by-trade basis, or, at times, even a daily basis.
The signals are so strong that you don’t need to
concern yourself with a microscopic view.
I have found there is no need to monitor the market on a trade-by-trade basis, or, at times, even a daily basis.
The signals are so strong that you don’t need to
concern yourself with a microscopic view.
I use two major tools for selecting “bankable trades”. They are: 1) premium relationships, and 2) open interest.
When these two click, the odds are 75% in your favor. To further substantiate the 75% probability,
I also check contrary opinion, the market’s reaction to news,
trend direction, and a few chart formations.
When these two click, the odds are 75% in your favor. To further substantiate the 75% probability,
I also check contrary opinion, the market’s reaction to news,
trend direction, and a few chart formations.
by Larry Williams, excerpt from his book,
HOW TO TACKLE TRADING
The current market seems to be manic depressive
without even a shred of memory from one day to the next.
How does a trader preserve control and commitment
when faced with this challenge?
I think the first place to begin
is with the questions we ask ourselves.
Is there an opportunity here?
Where is the opportunity now?
How can I take advantage of this opportunity?
is with the questions we ask ourselves.
Is there an opportunity here?
Where is the opportunity now?
How can I take advantage of this opportunity?
Then ask yourself, how do I deal with the volatility?
Do I decrease size and stretch out the risk parameters?
Do I increase size to take advantage of this extraordinary opportunity?
Do I shorten or increase my time frames to increase my safety and profitability?
As traders we are always faced with the dual needs to seize a significant opportunity and to preserve our capital. This balancing act is at the core of trading.
Do I decrease size and stretch out the risk parameters?
Do I increase size to take advantage of this extraordinary opportunity?
Do I shorten or increase my time frames to increase my safety and profitability?
As traders we are always faced with the dual needs to seize a significant opportunity and to preserve our capital. This balancing act is at the core of trading.
Of course, you need to address the underlying fundamentals.
What are they? Are they becoming more so or less so?
Are they changing or remaining the same?
What are they? Are they becoming more so or less so?
Are they changing or remaining the same?
Define the problems you are facing and redefine them. Einstein was asked how he would go about solving a problem
if he only had 60 minutes in which to solve it.
He answered that he would spend the first 59 minutes
defining the problem. Once you’ve identified and defined the issues you’re facing, look for workable solutions.
See problems as challenges not as threats. I always assume if there is a problem, there is a solution.
Once you’ve found a solution, test it.
if he only had 60 minutes in which to solve it.
He answered that he would spend the first 59 minutes
defining the problem. Once you’ve identified and defined the issues you’re facing, look for workable solutions.
See problems as challenges not as threats. I always assume if there is a problem, there is a solution.
Once you’ve found a solution, test it.
You need to sustain an optimistic outlook.
This means not taking market conditions personally. Know that the difficulties will pass as well as the opportunities.
You can learn from difficulties and let them go even as you learn from and utilize opportunities.
Keep honing your skills and see the glass as more than half full. You can heal your trading by finding a way to understand evil even as you find a way to make the best of a situation.
Any crisis can make you stronger if you don’t let it make you weaker.
This means not taking market conditions personally. Know that the difficulties will pass as well as the opportunities.
You can learn from difficulties and let them go even as you learn from and utilize opportunities.
Keep honing your skills and see the glass as more than half full. You can heal your trading by finding a way to understand evil even as you find a way to make the best of a situation.
Any crisis can make you stronger if you don’t let it make you weaker.
So let’s go back to the original question.
Where is the opportunity here and now, and how do you go about taking full advantage of it?
When you find it, go for it.
If you don’t find it, wait for it to develop,
and carpe diem (seize the day)
Where is the opportunity here and now, and how do you go about taking full advantage of it?
When you find it, go for it.
If you don’t find it, wait for it to develop,
and carpe diem (seize the day)
(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
I have always felt like you really don't have a genuine confidence unless you demonstrate the ability to do something. You can talk about it, but you have to demonstrate it.
-BILL PARCELLS, San Jose
RELAX CORNER
JUST SMS TO YOUR PAL
*Sardar: I hav’nt slept all nite in the train.
Friend: Y?
Sardar: Got upper berth.
Friend: Y did’nt u exchange?
Sardar: oye, there was nobody
2 exchange in the lower birth..
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