DEVILISH THURSDAY FOR INDIAN MARKET?

FROM AN EXPERIENCE

As traders try to improve performance, the one piece of knowledge that is often overlooked, is self-knowledge. Most traders would benefit by simply focusing on doing more of what works and less of what doesn’t, which sounds obvious, but the reality is that most do just the opposite. Learning to identify which behaviors work and which don’t is not as fun or interesting as learning a new trading strategy or set-up.; and awareness of one’s internal state is just as critical, but that is typically not dealt with. As a result, most traders focus outward and ignore their inner process. And the way this often plays out for a trader is they trade their emotions and not the market.
Every winner needs to master three essential components of trading; a sound individual psychology, a logical trading system and good money management. These essentials are like three legs of a stool – remove one and the stool will fall, together with the person who sits on it. Losers try to build a stool with only one leg, or two at the most. They usually focus exclusively on trading systems. Your trades must be based on clearly defined rules. You have to analyze your feelings as you trade, to make sure that your decisions are intellectually sound. You have to structure your money management so that no string of losses can kick you out of the game.”

-If you are hesitating to take a position, that indicates a lack of confidence that is not necessary. Just get into the position and PLACE A STOP. Day Traders lose money in positions everyday. Keep them small. The confidence you need is not in whether or not you are right, the confidence you need is in knowing you will stick to your stop no matter what. Therefore you can actually alleviate this hesitancy to pull the trigger by continually sticking to your stops and reinforcing this behavior.

-You want to own the stock before it breaks out, then sell it to the momentum players after it breaks out. If you buy breakouts, realize that professional day traders are handing off their positions to you in order to test the strength of the trend. They will typically buy it back below the breakout point which is typically where you will set your stop when you buy a breakout. (In case you ever wondered why you get stopped out on a lot of failed breakouts).

-Embracing your opinion leads to financial ruin. When you find yourself rationalizing or justifying a decline by saying things like, “They are just shaking out weak hands here,” or “The market makers are just dropping the bid here,” then you are embracing your opinion. Don’t hang onto a loser. You can always get back in.

-Professional day traders focus on limiting risk and protecting capital. Amateur traders focus on how much money they can make on each trade. Professionals day traders always take money away from amateurs traders.

-In the stock market, heroes get crushed. Averaging down on a losing position is a “heroic move” that is akin to Superman taking a spoonful of Kryptonite. The stock market is not about blind courage. It is about finesse. Don’t be a hero.

(to be contd)

TODAY’S DAY TRADING STRATEGY

OF NIFTY FUTURES – OCT 21

Strong Resistance exists between 6088-96

If trades above 6000 a hike upto 6033-48-61

is possible on cards.

Otherwise,

A slide upto 5954-36-25 is for sure after breaching 5982

Final support @ 5910

BANK NIFTY

Buy btwn 12288-308

T1 – 12339-55

T2 – 12365-71-91

Sell btwn 12222-202

T1 – 12170-54

T2 – 12144-38-18

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.

SHORT TERM TRADERS CAN EXIT FROM ALL YOUR LONG POSITIONS AND NO BUYING IN ANY STOCKS

SHARE TIPS TODAY

Sell HDFC @ 693.4

T1 – 688

T2 - 682

Sell JINDALPOLY @ 1132

T – 1122

Sell SBIN @ 3090

T1 – 3080

T2 – 3070

Sell TATASTEEL @ 610

T – 604

WHY SHOULD FOLLOW THE TREND?

It is a statistically valid concept to have a “bias” in the otherwise random drift or a series of numbers.

It is as simple as Newton’s Law of Physics, a body in motion tends to stay in motion, a body at rest tends to stay at rest. A trend is nothing more than a momentum in a series of price movements.’

The markets only allow a few people to make money, and the majority of traders, regardless of what they might think, or say, do not know how to do it correctly (trend following).

The markets exhibit maximum perversity. This means that the trends will only come about after most of the people have lost most of their money and have already given up in disgust. Then, when they do come, and nobody believes it anymore, eventually these people have to start chasing the market, and that’s what makes the trend continue.

TRADING MISTAKES

1. Refusing to define a loss.

2. Not liquidating a losing trade, even after you
have acknowledged the trade’s potential is greatly
diminished.

3. Getting locked into a specific opinion or

belief about market direction.

From a psychological perspective this is equivalent

to trying to control the market with your expectation

of what it will do: “I’m right, the market is wrong.”

4. Focusing on price and the monetary value of a
trade, instead of the potential
for the market to move
based on its behavior and structure.

5. Revenge-trading as if you were trying get back
at the market for what it took away from you.

6. Not reversing your position even when
you clearly sense a change in market direction.

7. Not following the rules of the trading system.

8. Planning for a move or feeling one building, but
then finding yourself immobilized to hit the bid or
offer, and therefore denying yourself the opportunity
to profit.

9. Not acting on your instincts or intuition.

10. Establishing a consistent pattern of trading
success over a period of time, and then giving
your winnings back to the market in one or two
trades and starting the cycle over again.

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

For further details,

Contact Admin (Analyst) @

(0)9788563656

MESSAGE TODAY

Art is a jealous mistress.

-RALPH WALDO EMERSON, Conduct of Life

RELAX CORNER

JUST SMS TO YOUR PAL

Keep the school clean ... stay home!
Be quiet in the classroom, respect the fact that others sleep!

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