FROM AN EXPERIENCE
Have you ever experienced doing well for a period of time and then something just snaps and you end up losing a significant amount of money? It happens in a variety of ways and for different reasons, but what typically follows is a self beating-up process, and/or a promise that you will never do THAT again!
Sound familiar? It’s a very common phenomenon.
Unfortunately, the promise you make to yourself typically gets broken again…and again…..and again. As the pattern continues, the potential for more psychological damage becomes very real.
Over many years as a clinical psychologist people have come to me who are struggling with repetitive problem behaviors. Many of them previously tried various forms of ‘willpower’ without any long-lasting success.
As a trading psychology coach and consultant I can tell you that most traders see the solution as an act of willpower or “trying harder next time”. But I have news for you. Although willpower is certainly necessary to be a good trader, it alone will not break a deeply rooted problematic pattern. If it was simply a matter of ‘doing it differently next time’, then many traders would of already done that and the pattern would never appear again.
So, how does one break the pattern? I suggest that the ‘promise’ you make to yourself is not only about willpower, but also a promise to learn about what makes you tick, such as your emotions and your sub-conscious process.
If we look into some of the characteristics of profitable traders, we notice....
They are experienced – Probably the most horrifying and worst myth shot out to anyone considering trading for a living is that you will compound millions in an extremely short amount of time. The only true way to make every day profitable comes through experience, and countless hours learning is crucial to longevity of success.
They know the damage they are capable of – Notice I didn’t say potential or profits here. The best traders I know of understand their limits, and seem to focus more on what can go wrong than what can go right. They are not easily convinced of lucrative outcomes, and have a very high sense of self-awareness.They trade to make money, not to be right – They understand the strengths and possible pitfalls of what it is they do for a living, and use that knowledge to curb their emotional output.
They have an edge and know how to use it – They understand that without it they wouldn’t last long
They have a gameplan, and follow it explicitly – Each trade is planned and opportunities are scouted for before any trading takes place. They steer away from the killer of all killers: overtrading.
They manage risk – Regardless of how much conviction they have on a trade, they will still do what they can to avoid the potential of any losses and understand rule #1 about trading: anything can happen.
They work obsessively – They follow each turn, each piece of info that comes out in regards to their trade, and follow any underlying information relevant to failure or success.
They only access the best information – Information rules in trading, and having some of the best translates to money. Using the wrong information leads to failure.
They think about the trade, not the money behind it – Focusing on money can destroy your means to objectively assess the trade itself.
They are constantly learning – Just when you think you know it all about trading, a new curveball gets thrown your way, not to mention there are continued means and methods to be learned about making money. Even the most highly successful trader I ever knew, a multi-billion dollar portfolio manager, has a team of fundamentalists and technicians come in to train and retrain himself and his traders.
They are active – Activity sparks creativity, a very crucial part of trading.
They have patience – They understand that the money will come, but everything needs to be in place, first.
ADVANCE-DECLINE LINE -- MYSTERY ??
What the hell behind the AD-line which keeps on declining continuously for more than a year in this rising market? If you check the NSE stock most of them are either moving sideways or trending downwards only the Nifty 50 pack is moving up rest are still in the silent mode. What could be a possible reason for this kind of action. Definitely it doesn’t sounds like euphoria in the market. But market is moving upside in rotational trading fashion.
Think it over………..In need of Comments from Intelligent Traders,Investors & Readers
TODAY’S DAY TRADING STRATEGY
OF NIFTY FUTURES – OCT 20
Strong resistance between 6141-52 for now.
If trades above 6042 for 15 minutes
Watch a hike upto 6058-78-92
If 6090 is crossed with good volumes
see more hike upto 6111-6122
Otherwise, if breached 6001 watch a non-stop slide upto
5981-71 & even more upto 5955-40 in panic with
volumes.
BANK NIFTY
Buy btwn 12299-319
T1 – 12352-68
T2 – 12379-85-406
Sell btwn 12231-11
T1 – 12177-68
T2 – 12151-44-23
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.
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SHARE TIPS TODAY
Sell BANKINDIA @ 518.70
T1 – 515
T2 - 511
Sell BHARTIAIRTEL @ 326.75
T – 323.75
Sell BHEL @ 2499
T – 2489
WHAT IS DISCIPLINE?
A day trader should leave no room for fear and greed to take over, otherwise, this will be the key to your losses. A good trader should be disciplined, make discipline a habit, and act in accord with trading systems/strategies. You can do your trade in a consistent and reliable manner this way. Certain situations require an individual to make decisions based on their pre-set criteria and parameters.
You should make it a point to habitually follow your trading system/plan. When you’re making trading decisions, don’t let your emotions rule you. A day trader should always be disciplined, and once you attain your objective, leave the market first. Oftentimes people plunge in deeper because they are influenced by greed and fear.
There are also day traders who are quite reluctant to lose money. For instance your stock goes down,and you’re still hoping that after some time it will rise again. And to your surprise, the share price goes further down. If only you were not reluctant to lose money, you could have sold it the first time its price went down, and prevent further loss.
Day traders need to make fast executions and confirmations of the trade, so you must have a fast internet connection. They also need to receive and deliver quotes, news, and other pertinent market data. A fast internet connection allows you to make your day trading in a timely fashion. If you’re serious with your day trading. You would need hardware and software requirements to put a sufficient platform at home for online trading.
You can practice through simulated trading before using real money. Here you can incorporate all your trading techniques and see if they actually work. Don’t be a scared to lose a certain amount of money. But it doesn’t mean that you should not limit your losses. Most importantly, you should learn from your past losses. Becoming a day trader is a simple thing. But in any case it requires dedication, time and effort. You will reap profits that you’ve never imagined, if you are able to put all of these things together.
WHAT ASTROLOGY SAYS THIS WEEK?
Free Daily and Weekly Stock Market Prediction
and Forecast for October 2010 : 18th October 2010 to 22nd October 2010
Planetary position during October 2010
Sun will transit from Libra sign.
Mercury will transit from Libra sign.
Venus will transit from Libra sign, Venus would retrograde.
Moon will transit from Aquarius and Pisces sign.
Mars will transit from Libra and Scorpio sign.
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 20th October 2010
Transiting Moon will be passing through Pisces Zodiac sign. Transiting Moon will be in applying aspect with Transiting Jupiter, which indicates Market may volatile during first trading session, but as sessions progress, Market may gradually go up, at the same time some profit booking would be seen at higher levels. Market may go up between 10:38 and 11.10. Market would gradually go up during last trading session.
Transiting Moon will be passing through Pisces Zodiac sign. Transiting Moon will be in applying aspect with Transiting Jupiter, which indicates Market may volatile during first trading session, but as sessions progress, Market may gradually go up, at the same time some profit booking would be seen at higher levels. Market may go up between 10:38 and 11.10. Market would gradually 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
This AEI seminar from last week is highly worth watching on the next wave of the financial crises as it ripples through currencies, mortgage markets, and the banking system.
WATCH IT GUYS
This AEI seminar from last week is highly worth watching on the next wave of the financial crises as it ripples through currencies, mortgage markets, and the banking system.
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MESSAGE TODAY
You can’t blame your opponents for applying a strategy that beats your brains out with regularity
-BILL CLINTON, speech at Campus Progress
NationalStudent Conference,July 13, 2005
-BILL CLINTON, speech at Campus Progress
NationalStudent Conference,July 13, 2005
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