FROM AN EXPERIENCE
Most often, traders have four fears.
There’s the fear of being wrong, the fear of losing money, the fear of missing out and the fear of leaving money on the table.
I found that basically, those four fears accounted for probably 90% to 95% of the trading errors that we make.
Let’s put it this way: If you can recognize opportunity, what’s going to prevent you from executing your trades properly?
Your fear. Your fears immobilize you.
Your fears distort your perception of market information in ways that don’t allow you to utilize what you know.”
***
You’ve got to bring your A game to the table each and every day. There is no sitting in a cubicle playing solitaire, visiting with facebook friends, talking with others in the break room about fantasy football, etc. that is going to get the job done for you. Your efforts, whatever they may be, will be directly related to your bottom line returns!
Past success means absolutely nothing. You are only as good as your next trade, your next week, your next quarter, etc. In addition, what you do next always has the potential to unravel whatever success you’ve acquired previously. Few careers offer you the potential for self-destruction so quickly the way trading for a living provides.
The pressure to perform will create unbelievable amounts of negative stress and energy you’ll have to deal with daily. Most people don’t have to worry or fear that being wrong will cost them their paycheck. After all, just look at economists, bankers, and politicians!
There will be little to no respect or understanding for what you do for a living. People will assume you’re a “day trading gambler.” Or, in my view, which is even worse, many idiots will express the view that they could also “trade for a living” if they decided to. This is true even in by those who’ve shown no consistent success in the markets on a “part-time basis.”
Working in isolation you’ll often miss close human interaction and the lack of a competitive “team” like atmosphere. Also, building and holding outside friendships, especially for men later on in life, are often very difficult for those who don’t meet a lot of people through their jobs.
Sitting 12 hours a day every day at the computer will wreak havoc on your overall health and fitness. Many traders are overweight, have back issues, eyesight problems, etc.
Like many highly skilled professions it requires constant education & learning. In many, but not all careers, once you’ve acquired a certain amount of skills and knowledge, little more is expected of you. In trading, you’ve got to always be in learning mode. In addition, what you think you know right now and what is working for you, will not someday in the future. That’s the way of constant evolutionary state of the marketplace.
You’ve got to be a jack of all trades. I’ve often said that if trading was the only thing I had to do, my life would be a whole lot easier. Instead, independent traders must spend time serving as their very own tax accountant and tech support guru. In my view, there’s nothing worse than a hardware or software issue that takes you away from concentrating on the markets
There will be very long work days and work weeks. Those who say you can trade successfully in 10 minutes a week are liars and charlatans. Most independent traders put in between 50 to 60 hour work weeks and are considered “grinders” rather than trading “wizards.” Remember, there are no holidays or weekends for professional independent traders – only more time to devote to charts, scans, research, and strategies!
You’ve got to have money to make money. There are very high capital requirements involved in being an independent trader as it takes a lot of money set aside from your personal assets to produce a living wage for yourself and your family.
Your “salary” will vary considerably based on things outside of your control like overall market conditions and how your strategy is in sync with the market. It is true, you’ll make 90% of your income in 10% of your time. However, overhead costs will remain constant and there’s nothing worse than having to grind out trades in an unreceptive market to “make the mortgage.”
Even when you make a lot of money and have experienced tremendous success, you’ve got to still live like a pauper. There are no golden parachutes, annual bonuses, etc. that are going to save you when you screw up in the future. And, trust me, you will screw up. You will make bad decisions. You will be on the wrong side of a trending market. It happens to everyone and it is never fun or profitable! Which is why when the sun is shining, we’ve got to always prepare for those future rainy days.
Personal, family relationships can be difficult. Like most people, when things aren’t going well, many will look for others to blame and take it out on their spouses and family members. Divorce rates are high among independent traders. The only way around that is to find endeavors that release this negative energy (like golf, hiking & daily exercise). In addition, I seldom see successful independent traders who don’t also have a very strong family support structure in place. If your life is a mess, your trading will often be as well
Distractions at home will be both numerous and frequent. As independent traders who work from home, everyone else will think you can spare time for doing other things during the normal work day (i.e. like going to the grocery store, getting the house worked on, taking the cars in for repair, mowing the grass, taking kids to the doctor, doing laundry, etc.)
In addition, there are things you’ll want to do as well (like playing golf) when you should be looking through charts that are going to distract you constantly from achieving the results you desire.
As an independent trader working a “zero sum game,” nothing you do every day as a trader other than making money will be a benefit to others or society in general. While you will have plenty of opportunities to donate to charity in order to give back something, independent traders must work really hard at finding good and effective ways to make a “real difference” for other people.
My late grand mother once said to me that
“when you die, the good Lord will ask you who on Earth you really helped freely and without personal gain. You better have a lot of names to give to him or you’re going to be in big trouble son!”
It is true – we all get caught up in our crazy game of beating the markets that we forget how others have to really struggle to “work for a living.”
Also, even the best of us fail to do enough to make a true, positive AND lasting difference in other people’s lives beyond just donating some of our profits to charity.
(to be contd)
(to be contd)
TODAY’S TRADING STRATEGY
OF NIFTY FUTURES – NOV 15
Important Intraday Supports:
S1 – 6067
S2 – 6039
S3 – 6022
S4 – 5977-67
If 6067 is broken, non-stop slide upto 6040
and if breaches that level too Nifty futures slip
even more upto 6023
and kiss the psychological mark of 6000
After breaking 6000 it would come down
5977-67
5977-67
and there do exist a final and a strong support
as per day chart
as per day chart
On the other hand,
If trades above 6102 for 15 minutes and breaks
6117 with good volume,
a hike upto 6139-59
Important trend line (seen on DAY CHART)
hurdle @ 6159
hurdle @ 6159
if crossed the level
with volume 6179 becomes possible in today's session.
BANK NIFTY
Buy btwn 12564-90
T1 – 12633-54
T2 – 12668-76-702
Sell btwn 12479-53
T1 – 12410-389
T2 – 12376-68-41
SHARE TIPS TODAY (NOV 15)
1) Sell FEDERALBNK @ 439
T1 – 435
T2 – 431
2) Sell ASIANPAINT @ 2636
T1 – 2626
T2 – 2616
3) Sell PFC @ 346
T1 – 343
T2 – 340
4) Sell EDUCOMP @ 511
T1 – 506
T2 – 501
T3 – 497
5) Sell HDIL @ 243.90
T1 – 241.90
T2 – 240.10
6) Sell JINDALSWHL @ 1790
T1 – 1780
T2 – 1770
7) Sell SOBHA @ 326.50
T1 – 323.50
T2 – 320.50
8) Sell GRASIM @ 2293
T1 – 2283
T2 – 2273
4 IMPORTANT NOTE
1.THE ABOVE GIVEN TIPS ARE MORE APPLICABLE
FOR DAY TRADERS.
2.NEVER EVER ENTER INTO A TRADE
BEFORE THE ABOVE MENTIONED LEVELS
or AFTER THE TARGETS WERE ATTAINED.
4.USE THE LEVELS CAREFULLY AND PLS PLS DO NOT TRADE ANYTHING BLIND
AN ASTRAL VIEW OF MARKET TODAY
Weekly planetary position: During the week, Moon will be transiting in Aquarius, Pisces & Aries. Mars & Mercury in Scorpio, Ketu in Gemini, Retrograde Venus & Sun in Libra, Saturn in Virgo, Rahu & Pluto in Sagittarius, Retrograde Jupiter & Neptune in Aquarius, Uranus in Pisces. Sun will shift to Scorpio on 17th Nov 2010.
As per the astrologer, One should trade only in the stocks of that sectors which are getting very strong astrologically support, since the chances of losing money in such stocks are very less.
TEXTILE & CEMENT sectors would be getting very strong ASTROLOGICAL support & buy S. KUMAR, ALOK INDUSTRIES & ARVIND MILLS on dips. Also buy, ACC, AMBUJA CEMENT & ULTRATECH in CEMENT space.
PHARMA sector would be getting ASTROLOGICAL support & watch for DR REDDY, LUPIN, DEVIS LAB & ORCHID CHEMICAL in this space.
AUTO sector too would be getting very strong ASTROLOGICAL support & buy TATA MOTOR & MAHINDRA & MAHINDRA, TVS MOTOR & BAJAJ AUTO on every decline.
BREWERIES & DISTILLERIES sector would be receiving very strong ASTROLOGICAL support in coming days. Accumulate GLOBUS SPIRIT, EMPEE DISTILLERY TILAKNAGAR INDUSTRIES, UNITED BREWERY & JAGATJIT INDUSTRIES etc
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
1. The market pays you to be disciplined.
2. Be disciplined every day, in every trade, and the market will
reward you.
But don’t claim to be disciplined if you are not 100 percent
of the time.
reward you.
But don’t claim to be disciplined if you are not 100 percent
of the time.
3. Always lower your trade size when you’re trading poorly.
4. Never turn a winner into a loser.
5. Your biggest loser cant exceed your biggest winner.
6. Develop a methodology and stick with it.
dont change methodologies from day to day.
dont change methodologies from day to day.
7. Be yourself. Dont try to be someone else.
8. You always want to be able to come back
and play the next day.
Once you reach the daily downside limit,
you must turn your PC off and call it a day.
You can always come back tomorrow.
and play the next day.
Once you reach the daily downside limit,
you must turn your PC off and call it a day.
You can always come back tomorrow.
9. Earn the right to trade bigger.
Remember: if you are trading poorly with two lots you must
lower your trade size down to a one lot.
Remember: if you are trading poorly with two lots you must
lower your trade size down to a one lot.
10. Get out of your losers.
11. The first loss is the best loss.
12. Dont hope and pray. If you do, you will lose.
13. dont worry about news. its history.
14. Dont speculate. if you do, you will lose.
15. Love to lose money. What I mean is to accept the fact
that you are going to have losing trades throughout the trading
session.Get out of your losers quickly.
Love to get out of your losers quickly.
that you are going to have losing trades throughout the trading
session.Get out of your losers quickly.
Love to get out of your losers quickly.
16. If your trade is not going anywhere in a given timeframe,
its time to exit.
its time to exit.
17. Never take a big loss. Only a big loss can hurt you.
Please review rules #5, #8, #10, #11 and #15.
If you follow any one of these rules you will never
violate rule #17.
Please review rules #5, #8, #10, #11 and #15.
If you follow any one of these rules you will never
violate rule #17.
18. Make a little bit everyday. dig your ditches. dont fill them in.
19. Hit singles not home runs.
20. consistency builds confidence and control.
21. Learn to sweat out (scale out) your winners.
22. Make the same type of trades over and over again
be a bricklayer.
be a bricklayer.
23. Dont over-analyze, procrastinate, hesitate.
if you do, you will lose.
if you do, you will lose.
24. all traders are created equal in the eyes of the market.
25. Its the market itself that wields the ultimate scale of justice.
WHY 95% TRADERS FAIL?
“Trading consists of three parts: personal psychology, money management and system development. We also agreed that trading psychology contributes about 65% to success and position sizing contributes another 30%, which leaves about 5% for system development. Furthermore, most traders ignore the first two areas and don’t really have a trading system. That’s why 95% of them fail.”
THE 10 CARDINAL RULES1. Learn to function in a tense, unstructured, and unpredictable environment.
2. Be an independent thinker versus a conventional thinker.
3. Work out a way to handle your emotions and maintain objectivity.
4. Don’t rely on hope and fear in the conventional sense.
5. Work continuously to improve yourself, giving importance to self-examination and recognizing that your personality and way of responding to events are a critical part of the game. This requires continuous coaching.
6. Modify your normal responses to certain events.
7. Be willing to face problems, understand them, and recognize that they are in some way related to your behavior.
8. Know when problems can be resolved and then apply methods to solve them. That may mean giving up some control in order to gain a different control. It may mean changes in your personality, learning self-reliance, or giving up independence and ego to become part of a trading team.
9. Understand the larger framework in which trading occurs— how the complexity of the marketplace and your personality both must be taken into account in order to develop the mastery of trading.
10. Develop the right mind-set for trading—a willingness to commit to the kinds of changes in personal habits and beliefs that will drastically alter your life. To do this requires a willingness to surrender to the forces of the game. In order to be able to play at a maximum level, you have to let go of your ego and your need to have things your way.
(Please refer to ‘OUR POLICIES’ before you leave the site)
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Contact Admin (Analyst) @
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MESSAGE TODAY
A peace above all earthly dignities,
A still and quiet conscience.
-WILLIAM SHAKESPEARE, King Henry VIII
RELAX CORNER
DONALD DUCK Vs THE RECESSION - AN EXTRAORDINARY
(DUBBING,EDITING) CREATIVITY
(DUBBING,EDITING) CREATIVITY
An extremely creative mashup of old Donald Duck cartoons,
current economic news and Glenn Beck samples.
(I think my favorite part is when he looks out the window and counts the Marxists. Goofy the Red!)
The Mexico mashup is over-the-top ridic as well.
And yes, it’s debatable whether the newspaper in the clip
should read “Obama bails out Wall St” or
“Bush bails out Wall St”, but I’ll allow it.
Watch it now and take bets on whether Fox or Disney
will be the first to scream copyright infringement
and have it taken down.
JUST SMS TO YOUR PAL
*Getting an other boyfriend or husband is like buying a house. You have to improve yourself.
DEAR FRIENDS,
LOOKING FORWARD TO YOUR VALUABLE FEEDBACK
FOR THE PROGRESS OF THE SITE.
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