FROM AN EXPERIENCE
1. They plan every single trade. EVERY SINGLE ONE.
Every trader I’ve talked with that makes money consistently
knows the following about every single trade they take before
they even begin entering a limit order into their trading platform:
a) the highest price they are willing to pay (if they are going long)
or the lowest price at which they are willing to sell (if they are
going short)
b) their profit target where they will exit if they are “right”
c) their stop loss where they will exit if they are “wrong”
d) the risk/reward ratio of the trade
e) the exact percentage of their account they are risking
b) their profit target where they will exit if they are “right”
c) their stop loss where they will exit if they are “wrong”
d) the risk/reward ratio of the trade
e) the exact percentage of their account they are risking
Lots of traders do one or two of these things. Few do all of them.
In simple terms they know exactly what they want to pay,
how much money they anticipate making (or losing) and a very
clear idea on the probability of the trade working out.
Although you might think that every great trader uses hard
stops that are pre-programmed in, many don’t . However,
they are highly disciplined and when their stop loss number
comes up they are out. Most traders don’t have that type of
hard-core discipline and so a hard stop loss is still their best option.
2. They stopped trying to pick tops and bottoms years ago
Nearly all of the classes, courses and webinars you’ll find on the
Internet talk about using support and resistance of some type
to find where a market is turning and how to get in before or while
it does.
The funny thing is that only a very few successful traders I have
ever talked to trade that way. Simply put, 95% of the traders
out there that make money are buying higher highs and selling
lower lows. They do the exact opposite of nearly everyone
out there because they found out long ago that picking tops
and bottoms is a sucker’s bet. One trader described it to me
by saying that it’s much easier to just participate in what a
market is already doing than trying to guess when that
behavior will change. Flip-flop your strategy to agree with
what the market is doing rather than guessing on when it
will change its mind, and you’ll be in a much better position
to make money trading.
3. They are patient with winners – and ridiculously
impatient with losers.
Most traders have a great deal of patience with their losers
but get nervous about locking in gains and sell them to
quickly – the exact opposite of what wealthy traders do.
Wealthy traders realize that they may actually have more
losing trades than winning trades so they quickly get out when
they are wrong. It is the only way to ensure that they can give
their winners the attention they deserve.
They coddle their winners and kick their losers to the
curb without a second thought.
4. They trade one market. ONE
I’ve talked with great traders who can trade futures, forex and
stocks at the same time. They are a gifted tiny minority.
The vast majority of successful traders concentrate on one
market and become so comfortable with it that they
begin to “know” the behavior of that market just watching
price and volume. Test yourself – if you aren’t able to get rid
of all your charts and simply look at price and volume to trade,
you’re probably not concentrating enough on one market in
order to know its moods. What we’re really talking about here,
of course, is not the mood of the market itself but the moods
of the market participants!
Focus on trading one market exceptionally well rather
than try to trade whatever’s hot – that’s how wealthy traders do it.
5. Their benchmark for success is anything but money
Money changes everything. It sure does. We’re all in this to
make money. The trouble is, when traders use the amount
of money they make to judge their own success, something
happens to them – to all of us, really – that clouds our
decision-making ability.
Wealthy traders have realized this and instead focus on other
things to determine if they’ve had a successful day. Whether
it be how well they were able to execute on their trading
plan (see rule #1), or their overall ability to predict
short-term movements in whatever they are trading, they
know that if they do those things correctly, the money will follow.
Yes of course the money is important. Any trader who says
otherwise is a fool. Why else would we put ourselves through
this daily ride. But there is something about making it a
secondary focus that allows the best traders to make
better decisions. The growing trading account simply becomes
a nice result – a side benefit if you will – of making good
decisions and reading the market well.
Dennis Gartman is famous for boiling down great trading to one thing: “Do more of what is working and less of what isn’t.”
Sure makes a lot of sense to me
(to be contd)
TODAY’S TRADING STRATEGY
OF NIFTY FUTURES – DEC 2
No problem for Bulls above 5976
They would take Nifty to 6018-35 for sure.
and a maximum hike today upto 6049-54 is seen
on day chart if traded with good volume
What if not cuts yesterdays high (5991)
& trades below 5976?
If happened watch a slide upto 5946-33
If that too breached, more slide upto 5918
is seen on cards
Strong (day) support @ 5918
BANK NIFTY
Buy btwn 12411-42
T1 – 12493-519
T2 – 12534-44
T3 – 12576
Sell btwn 12307-276
T1 – 12224-199
T2 – 12183-172
T3 – 12142
SHARE TIPS TODAY (DEC 2)
1) Sell HEROHONDA @ 1922.25
T1 – 1910.50
T2 – 1902.50
2) Sell BAJAJ-AUTO @ 1569
T1 – 1563
T2 – 1558
3) Sell SESAGOA @ 299.25
T1 – 297.70
T2 – 296.40
IMPORTANT THINGS TO BE NOTED
1. NEVER EVER COVER THE POSTION TILL TARGET1
IS ACHIEVED (TAKE YOUR OWN DECISION AFTER T1)
2.NEVER EVER ENTER INTO A TRADE
BEFORE THE ABOVE MENTIONED LEVELS
or AFTER THE TARGETS WERE ATTAINED.
3.STOPLOSS LEVELS, REVERSE TRADING
& MORE INTRADAY TIPS IN MARKET HOURS
EXCLUSIVELY TO THE SUBSCRIBERS
Disclosure:
Solely I have all the rights to stop the free trials
provided in this space at any moment.
Pls subscribe as soon as possible,
join hands with us and enjoy.
AN ASTRAL VIEW OF MARKET TODAY
Stock Market Prediction for 2nd December 2010
Transiting Moon will be passing through Virgo Zodiac sign. Transiting Moon will be in applying aspect with Transiting Jupiter, but Moon would be void of course after 10.00, it means Moon would not make any aspect with any planet in this sign, which would create some problem for Indian stock market. However, Indian stock market may show stability. Market may go up between 9.39 and 10.04. Market trend may change after 10.10. Market may gradually go up. Market would go up during last trading session.
Transiting Moon will be passing through Virgo Zodiac sign. Transiting Moon will be in applying aspect with Transiting Jupiter, but Moon would be void of course after 10.00, it means Moon would not make any aspect with any planet in this sign, which would create some problem for Indian stock market. However, Indian stock market may show stability. Market may go up between 9.39 and 10.04. Market trend may change after 10.10. Market may gradually go up. Market would 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
(Please refer to ‘OUR POLICIES’ before you leave the site)
For further details,
Contact Admin (Analyst) @
(0)9788563656
BEST PRACTICES FOR TRADERS
1) Preparation to start the day and week: Having a clearly formulated strategy to guide trading decisions;
2) Keeping score: Using a trading journal to structure learning, document progress, and sustain positive motivation;3) Managing risk and maximizing opportunity: Trading with more risk/size when trading well and clearly seeing opportunity and pulling back risk when drawing down, trading poorly, and perceiving little opportunity;
4) Taking breaks: Stepping back from markets periodically to gain fresh perspective, reformulate views, and tweak strategies;
5) Treating trading as a business: Limiting overhead, having a clearly defined plan to move toward profitability, focusing on distinctive areas of strengths and opportunity.
So much of what makes traders great is what they do between market sessions, how they do it, and how much of it they do.
TRADING DECISION
There is a huge difference between a wish and a decision. A wish is a negative and puts the trader in a frozen state waiting for something to happen (generally associated with trying to get even on losing trades). That is negatively charged energy. Decisions, on the other hand, are positively charged energy. It makes the trader take action. Taking action is taking responsibility. You alone are responsible for your current mental state or condition. Decisions can be both good and bad of course.
The sooner the trader realized the bad decision, the sooner they can act to correct it.
The first step in the decision-making process is to realize that what you are doing is not working. Remember that falling down is a positive motions is you bounce right back. Make a list of the positive and negative things that will happen when you take action on the decision.
Don’t expect instant gratification if you make the decision. Decision-making is a process that begins with the first step but these steps are the foundation for a stronger behavioral structure. This structure will give you the confidence in your trading.
Confidence plays a key role in successful trading. Having the confidence necessary for successful trading can help the trader in difficult trading environments.
Whereas one trader lacking confidence and good decision-making skills may be frozen and unable to act, the trader who has taken the time to build this foundation will be prepared to take the appropriate actions.
MESSAGE TODAY
-HENRY JAMES, The Art of Fiction
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