KISS YOUR THURSDAY

SPECULATORS -LISTEN TO THIS OR NOT

Be a Cynic When Reading the Tape

We must be cynics when reading the tape. I do not mean that we should be pessimists, because we must have open minds always, without preconceived opinions. An inveterate bull, or bear, cannot hope to trade successfully. The long-pull investor may never be anything but a bull, and, if he hangs on long enough, will probably come out all right. But a trader should be a cynic. Doubt all before you believe anything. Realize that you are playing the coldest, bitterest game in the world.

Almost anything is fair in stock trading. The whole idea is to outsmart the other fellow. It is a game of checkers with the big fellows playing against the public. Many a false move is engineered to catch our kings. The operators have the advantage in that the public is generally wrong.

They are at a disadvantage in that they must put up the capital; they risk fortunes on their judgment of conditions. We, on the other hand, who buy and sell in small lots, must learn to tag along with the insiders while they are accumulating and running up their stocks; but we must get out quickly when they do. We cannot hope to be successful unless we are willing to study and practice—and take losses!

But you will find so much in Part Three of this book about taking losses, about limiting losses and allowing profits to run, that I shall not take up your thought with the matter now.

So, say I, let us be hard-boiled cynics, believing nothing but what the action of the market tells us.

If we can determine the supply and demand which exists for stocks, we need not know anything else.

If you had 10,000 shares of some stock to sell, you would adopt tactics, maneuver false moves, throw out information, and act in a manner to indicate that you wanted to buy, rather than sell; would you not? Put yourself in the position of the other fellow. Think what you would do if you were in his position.

If you are contemplating a purchase, stop to think whether, if you act contrary to your inclination, you would not be doing the wiser thing, remembering that the public is usually wrong.

FROM AN EXPERIENCE

The most important thing is to have a method for staying with your winners and getting rid of your losers.By having thought out your objective and having a strategy for getting out in case the market trend changes, you greatly increase the potential for staying in your winning positions. The traits of a successful trader: The most important is discipline – I am sure everyone says that. Second, you have to have patience; if you have a good trade on, you have to be able to stay with it. Third, you need courage to go into the market, and courage comes from adequate capitalization. Fourth, you must have a willingness to lose; that is also related to adequate capitalization. Fifth, you need a strong desire to win.

You have to have the attitude that if a trade losses, you can handle it without any problem and come back to do the next trade. You can’t let a losing trade get to you emotionally.

If a trade doesn’t look right, I get out and take a small loss.

In a narrow market,when prices are not getting anywhere to speak of but move within a narrow range, there is no sense in trying to anticipate what the next big movement is going to be up or down. The thing to do is to watch the market, read
the tape to determine the limits of the get-nowhere prices, and make up your mind that you will not take an interest until the price breaks through the limit in either direction. A speculator must concern himself with making money out of the market
and not with insisting that the tape must agree with him. Never argue with it or ask it for reasons or explanations. Stock-market postmortems don’t pay dividends.

Do you wish to gamble blindly in the hope of getting a great big profit or do you wish to speculate intelligently and get a smaller but much more probable profit?

BEGINNERS PLS GO THROUGH:

When primitive people have invented money, all they have in mind is to find some means to solidly show the actual exchange of goods or services between two persons or groups. Since then, any exchanges of goods have been centered on money, bearing the most tangible form of trade.
As time pass by, trading has significantly evolved in different industries where money is not the primary agent. Trading becomes a profitable venture; and had created a remarkable spot in the economy.
Today, there are many kinds of trading. Every type of trading depends on the kind of exchange that will take place. For instance, FOREX or foreign exchange trading focused on foreign currencies.
Among the many trading types, day trading has slowly etched a name in the industry. With its remarkable turn of profits, day trading has quite gained a good reputation.
What is Day Trading?
Day trading generally stands for the system of selling and buying financial tools such as bonds or stocks throughout the day.
In other words, day trading is a series of material exchanges that all happens within the day. Hence, in day trading, every piece of stock bought has its corresponding sale. The profit or deficit is identified on the discrepancies between the goods and the trade price.
The main concept of day trading is based on the premise that all of the transactions are carried out within the day to ensure that there are no changes on the current closing price.
Changes usually take place overnight, where the preceding closing price will be changed depending on the result of the day's trading activities.
Sounds easy? Guess again.
Day trading may not sound complicated and may not even look perilous to one's financial status. However, trading experts say that more people tend to lose during the day trading. Statistical reports show that nearly 90% of day traders spend more money without gaining something in return.
For this reason, it is important that every day trader should know how to deal with the matter intelligently. It takes some wits and quick thinking just to overcome any probable loss in day trading.
Here are some day trading tips for beginners:
1. Chop down shortfalls quick
The secret is to regain back what you have lost. Try to handle the situation positively and maneuver the condition to a constructive one. There is no use to cry over spilled milk. What you need to do is to reduce the losses with quick, sharp moves.
2. Go with the flow
Like traffic, taking the counter flow is not advisable in day trading. It would be better if you will just go with the flow. This means that you have to focus on the high-selling stocks and sell those that fall under "short-selling" stocks.
This is based on the belief that the development of stocks will continue to rise. Luckily, 8 out of 10 day traders find this strategy effective.
3. Control your emotions
Some day traders tend to be emotionally involved with their dealings.
In reality, day trading can really create hype. Hence, emotional people tend to act on impulse. Any good news will immediately alert day traders to expect a positive turnover of stocks. Hence, if you are too emotional, you may get excited and act without even evaluating the situation.
To avoid trouble, it would be better to control your emotions and analyze each condition first before making a move. If you lost, analyze the situation and identify where you have been wrong.
Do not take your defeats seriously. Keep in mind that an open mind is important to overcome problems encountered in day trading. This will help you achieve the profits that you want.

(to be contd)

TODAY’S DAY TRADING STRATEGY

OF NIFTY FUTURES – SEPT 9

Resistance @ 5648 & 5671

Good Support @ 5577 & 5565

Above 5610, Nifty kisses 5648 and thereafter possibly 5671

And more chances for this today seen on cards

Suppose if cuts & trades below 5565

Slide upto 5539 is seen..

But chances are remote in this direction.

BANK NIFTY

No problem for BULLS above 11127 today.

Definitely kisses 11217 & 244

And even more if travels with volumes.

Buy btwn 11199-217

T1- 11244-58

T2- 11271-89

Sell btwn 11141-25

T1- 11098-84

T2- 11071-53

SHARE TIPS TODAY

Sell MOTHERSUMI @ 185

T1 – 183.90

T2 – 182.10

YOUR BODY & MIND IN TRADING

You have to do the mental work to let go of the need to know what is going to happen next or the need to be right on each trade.
In fact the degree to which you think you know, assume you know, or in any way need to know what is going to happen next, is equal to the degree to which you will fail as a trader.
Mark Douglas The most successful traders have found a way to inoculate themselves from the stress of trading, and from the outcome of their most recent trades. Here’s how they do it: They have an unshakable belief in the fact that
1) While the outcome of any given trade is uncertain they believe in their edge over a series of trades. In other words they know the expectancy of their method and have confidence that over a series of random outcomes, the odds are in their favor.
2) Anything can happen! In other words they have learned to think of every trade like tossing a coin – they don’t need to know what will happen.
They don’t expect to either win or lose. This firm belief in the uncertainty of any given trade, while knowing that over a series of trades you will be profitable, is very liberating.
When you learn the mental discipline of letting go of the result of any individual trade you keep your mind in a state where it can easily perceive the opportunities that the market is offering.
It is not distracted by focusing on your expectations of what you think should happen – it can perceive what is most likely to happen. The Body/Mind Connection

CONTROLLING EMOTIONS IN TRADING

When we speak of "The Trader's Mindset" what are we really talking about? Many of my students and clients often ask me this question and we talk about it a lot with traders I mentor.

When we trade the markets we approach the markets each and every day with a psychological mindset or set of beliefs and emotions. New traders often enter trading with beliefs about trading and the markets that simply do not apply to the realities of trading. This is why new traders get into trades and can't get out or don't know when to take profits or get out at the bottom and get in at the top of markets. In other words they make bad trades because they are trading from inaccurate beliefs and become subject to their emotions of fear and greed.

With proper education, experience and direction these traders can turn their trading around. Usually new traders realize after awhile of experiencing large losses or working very hard and still losing that they need to change. What they thought would work does not and they recognize that their emotions are working against them and not for them in trading.

Once they get to this point, traders either quit trading or seek help to overcome their trading handicaps. If you find yourself at this point, you need to seek help from someone who is a successful trader. The help you get or don't get at this time will seal your fate as a trader. We teach you the importance of controlling yourself when trading. We call this developing "The Trader's Mindset" to think as a trader should and not become subject to your negative emotions. In order to be successful in trading, you must not fall prey to the very emotions you are trying to exploit. In short term trading when we win, someone must lose. This is a hard cold fact of short term trading! And the successful traders usually are calm and very methodical in their trading and making money from other traders who react emotionally to market events and are therefore losing money.

"The Trader's Mindset" knows how emotions effect trading and learns how to deal or master their responses to their emotions as well as other trader's emotions. So, how to we develop "The Trader's Mindset"? To begin with use stops and stick with them! By using stops you are getting out of the market on your terms before your emotions have a chance to cause you problems by staying in the trade too long and then getting out because you can't stand another dollar of loss - which for example is usually the point where you possibly should be getting ready to enter your next trade. The profitable trader usually can calmly follow the market where ever it goes thus exploiting those traders getting out of the market on emotions.

-Bennett A. McDowell

WATCH THIS PALS

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

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Contact Admin (Editor) @

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-Mahindeesh (a) Sathish

Cuddalore-2

Tamil Nadu

India

TODAY’S QUOTE

The belief that there is only one truth and that oneself is in possession of it seems to me the deepest root of all evil that is in the world.
-MAX BORN, as quoted in Judith Sherven's The New Intimacy

RELAX CORNER

JUST SMS TO YOUR PAL

Q:Why is a Sardarji standing below
a tube light with a open mouth?


A:Because his doctor advised him
“Today’s dinner should be light”

DISCLAIMER

THE RECOMMENDATIONS MADE HERE DO NOT CONSTITUTE AND OFFER TO SELL OF A SOLICITATION TO BUY ANY OF THE SECURITIES/COMMODITIES OF ANY OTHER INSTRUMENTS WHATSOEVER MENTIONED. NO REPRESENTATIONS CAN BE MADE THAT THE RECOMMENDATIONS CONTAINED WILL BE PROFITABLE OF THAT THEY WILL NOT RESULT IN LOSSES. READERS USING THE INFORMATION CONTAINED HEREIN ARE SOLELY RESPONSIBLE FOR THEIR ACTIONS. SURFING OR USING ‘tradersharmony.blogspot.com' DEEMS THAT THE SURFER ACCEPTS AND ACKNOWLEDGES THE DISCLAIMERS AND DISCLOSURES.THE INFORMATION PUBLISHED ARE FOR EDUCATIONAL AND INFORMATIVE PURPOSE ONLY AND THE USER/READERS SHOULD TAKE ADVICE OF HIS/HER ADVISOR BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.

'WHARRAE..WHA..' WENDESDAY

 

FROM AN EXPERIENCE

As traders, fear and greed are the two emotions that we commonly handle in our trading decisions.

But I believe another emotion that we also sometimes experienced would be – anger.

Most traders have learned to be calm and sensible during trading. But there would certainly be times times when we fumed at missing out a fantastic trade, for not buying more contracts of a great trade, or frustrated for committing that same trading blunder again.

We would blame just about anything or anyone when our trading suffered. Somehow we didn’t realize that the anger have originated from us.

I recently read a book called “Zero Limits” co-written by Dr Joe Vitale & Dr Hew Len. The book was quite an eye-opening read. It mentioned that we are the one who are fully responsible for any circumstances which are happening within & around us.

When we encountered another person pouring out his or her frustrations, whether they were meant for us or not, we should accept that we were partly responsible for that happening, since his or her frustrations had come into our lives.

Naturally, we are responsible for our own anger too.

The way to resolve this would be, strange it may sound, is to keep cleansing ourselves by constantly repeating the phrases 

“I love you”, “I’m sorry”, “Please forgive me” and “Thank you” to ourselves.

According to the book, these are simple but powerful words that we convey to the Divine. We connect to the Divine by expressing our love and gratitude to him. At the same time, we seek the Divine’s forgiveness of our wrong doings.

Saying these 4 phrases will cleanse the memories of greed, fear and anger associated with anything (including trading) as we give in to the Divine to handle the situation for us.

We would experience a peace of mind that the Divine is taking care of us. Another positive outcome of cleansing ourselves is that we are now open to receive the inspirations from the Divine for us to act upon.

I encourage you to read more about this ancient Hawaiian practice called Ho’oponopono from “Zero Limits” to experience this positive feeling.

I hope that in time you will gradually banish your anger not only in your trading but also in other parts of your life.

“I love you”, “I’m sorry”, “Please forgive me”, “Thank you”.

DECISION MAKING

Most traders take price swings personally. They feel very proud when they make money and love to talk about their profits. When a trade goes against them they feel like punished children and try to keep their losses secret. You can read traders’ emotions on their faces.

Many traders believe that the aim of a market analyst is to forecast future prices. The amateurs in most fields ask for forecasts, while professionals simply manage information and make decisions based on probabilities. Take medicine, for example. A patient is brought to an emergency room with a knife sticking out of his chest – and the anxious family members have only two questions: “Will he survive?” and “when can he go home?” They ask the doctor for a forecast.

But the doctor is not forecasting – he is taking care of problems as they emerge. His first job is to prevent the patient from dying from shock, and so he gives him pain-killers and starts an intravenous drip to replace lost blood. Then he removes the knife and sutures damaged organs. After that, he has to watch against infection. He monitors the trend of a patient’s health and takes measures to prevent complications. He is managing – not forecasting. When a family begs for a forecast, he may give it to them, but its practical value is low.

To make money trading, you do not need to forecast the future. You have to extract information from the market and find out whether bulls or bears are in control. You need to measure the strength of the dominant market group and decide how likely the current trend is to continue. You need to practice conservative money management aimed at long-term survival and profit accumulation. You must observe how your mind works and avoid slipping into greed or fear.
A trader who does all of this will succeed more than any forecaster.

Losing traders focus on “big-name” traders who made a killing, and they try to emulate the trader’s technique. Winning traders monitor new techniques that come on the trading scene, but remain unaffected unless some part of that technique is valuable to them within the framework of their current market approach. They often spend much more time looking at how the market seeks and destroys other traders or how traders destroy themselves. They then trade with the market or against other traders as these situations arise.

CONCLUSION:

Once again, we can note that the individuality of a trader and his comfort level and knowledge regarding his system are far more important than the latest doodad or Market guru                                                                                                                                     (to be contd)

GOLD ENTERING A VIRTUOUS CIRCLE

Fundamental and technical factors for gold are now in total harmony and gold is entering a virtuous circle that will drive the price up at its fastest pace since this bull market started in 1999.

• It is a fact that gold in US dollars (and many other currencies) has gone up 400% in eleven years or 16% per annum annualised.
• It is a fact that the US dollar has declined 80% in value against gold since 1999.
• It is a fact that the dollar and most other currencies have gone down 98-99% against gold since 1913 when the Federal Reserve Bank of New York was created.
• It is also a fact that the Dow Jones (and many world stock markets) has declined over 80% against gold since 1999.
• It is a fact that gold has made a new all time monthly closing high in dollars in August 2010.

Gold trend

We expect gold to start a substantial rise now which will continue for 5-10 months before any major correction. Gold’s technical picture is extremely strong with a continuous rising pattern of higher highs and higher lows with the steepness of the curve increasing. From much higher levels we are likely to see a correction that could last up to a year before the next rise which will last several years before we see a significant peak. Once gold has topped we do not expect the same kind of decline as after the 1980 peak since gold is likely to become part of a future reserve currency. At that point gold will be a solid but unexciting investment with very little upside potential. But that is likely to be a few years away.

In spite of a 5 times increase in the value of gold or an 80% decline against many currencies and stockmarkets in the last 11 years, most investors own no gold and still do not understand the importance and value of gold. In a world of constant money printing and credit creation leading to devaluing currencies and devaluing assets, gold reflects stability and is virtually the only store of value that cannot be destroyed by governments.

The average asset manager, fund manager, pension fund or private individual owns no physical gold and at best has a very small exposure to some precious metals stocks. And in spite of this gold has gone up over 400% in 11 years. How is that possible? For the simple reason with the relatively modest demand that we have seen in the last few years, there is not enough physical gold even at these levels. The increase in demand that we have seen has most probably been satisfied by central banks leasing or lending their gold to the bullion banks. Central banks supposedly own 30,000 tons of gold but unofficial estimates of their real holdings are at 15,000 tons or less.

So what are the factors that are likely to lead to a major rise in the gold price?

We have for several years outlined in our Newsletters the problems in the world that inevitably will lead to massive money printing and a hyperinflationary depression (see for example “Alea Iacta Est”  and  “There Will Be No Double Dip…” on the Matterhorn Asset Management website).

There are three insurmountable problems:

• Real unemployment at 22% in the US will continue to go up
• The budget deficit will increase dramatically due to the problems in the economy and in a few years time the interest on the Federal Debt is likely to be higher than tax revenues.
• None of the problems in the banking industry have been solved but merely swept under the carpet by phoney valuations of toxic debt with the blessing of governments. The circa $20 trillion that were pumped into the world economy to save the financial system in 2008-9 have had a very short term beneficial effect but solved none of the problems.

The effect of this massive $20 trillion infusion has been ephemeral since we are entering the autumn of 2010 with virtually every single economic indicator and statistic in the US deteriorating rapidly. With interest rates already at zero there is no ammunition left but one. And it is this specific last bullet that will be used to infinity in the next few years and starting very soon, namely UNLIMITED MONEY PRINTING. Every single area of the US economy will need support or printed money, whether it is the federal government, the states, the municipalities, banks, pension funds, insurance companies, the unemployed, corporations, health care, housing market, commercial real estate,  individuals, etc, etc, etc. The list is endless and many other countries will follow.

Before we talk about gold in hyperinflationary terms, let’s look at where gold is likely to reach in today’s money.

Three realistic Gold targets: $6,000 – $7,000 – $10,000:

• In the 1971 to 1980 gold cycle, gold went from $35 per ounce to $850 or up over 24 times. If we were to see the same increase in this cycle, gold would rise to over $6,000.
• The gold peak at $850 in 1980 corresponds to over $7,000 today adjusted for real inflation based on the inflation rate as calculated by JohnWilliam’s Government Shadow Statistics
•  Gold and gold mining shares were an average of around 25% of world financial asset between 1921 and 1981. Today, gold and mining shares are only 0.9% of world financial assets. If gold and mining shares were to go to 25% of financial assets, gold would go to over $31,000. But even if we assume that world financial asset would go down by 2/3^rds from here that would put gold at over $10,000.

The three historical comparisons above would put gold anywhere from $6,000 to $10,000 and this is without inflation, or more likely hyperinflation.  In a hyperinflationary environment, the price gold will go to is really irrelevant since it depends on how much money is printed. In the Weimar Republic for example gold went to DM 100 trillion. What is more important is that gold is likely to go up at least 5 times from today without inflation and with hyperinflation gold will protect investors against the total destruction of paper money and many other assets.

Wealth Protection

Gold must only be held in its physical form and the holder of gold must have direct access to the gold. We consider ETFs, gold in a bank (whether allocated or unallocated), fractal ownership of physical gold, futures or any other form of paper gold as very risky and a totally unsatisfactory method for owning gold.  Physical gold should preferably be stored outside your country of residence and outside the banking system. The holder must have direct access to the vaults where the gold is stored.

Silver

Silver has been lagging gold since its peak at over $21 in 2008. For the last few months the gold/silver ratio has been consolidating between 58 and 71. The ratio is currently around 64 and is likely to start a move down to new lows below the 2006 low at just 44.  So this is very good news for silver which is likely to outpace gold substantially in the next few years.  Silver is probably the most undervalued precious metal today and has great potential.

But there are many caveats for silver:

• It is an extremely volatile metal and is definitively not for the fainthearted.
• We only recommend physical silver owned directly by the investor.
• Physical silver currently weighs 64 times more than gold for the same amount invested and is circa 120 times bulkier (due to its lower density).
• Therefore silver is not as practical as gold as a means of payment.
• Also, silver is subject to Vat (value added tax) in all European countries. Thus silver cannot be moved freely across borders.
• Physical silver for investment purposes can be bought/sold and stored tax-free in Switzerland but if the investor takes possession, Vat must be paid.
• Due to the above factors investors should carefully consider the split between physical gold and silver.

Stockmarkets

We expected stockmarkets to finish the correction up at the end of July and resume the major downtrend in August. We also said that gold would start its major rise in August.  And this is exactly what has happened so far.

We now expect major falls in all stockmarkets worldwide over a sustained period. We would not be surprised to see the Dow down to the 1,000 area (in today’s terms) before this bear market in over. But it will not be a straight line and there will be extreme volatility. When hyperinflation sets in, stockmarkets will have a major but temporary surge.

The only stocks that investors should hold are precious metals stocks and possibly some resource and food stocks. But it must be remembered that stocks do not represent the same degree of wealth preservation as physical precious metals held directly by the investor.

Currencies

Currencies should in the next few years be looked upon as a necessary evil and not as a store of value.  All currencies will continue to decline against gold, just as they have in the last 11 years and in the last 100 years. Due to money printing by most governments, we will have a fierce game of competitive devaluations by virtually all central banks. We have seen the Euro and the pound weaken substantially and the next currency the speculators will jump on is the US dollar.  The dollar is grossly overvalued, partly due to the weak Euro, and is likely to weaken significantly due to the problems in the US economy.

Currencies only reflect relative value and not absolute value since they can be and are printed until they reach their intrinsic value of zero. It is a fallacy to measure the value of a currency relative to another currency since they are all losing value. Currencies should only be measured against real money which is gold. This is the only method that reveals governments’ deceitful actions in destroying the value of paper money. Therefore it is a mug’s game to speculate or invest in currencies since they will all decline in an extremely volatile and unpredictable market.

So are there currencies which are likely to perform better on a relative basis for funds that have to be held in paper money? We believe that Norwegian kroner, Swiss Franc, Canadian Dollar, Singapore Dollar, Australian Dollar and Renminbi will perform relatively better than many other currencies.

Government Bond Markets

The bond market is the biggest bubble in financial markets worldwide, in our opinion. Investors around the world are worried about the state of financial markets and therefore believe that government bonds represent a safe haven. These investors will receive the most enormous shock on two accounts. Firstly, no government will be able to repay the debts outstanding. So there will either be government defaults, moratoria, or money printing that totally destroys the value of the bonds. Secondly, interest rates are likely to go up significantly to at least 10-15%, totally destroying the value of the bonds.

Conclusion

We are now entering a period when most major asset classes and in particular stocks, bonds and currencies are starting a major decline. Since most financial assets in the world are invested in these three categories plus real estate which will also decline, we are likely to experience major shocks and crises in the financial system and the world economy.  Wealth protection is now more important than probably at any other time in history. Physical gold and possibly other precious metals directly controlled by the investor will be a vital part of a wealth preservation portfolio.

TODAY’S DAY TRADING

STRATEGY OF NIFTY FUTURES – SEPT 8

 

Strong Resistance @ 5624 & 5648

Above 5600 Nfutures tends to touch 5624 & decisive crossover would take it to 5648 today

Strong Support exist @ 5560

So if trades below 5585 a slide upto

5560-54 is seen.

What would happen if crosses 5648 today?

Or

What if breaches 5560?

More prominent levels only to the Subscribers

BANK NIFTY

Problem for Bulls below 11196

Buy btwn 11160-77

T1- 11206-20

T2- 11234-50

Sell btwn 11101-11084

T1- 11056-41

T2- 11027-10

  

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.

SHARE TIPS TODAY 

Sell ASTRAL @ 278

T1 – 275

T2 – 271

Sell UBL @ 430

T1 – 426

T2 – 422

HARD DIGEST

                  ACCEPTING THE FACT IS THE ONLY DIGESTION FORMULA

* If you don’t save a good portion of your earnings in successful years of trading, you won’t last during the less successful years;
* If you don’t have a solid nest egg of savings to support you while you’re learning trading, you won’t survive your learning curve;
* Everyone has a passion for trading; if you don’t have a passion for learning to trade, take a pass on financial markets and find the field of endeavor that offers intrinsic reward;
* If you’re living for your trading, you won’t make it trading for a living. Other things need to sustain you in the lean times, particularly the things that are more important than markets;
* The ratio of time spent working on your trading to time spent actually trading is predictive of long-term career success;
* In any performance field, the percentage of participants who can sustain a living from their craft is under 5%; always have a Plan B;
* No one can make you successful as a trader if you lack the requisite talents and skills; a mentor can, at best, help you make the most of the talents and skills you possess;
* Even if you are very successful as a trader, your annual income will be a fraction of your leveraged portfolio size;
* Your risk and reward will always be proportional: 
count on draw downs of at least half of what you hope to make in markets;
* Psychology alone cannot make you a successful trader, but it can make you an unsuccessful one;
* Quiet markets reveal the best traders;
* Over time, your risk-adjusted returns are more valuable than your absolute returns;
* Trading is a business and, as such, must always adapt to changing market conditions
* If you can’t make money consistently when paper trading, you won’t be successful when your capital is on the line;
* If someone promises you trading success, keep a close eye on your wallet.

  

(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

 India

TODAY’S QUOTE

 Man is a credulous animal, and must believe something; in the absence of good ground for belief, he will be satisfied with bad ones.

                                    -BERTRAND RUSSELL, "An Outline of Intellectual Rubbish,"

RELAX CORNER

JUST SMS TO YOUR PAL

 *Sardarji & his wife going to city in auto.
Driver adjusted miror.
Sardarji shouted you are seeing my wife.
Go & sit back. I will drive auto…:
 

DISCLAIMER

THE RECOMMENDATIONS MADE HERE DO NOT CONSTITUTE AND OFFER TO SELL OF A SOLICITATION TO BUY ANY OF THE SECURITIES/COMMODITIES OF ANY OTHER INSTRUMENTS WHATSOEVER MENTIONED. NO REPRESENTATIONS CAN BE MADE THAT THE RECOMMENDATIONS CONTAINED WILL BE PROFITABLE OF THAT THEY WILL NOT RESULT IN LOSSES. READERS USING THE INFORMATION CONTAINED HEREIN ARE SOLELY RESPONSIBLE FOR THEIR ACTIONS. SURFING OR USING ‘tradersharmony.blogspot.com' DEEMS THAT THE SURFER ACCEPTS AND ACKNOWLEDGES THE DISCLAIMERS AND DISCLOSURES.THE INFORMATION PUBLISHED ARE FOR EDUCATIONAL AND INFORMATIVE PURPOSE ONLY AND THE USER/READERS SHOULD TAKE ADVICE OF HIS/HER ADVISOR BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.

TASTY TASTY TUESDAY

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.

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?"

Day trading is a unique undertaking that challenges even the smartest of people.
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.

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 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.

by Larry Williams, excerpt from his book,

How I Made $1,000,000 Trading Commodities Last Year.

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?

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.

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?

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.

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.

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)

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-Mahindeesh (a) Sathish

Cuddalore-2

Tamil Nadu

India

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 Mercury News

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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