FROM AN EXPERIENCE
Do you need to long or short the market today?
If you’re a day trader, forget this question and ignore this.
But if you’re a positional player, perhaps having a holding period
of at least 5 sessions, the above question is necessary.
Let us ponder.
1. What are your chances of success
(initiating a trade that will eventually turn into a satisfactory profit)? Since you’re going to hold for several sessions, possibly facing several opening gaps along the way, might as well establish a position that you’re going to sleep with. So, unless you get the price you’re comfortable with, stay aside. Particularly practical with long holidays.
2. Is this your original plan?
2. Is this your original plan?
Are you trading according to your overall strategy or purely intraday impulse? I don’t think its very difficult to tell the difference. If you trade base on intraday impulse, you get a little more excited than usual.
3. ‘I have been dormant for some time, and I seriously need to do something’.
3. ‘I have been dormant for some time, and I seriously need to do something’.
The degree of this itchiness varies according to individuals. If you come from a day trading background, you’ll have a tougher time adjusting. After all, the mindset of ‘If I don’t do anything, I am not going to make anything either’ is in every human’s mind. Think about it. Position trading involves much passiveness, so technically, after establishing a position, you are dormant in some way.
4. ‘I am sure this is a solid short term opportunity’.
4. ‘I am sure this is a solid short term opportunity’.
I think this is the mother of all trading sin. Of course, this does not apply to day traders. But if you’re now a positional trader, stay a positional trader. Learn to let go the small fish.
Discipline is paramount for success over the LONG term. Every trader has a limited amount of capital (money) available to trade. The trader without discipline will make trades, be quick take the profit when he is right, and call his trade an investment when he is wrong.
This action of cutting winners and letting losers run will almost certainly eventually lead to trading capital being wiped out. The natural tendency in humans is to take profits. Learning to cut losing positions and let winners run is a skill that must be developed.
Have you ever caught yourself saying any of the following statements to justify inaction on cutting a losing position?
- I am holding on to this trade and hoping it recovers
- If I didn’t own it already I would be buying it here
- I just want to get back to break even and then I will get out
- The market is wrong
Everyone has said these things at some point in their trading lives, but let me tell you, any time your position requires HOPE it is likely HOPELESS!
If you say I would buy it here and you don’t want to buy more – you may be better off selling what you have!
The market doesn’t know or care what price you bought a position. The market price of a stock is the value of that stock right here, right now! Even though the market presents opportunities, market pricing is not WRONG.
While I am not giving buy sell or hold advice, I would strongly recommend that when you find yourself staring at a losing position consider selling it! If you close it out completely, you can really make an honest determination when you ask yourself, “Do I REALLY want to own it here?”
Too often I see traders let their existing positions do the talking for them. Don’t fall into that trap!
10 TRADING COMMANDMENTS
Perception is reality in the market. Adapt your style to the market, and learn to accept the market as it is, not how you wish it was.
Play great defense, not great offense. Opportunities are made up easier than losses.
Don’t confine your thinking in terms of boundaries. Expect the extreme, and don’t miss major profit opportunities.
Know your companies. Hold your stock as long as it is performing properly, cut your losses fast, and don’t “hope” for a rebound.
Risk control is important. Always quantify your risk going into a trade.
Be diligent and thorough in your research. Do your homework, recap each day, and learn from your mistakes.
Don’t get caught in a situation in which you could lose a great deal of money for reasons you don’t understand.
Respect the price action, but never defer to it. When unsure, trade “in between.”
TODAY’S TRADING STRATEGY
OF NIFTY FUTURES – JAN 12
Resistance today @ 5828-5838-5848
If trades below 5807 for 15-20 minutes,
watch a non-stop slide upto 5787-76-66
Only if sinks with volumes 5746-25
would be reached.
More details exclusively to the subscribers.
A very volatile session is expected anyway.
Brutal fight going to happen between
Bulls and Bears in today’s session.
Butterflies and cats can stay away better.
BANK NIFTY
Buy btwn 10986-11015
T1 – 11063-86
T2 – 11100-109
T3 – 11138
Sell btwn 10893-64
T1 – 10818-794
T2 – 10779-70
T3 – 10741
SHARE TIPS TODAY (JAN 12)
1) Sell ZYLOG @ 354.25
T1 – 350.80
T2 – 347.60
T3 – 344.75 - 340.50
2) Sell BOMBAYDYEING @ 439.40
T1 – 435.30
T2 – 431.25
3) Sell ABAN @ 702.70
T1 – 696.10
T2 – 693.10
4) Sell JINDALPHOT @ 195.25
T1 – 193.20
T2 – 190.50
5) Sell AMBUJACEM @ 126
T1 – 124.50
T2 – 123.50
6) Sell LUPIN @ 451.25
T1 – 446.25
T2 – 441.60
7) Sell HDIL @ 160.35
T1 – 158.70
T2 – 157.70
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
XCLUSIVELY 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
Consider 10 minutes plus and minus in each prediction, and act accordingly.
Compare the next prediction with the prediction of the previous time slot.
The predictions that you see every day on the website are written one week in advance. Advise is to take benefits from them.
The dates of high-volatility and wide fluctuation in January-2011 are: 3 (23.10), 4 (Solar Eclipse) (-11.25), 5 (-66.55), 7 (-143.65), 12, 12, 18, 24, 27, 31
You may go through the predictions with the yearly graph and the starting lines of last week predictions to ascertain the accuracy of the astrologer.
The Moon is in Revati nakshatra of the Rashi Meen.
9.15 to 11.45: The figure of Nifty will be similar act both this times. Which indicates that it may make you job on the downside first and then on the upperside with wastage of time.
11.45 to 13.15: Nifty will trace a path like the English 'W' so try to maintain a position accordingly.
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
THE PSYCHOPHYSIOLOGY OF TRADING
The paper is old (2002) but still interesting. Andrew W. Lo and Dmitry V. Repin in “The Psychophysiology of Real-Time Financial Risk Processing” report the results of their experiment to measure the emotional responses of ten traders—five highly experienced and five with low to moderate experience. They wired up these traders to plot real-time changes in their skin conductance, blood volume pulse, heart rate, electromyographical signals, respiration, and body temperature.Although the sample is very small and hence just a first stab, the authors noted some significant differences between the two types of traders. The less experienced traders, for instance, seem to be more sensitive to short-term changes in such market variables as deviations and trend reversals. Both sets of traders, however, saw spikes in their blood volume pulse in the face of volatility events.
Lo and Repin conclude that “emotion is a significant determinant of the evolutionary fitness of financial traders.”
AN IQ TEST FOR TRADERS (PATTTERN RECOGNITION)
Useful in reading charts.
Here’s the link:
http://www.mmm.pri.ee/iq/test1.html
Note: There’s a time limit.
Hope is a four letter word.An appropriate acronym for H.O.P.E could be ;
Our
Prayers
Expected.
False hope is a great source of misery and not just in the trading arema.
Prayers are always good by keeping in mind that some of Gods greatest gifts are her unanswered prayers.
Prayers are always good by keeping in mind that some of Gods greatest gifts are her unanswered prayers.
Hoping is a sign that the trades has no control over this position.Traders should never be hoping and always trying to control the amount of risk at stake at all times.Always trading-never hoping should be a traders’s motto.
THE IMPACT OF YOUR FINGER LENGTH IN TRADING?
In a study by Concordia University which analyzed the difference in length between the index finger and ring finger can determine risk taking and financial success; however, it applies to men only. It also signifies high levels of prenatal testosterone.risk-taker the man is.(Refer to ‘OUR POLICIES’ in blog archives if you have
any queries)
For further details,
Contact Admin (Analyst) @
(0)9788563656
MESSAGE TODAY
Who has self-confidence will lead the rest. -HORACE, Epistles
RELAX CORNER
JUST SMS TO YOUR PAL
Am I getting smart with you? ....How would you know?
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