FROM AN EXPERIENCE
The best traders don’t think about how many millions they need to
make each year. They focus on making the best trading decision
they can with each trade they make. And if there isn’t a good
trading opportunity right now, they have the discipline to
do nothing and just wait. Concentrating on one trade at a time is
their process.
When you expect something, and it doesn’t deliver
as expected, what occurs? Disappointment. By not having
expectations of the market, you are not setting yourself up
for this inner turmoil. Douglas states that the market
doesn’t generate pain or pleasure inherently; the market only
generates upticks and downticks. It is how we perceive and
respond to these upticks and downticks that determine how
we feel. This perception and feeling is a function of our beliefs.
If you’re still feeling pain when taking a loss according to your
plan, you are still experiencing a belief that your loss is somehow
a negative reflection on you personally.
O.K
Let’s take a break and look at some trading psychology tips.
Today our ideas are coming from one of my favorite books that’s
not really trading-oriented. We’re going to be looking at a few
highlights from a book called “The Power Of Focus”,
by Jack Canfield, Mark Hansen, and Les Hewitt. While there’s no
way to do the book justice in our limited space here, hopefully
you’ll take away some of the more important pieces of the book.
And best of all, you’ll be able to apply them immediately.
Your habits will determine your future. This is not news to
any of us, but what I found interesting was something of an
aside in the book. The book contends that the results of bad
habits don’t show up until well after the habit has been learned.
That’s unfortunate too, as we all know that it’s incredibly difficult
to unlearn something. The implication is that that you’ll be
engaging in a destructive behavior, but you may not know it
until it’s far too late to actually do anything about it. In fact,
up to 90% of your everyday behavior is based on habits. Have
you made it a habit to spend an hour a day preparing and
doing trade research? Have you committed to waking up an
hour earlier to plan your trading or work day? Or do you hit
the snooze button a few times, and miss out on reviewing
the news and charts of your positions? Habits are the key to success.
Your goals must have a number. And this doesn’t just mean the
total returns on your trades, as an overall goal is still too ambiguous
to actually use in making daily plans. You need to know how
many trades per day, week, or month it will take to achieve
your goal. Of course, you’ll also need to know what type of
return you need to average on each trade to reach that goal.
As the book states so accurately, “a goal without a number
is just a slogan.”
Take decisive action. They say 80% of success is showing up,
and that’s probably a pretty good rule of thumb. So how does
one “show up” to be a trader? By taking trading action!
And if you’re not taking the action you know you should
be taking, you absolutely must understand and admit that
you’re procrastinating. Stings, doesn’t it? But recognizing
the truth is the first step to attacking any problem.
The book explains six reasons for procrastination; think about
which ones apply to you.
1) You’re bored.
2) You’re overwhelmed.
3) Your confidence has slipped.
4) You have low self-esteem.
5) You don’t enjoy what you do.
6) You’re easily distracted.
So, the reasons for your procrastinations may be diverse.
However, the resolution of all of them is the same. The first thing
you need to is ask yourself a LOT of questions — mostly “why”
questions, but also a lot of “how” questions. Why are you bored?
Why has your confidence slipped? Why don’t you enjoy trading?
Then move on to the other set of questions. How can you feel less
overwhelmed? How can you prevent distraction? How can you feel
good about trading again? And finally, the last portion of the book
details how you can cement that change, once you’re happy with
your new you.
Become an active decision-maker. There is a difference between
being willing to make decisions, and being proactive about
making decisions – being proactive puts you in control.
To do this, there are four steps to follow:
1) Think – About what action will best accomplish your goals,
and why.
2) Ask – The questions that must be answered to make an
intelligent decision.
3) Decide – Establish if-then scenarios for each option,
and choose the best “then.”
4) Act – Then repeat the whole process, again and again.
(to be contd)
TODAY’S TRADING STRATEGY
OF NIFTY FUTURES – APRIL 4
NF would find resistance @ 5938
If stays above 5870, hike upto
5886-96 and after that 5905-15 is possible
Maximum hike upto 5928-38 is seen.
Suppose if trades below 5869 for 15 minutes
see a slide upto 5828-5800
and if 5800 too breaks watch more panic
upto 5782-75 & 5750-44
Session would be very volatile today
AN OVERALL VIEW OF NIFTY FUTURES:
ULTIMATE SHORT TERM TARGETS
FROM HERE ON – 5900 – 5945 – 5986 – 6034
Between 6040-60 a corrective wave start is
expected but levels have to be confirmed still.
LONG TERM VIEW: BULLISH BULLISH BULLISH
ENJOY OUR POSITIONAL
CALLS NOW
CALLS NOW
Buy LICHSGFIN @ 233.50
Target – 242.80
Buy ESCORTS @ 145.50
Targets – 151.30, 155.30
Buy ESCORTS @ 145.50
Targets – 151.30, 155.30
Buy AREVAT&D
@ 251.50
Target1 – 259.60
Target2 - 263.50
Target2 - 263.50
Buy BIOCON @ 357
Targets – 366.10, 381
Buy SUZLON @ 48.80
Targets – 50.10, 51.75, 53.25
Note: The above said scrips are recommended as
positional calls (not for the day traders)
and you have to hold it for 2-3 weeks
for the targets
India’s population is now pegged at 1.21 billion, an increase of more than 181 million in the last 10 years, according to the provisional 2011 Census report released on Thursday.
The population comprising 623.7 million males and 586.5 million females is almost equal to the combined population of the United States, Indonesia, Brazil, Pakistan, Bangladesh and Japan put together.
The population has increased by more than 181 million during the decade 2001-2011, the report said. The growth rate in 2011 is 17.64 per cent in comparison to 21.15 per cent in 2001.
The 2001-2011 period is the first decade – with exception of 1911-1921 — which has actually added lesser population compared to the previous decade, Registrar General of India and Census Commissioner of India C Chandramauli said in presence of Home Secretary Gopal K Pillai.
Among the states and Union territories, Uttar Pradesh is the most populous state with 199 million people and Lakshadweep the least populated at 64,429.
The combined population of UP and Maharashtra is bigger than that of the Unites States.
The highest population density is in Delhi’s north-east district (37,346 per sq km) while the lowest is in Dibang Valley in Arunachal Pradesh (just one per sq km).
Child sex ratio in 2011 is 914 female against 1,000 male – the lowest since Independence.
According to the data, literates constitute 74 per cent of the total population aged seven and above and illiterates form 26 per cent.
The literacy rate has gone up from 64.83 per cent in 2001 to 74.04 per cent in 2011 showing an increase of 9.21 per cent.
RISK AND CHANCES
Here are some interesting quotes from ‘Risk & Chance’ (Dowie and Lefrere) that have a relevance to trading and speculation more generally:
Henslin (1967) notes …dice players behave as if they are controlling the outcome of the toss. One of the ways they exert this is to toss the dice softly if they want a low number, or hard for a high number. Another is to concentrate and exert effort when tossing. These behaviours are quite rational if one believes that the game is a game of skill.
As a trader I wish I could figure out what portion of my trading results can be attributed to luck, and what portion to skill. The problem is that trading seems to be a game of both skill and luck, so we spend half our time figuring out just how hard we should be throwing the dice. Splitting skill from luck is a problem for all speculators, but high frequency traders can find out much sooner than low frequency macro traders, who only take a few positions each year. In the latter case, it may be close to impossible to look back to a macro trader’s career and make this determination with any reasonable level of certainty.
De Charms(1968) stated that “Man’s primary propensity is to be effective in producing changes in his environment. Man strives to be a causal agent, to be the primary locus of causation for, or the origin of, his behaviour; he strives for personal causation.
The polar opposite of mastery is helplessness.
In the markets, those with an ‘edge’ over the market can be thought of as masters, while those who don’t believe in outperformance of the averages can be thought of as helpless. Of course, in this case the helpless are not truly helpless; they may accept they have no influence on the outcome but provided they accept the proven long-term upward drift of the market, they can choose the path of the low-cost index fund, saving time and money against the perceived masters (on average, the indices outperform). This doesn’t apply to the foreign exchange market.
Lefcourt (1973)… concluded that “the sense of control, the illusion that one can exercise personal choice, has a definite and positive role in sustaining life.” Thus, people show a preference for controllable over uncontrollable events.The distinction between skill and chance situations is further complicated by the fact that positive outcomes are most often attributed to the actions that precede them.
Think of many of the individuals who have made big gains in the housing market, founders of certain successful businesses, and some flavour-of-the-month fund managers. Positive results, especially those associated with a large monetary gain, often imbue individuals with a false sense of superiority and foresight, or even control, over events that are actually largely outside of their control.
RADIATIVE LEVELS 10 MILLION TIMES HIGHER
MESSAGE TODAY
Happiness is not something you postpone for the future;
it is something you design for the present.
- Jim Rohn
RELAX CORNER
JUST SMS TO YOUR PAL
u may lose ur teeth,ur money &even lose ur mind.
But 1 thng ul nvr lose is ur gud look
bcoz u cant lose wat u dont have...
hahaha ;D
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