FROM AN EXPERIENCE
While some traders are more likely to fall victim to greed
(“How much could I make?!”), others have experienced loss in the
market to the point where all they can see is the fear and anxiety
(“How much could I lose?” or “How much could the market take
away from me?”).
Let’s look at some resources to help us cope with these fears.
I recommend beginning with Price Headley’s article
“The Four Fears of Trading” which lists and explains each type of
fear – it’s more than just being afraid to lose money. Headley lists
the fears as the following:
Fear of Losing Money
Fear of Missing Out (on a Move)
Fear of Letting a Profit Turn into a Loss
Fear of Being Wrong (or not being right)
Furthermore, I compiled a page of helpful resources and articles on
the Blogsite that lists additional resources from various authors.
When we’re in a trade that we expect to be right and make money,
but the price begins moving against us, we quickly feel the fear or
anxiety. We might have a stop-loss placed, but as price heads to
that level, we may feel intense anxiety. Worse, if we don’t have a
stop-loss, we may develop the “Deer in the Headlights” syndrome
where we freeze up, unable to take action as price moves quickly
against us and the loss increases.However, fear goes beyond
“Losing Money.” It can cause us to jump into a price move, ‘afraid’
that we’re missing out on the move. It can also cause us to exit a
trade far too early (before it hits our profit target)
under the “fear” of leaving money on the table
(or specifically, “Letting a profit turn into a loss”).
To overcome it, we’ll hit the exit button on a trade that is showing a
small profit when if we had more confidence and executed our plan,
we would have gained a larger profit.When we feel the fear,
we might take sudden steps to overcome it, whether that results in
jumping out of, or into a trade. It’s critical not to let the fear lead to
unhealthy behaviors, habits, or harmful coping mechanisms such as
alcohol abuse.
“Deciding when to cut your losses is one of the toughest decisions
for anyone to make, but traders at the top of their game know that
they always have to make the decisions they need to make, which
may or may not be the ones they want to make”
“In the trading world, you will either make money or lose money
on any given trade. All that matters in the end is making more money
when you’re right than you lose when you’re wrong. Knowing this,
traders have learned to accept failure as part of the game, but they
also use the information they acquire from their mistakes as a
learning tool. Frequently, what they learn from losing money is more
valuable than what they learn when they make money”
(to be contd)
Intraday Break Outs and Targets
of Nifty FUTURES (DEC 05)
of Nifty FUTURES (DEC 05)
Good Resistance @ 5201
Strong Support @ 5000
Resistance today is between 5174-5200
Supports today @ 5017 & 5000
Above 5076 no problem for NF to touch 5109 for sure
& if trades above 5110 for 5 minutes, a trek upto
5130-52-67 is very much possible
Suppose if opens & trades below 5076 for 5-10 minutes,
see a non-stop intraday slide upto 5036 & thereafter upto 5018-5000
see a non-stop intraday slide upto 5036 & thereafter upto 5018-5000
HERE ARE SOME TECHNICAL HINTS UPDATED
*After taking support at 4630 levels Nifty Futures broke the resistance 4900/4920. Markets continued its upside journey and further made high of 5062 thereby retracing 61.80% of the recent correction from 5326 to 4640.
*Nifty had retraced 61.80% of the recent correction from 5326 to 4639. However short term oscillators have started trading in overbought region. So upside rally could continue if and only if Nifty(INDEX) sustains above 5065. If this level is taken out then Nifty would test 5110.
*On downside Nifty(INDEX) now has support at 4916 and below that 4754 which are the upper and lower band of the Gap on daily chart.
*Major resistance for Nifty is placed at 5270 which is the 200DEMA.
WHAT ARE THESE..?
AppoloHosp, ShilPamed, Plastiblen, Adanient,
PrakashCon
FederalBnk, AmbujaCem,
PFC, BPCL, HindPetro
BEARS WAITING FOR
THESE STOCKS TODAY
- PURE INTRADAY
BUT HOW & WHICH TIME..?
We know the answer to that million dollar question and
catch the big one today..
Let the whole country
run behind bulls -
We are least bothered.
run behind bulls -
We are least bothered.
Bears will have their big fish in the current today and always as
we mention and that's the power of it..
It doesn't mean that we are BEARS -
we understand the move well than other traders which
makes the difference.
we mention and that's the power of it..
It doesn't mean that we are BEARS -
we understand the move well than other traders which
makes the difference.
To know more about the exact entry, exit points
and time on your mobile everyday
ma.mahindeesh@gmail.com
GET FRESH INTRADAY NEWS FROM US-
Need not believe 'tomorrows' in life and market
for they are always unstable.
Only this day, this hour, this minute
and this second belongs to you
and this second belongs to you
- JUST LIVE IT WITH US BUDDIES
WORRIES ON GROWTH FRONT
Core sector, PMI, export growth
all down in Oct; but with food
inflation cooling, more calls for
RBI to ease foot on brakes.
A day after dismal GDP numbers
were issued for the second quarter
of this financial year,
the macro economy continued
to get muted growth data on Thursday. However,
there is a kind of comfort in terms of declining food inflation
numbers, to a four-month low of
the macro economy continued
to get muted growth data on Thursday. However,
there is a kind of comfort in terms of declining food inflation
numbers, to a four-month low of
eight per cent for the week ended November 19.
Food inflation has continued to decline after Diwali, by a little over
one percentage point for a third week in a row. This should help the
Reserve Bank of India (RBI) decide to concentrate on boosting
growth by pressing a pause button on its tight monetary moves.
While the second quarter GDP growth was down at a nine-quarter
low of 6.9 per cent, day two also had disappointing data in the form
of dismal October export growth and a falling HSBC Purchasing
Managers’ Index (PMI) for the manufacturing sector in November.
As reported earlier, the growth index of eight core industries showed
stagnation, up by just 0.1 per cent in October. GDP data showed a
decline in investment rate growth in the second quarter. With the
RBI having raised policy rates 12 times between March 2010 and
this September, economists say it’s time for the central bank to
review monetary policy.
TRADE DEFICIT WIDENS
The trade deficit in October hit a four-year high of $19.6 billion, as
merchandise shipments from India witnessed a sharp decline in
growth rate to 10.8 per cent, at $19.9 bn, from 36.4 per cent in
September and a peak of 80 per cent in July. Imports grew a steady
21.7 per cent, to $39.5 bn. The balance of trade in the first seven
months of the financial year (April-October) also reached an
unprecedented, negative, $93.7 bn.
CARE Ratings’ chief economist Madan Sabnavis said the
depreciating rupee would not really help in boosting exports, due to
the euro zone crisis. However, import bills would go up, widening the
trade deficit.
During the period, exports reached $179.8 bn, growing 46 percent
year-on-year. Imports touched $273.5 bn, growing 31 per cent over
last year. “This is very serious. We will breach $150 bn in trade
deficit (for the year). The high level of trade deficit is not because
imports are growing, but because exports are falling,” commerce
secretary Rahul Khullar had said at the release of the initial numbers.
Exports across all sectors have seen a decline compared to the
previous months, while imports have remained stable.
HSBC’s PMI for manufacturing declined to 51 points in November
from 52 in October on the back of a weak rise in new business,
delays caused by power cuts and increase in input and output costs.
November data also signalled a fourth consecutive fall in
manufacturing employment.
Leif Eskesen, chief economist for India and Asean at HSBC, said
economic activity in the manufacturing sector continued to grow at
a slower clip. However, “Despite this, manufacturers still struggle
to keep up with new orders.”
INFLATION & RBI
Food inflation, on the other hand, was down for the week ended
November 19 from 9.01 per cent last week,
on the back of cooling in vegetables.
“It is not surprising that inflation numbers are falling,
as this is a kharif harvest season and we can expect the fall to
continue through December or January. RBI should go for a rate
hike pause, as inflation is falling,” Sabnavis said.
However, Siddharth Shankar, director of financial services firm
KASSA, expected RBI to cut the cash reserve ratio rule, instead
of its policy rates. “Going forward, I feel RBI will ease liquidity
in the market by reducing the CRR. This will help in easing the
crunch in the system,” he said.
On the other hand, the inflationary pressure was maintained in fruit
and protein-based items like milk and eggs, meat and fish.
Overall inflation has remained over nine per cent for 11 months in a
row till this October. The impact of food inflation on overall inflation
would be a key factor in deciding RBI’s moves, analysts said.
Food inflation has a little over 14 per cent weight in the Wholesale
Price Index, on which inflation data is based.
Jim Rogers Shorting Stocks, Long Commodities
and Currencies
and Currencies
Listen to this before you go long for short term in any stock and then decide
SIMILES & METAPHORS
Similes and metaphors play an important role in both the internal thought-process of a day trader as well as in communication between two traders. To describe the emotional reactions coupled to the movement of a stock in likeness to a rollercoaster, or to compare averaging down in hopes of breaking even to digging one’s self out of a hole is to use simile to quickly illustrate a particular situation as clearly and succinctly as possible. Every trader uses these analogies, each having his own favorites, and they are used to add structure to an environment that often lacks useful tools for explaining particular occurrences.
Ultimately, metaphors and similes can be used by a trader to keep his mind in the right place, and maintain emotional control. By metaphorically comparing trading to baseball or basketball, the Michael Jordan truism about never missing a shot he didn’t take or Babe Ruth’s statistical record for strikeouts helps the trader keep in the back of his mind the inalienable reality that he won’t get a hit every time he swings the bat.
Some traders choose to relate trading to fighting a war, conducting scientific research, or any number of analogous endeavors. The best metaphors and similes are those with which the trader can most easily identify. These easily identified intellectual aids, when utilized to enhance trading and the trader’s sense of control, in the end, will increasable productivity, and most importantly, profitability.
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