IMPULSE MONDAY

FROM AN EXPERIENCE

50 Trading Rules

1. Plan your trades. Trade your plan.

2. Keep records of your trading results.

3. Keep a positive attitude, no matter how much you lose.

4. Don’t take the market home.

5. Continually set higher trading goals.

6. Successful traders buy into bad news and sell into good news.

7. Successful traders are not afraid to buy high and sell low.

8. Successful traders have a well-scheduled planned time for studying the markets.

9. Successful traders isolate themselves from the opinions of others.

10. Continually strive for patience, perseverance, determination, and rational action.

11. Limit your losses – use stops!

12. Never cancel a stop loss order after you have placed it!

13. Place the stop at the time you make your trade.

14. Never get into the market because you are anxious because of waiting.

15. Avoid getting in or out of the market too often.

16. Losses make the trader studious – not profits. Take advantage of every loss to improve your knowledge of market action.

17. The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.

18. Always discipline yourself by following a pre-determined set of rules.

19. Remember that a bear market will give back in one month what a bull market has taken three months to build.

20. Don’t ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point.

21. You must have a program, you must know your program, and you must follow your program.

22. Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.

23. Split your profits right down the middle and never risk more than 50% of them again in the market.

24. The key to successful trading is knowing yourself and your stress point.

25. The difference between winners and losers isn’t so much native ability as it is discipline exercised in avoiding mistakes.

26. In trading as in fencing there are the quick and the dead.

27. Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success.

28. Dream big dreams and think tall. Very few people set goals too high. A man becomes what he thinks about all day long.

29. Accept failure as a step towards victory.

30. Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Don’t let ego and greed inhibit clear thinking and hard work.

31. One cannot do anything about yesterday. When one door closes, another door opens. The greater opportunity always lies through the open door.

32. The deepest secret for the trader is to subordinate his will to the will of the market. The market is truth as it reflects all forces that bear upon it. As long as he recognizes this he is safe. When he ignores this, he is lost and doomed.

33. It’s much easier to put on a trade than to take it off.

34. If a market doesn’t do what you think it should do, get out.

35. Beware of large positions that can control your emotions. Don’t be overly aggressive with the market. Treat it gently by allowing your equity to grow steadily rather than in bursts.

36. Never add to a losing position.

37. Beware of trying to pick tops or bottoms.

38. You must believe in yourself and your judgement if you expect to make a living at this game.

39. In a narrow market there is no sense in trying to anticipate what the next big movement is going to be – up or down.

40. A loss never bothers me after I take it. I forget it overnight. But being wrong and not taking the loss – that is what does the damage to the pocket book and to the soul.

41. Never volunteer advice and never brag of your winnings.

42. Of all speculative blunders, there are few greater than selling what shows a profit and keeping what shows a loss.

43. Standing aside is a position.

44. It is better to be more interested in the market’s reaction to new information than in the piece of news itself.

45. If you don’t know who you are, the markets are an expensive place to find out.

46. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word – Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what does happen.

47. Except in unusual circumstances, get in the habit of taking your profit too soon. Don’t torment yourself if a trade continues winning without you. Chances are it won’t continue long. If it does, console yourself by thinking of all the times when liquidating early reserved gains that you would have otherwise lost.

48. When the ship starts to sink, don’t pray – jump!

49. Lose your opinion – not your money.

50. Assimilate into your very bones a set of trading rules that works for you.

                                                                                                                                                         (to be contd)

THIS IS WHAT HAPPENED LAST WEEK 

We predict things in market with great accuracy, that’s been proved once again last week.

PUT OPTIONS in 5100 & 5000 giving immense profits and still we expect more from Tuesday till 21^st of  APRIL in that particular trade
Our subscribers already booked twenty points profit in 5100 PE and are holding 5000 PE  @ Rs13.05
Now everyone is talking about Britain, China, America, GDP etc. etc. etc and search reasons world wide..
What's the use of watching a film when the climax is near..?

Today there will be a dead cat bounce to kiss the 50% retracement levels of Friday swing.

Just wait and watch the power of our M I D technique

To enjoy the benefits everyday in Indian market, subscribe us through mail (ma.mahindeesh @ gmail.com) or the contact number given above

ALL THE BEST PALS

WHAT NEXT..?

As already told, if the low of FRIDAY not broken, 50% bounce back (of the Friday fall) is very much possible today.

But we insist again, use this opportunity only to sell-sell-sell 

NO 'LONG' trades will be initiated in NIFTY futures by us till 21st of this month

NIFTY LEVELS FOR APRIL 16

OVERALL SUPPORT @ 5150

Day’s Supports   @ 5205-5174

Day’s Resistance @ 5247-5263-5350

If cuts and trades above 5213 for 10 minutes hike upto 5245

and 5263 is possible

Suppose if trades below 5212 for 5 minutes, see a non-stop slide upto 5180-74

INDIVIDUAL SCRIPS - We are up to sell today are RELCAP & INVENTURE 

More news, levels, exact time to initiate the trade - everything solely to the subscribers

NIFTY OUTLOOK

Nifty opened the week on a negative and broke the mentioned support of 5200 and further made a low of 5190 on Wednesday. Thereafter Nifty took support and recovered all its losses and made a high of 5306. However on higher levels selling pressure was witnessed and nifty shed all its gain and made a low of 5185 on Friday. Finally Nifty closed at 5207 with a loss of 2.34% on w-o-w basis.

8 TRADING REGULATIONS

1. Never outshine the master. (You can trade better than your mentor, just don’t expect him to like it. You’ll also learn more from people who you help, than from those who you work against.)

2. Never put too much trust in friends. Learn how to use enemies. (The only one you can trust as a trader is yourself and your own decisions. When the herd is against your positions, find something that is misunderstood, overlooked, or not fully recognized in the current stock price.)

3. Conceal your intentions. (Limit orders are good for the novice and undisciplined, but the market makers will never let you pick off the bottoms and tops using these.)

4. Always say less than necessary. (Talk is cheap and being concise is a good thing. It’s ok to keep some things you learn and strategies you create all to yourself.)

5. So much depends on reputation – guard it with your life. (Wall Street watches where the smart money is going at all times and herd-like patterns typically follow. Find those with the best reputation and figure out what they’re doing now. It will help unlock some secrets to their success.)

6. Court attention at all cost. (The key is to be ahead of the tape before Wall Street takes notice. Find stocks that few are looking at which offer tremendous growth prospects. They’ll be tomorrow’s winners, not the stocks you hear so much about right now.)

7. Get others to do the work for you, but always take the credit.(It’s ok to use others’ research and opinions, but realize that none of these can serve as a substitution for common sense and developing your own edge in the market. What is already known and published by others has already been acted upon no matter what you may think or have been told. Assume you’re always the last to know.)

8. Make other people come to you – use bait if necessary.(Success breeds popularity. If others think that they can learn or profit from you, you’ll never be lonely. However, with respect also comes responsibility to act in the best interests of others, many times before your own.)

RBI CHIEF CALLS ECONOMIC VIEW 'DISTURBING'

India’s deficits and short-term debt levels are “disturbing,” but it is not facing a repeat of a 1991 balance of payments crisis, Reserve Bank of India chief Duvvuri Subbarao said on Saturday.

Dependent on imported oil which it then subsidises, India is exposed to external shocks such as high crude prices and has seen its fiscal and current deficits blow out in recent months, triggering some economists to warn of a looming crisis.

In 1991, India came close to defaulting on foreign debt payments when the first Gulf War drove oil prices up, leading to a depletion of foreign reserves and a currency crash.

Subbarao said the economy was far more resilient now and that the probability of an “implosion” was low.

India’s current account deficit for last year is estimated to be higher than in 1991, and short term debt makes up twice as much of total debt as it did in 1991, the RBI governor said.

“That is quite a disturbing picture,” he said. “Nevertheless, I would still argue that in 1991 an implosion was imminent, in 2012, an implosion in not imminent.”

“There are serious concerns about the macroeconomy, about our policy environment, and about our governance,” Subbarao said at a panel discussion attended by Prime Minister Manmohan Singh.

“We should prove to the world that the current downturn is just a short-term phenomenon and that the long-term growth drivers will come back into play,” Subbarao said.

Singh remained mostly quiet during the discussion, in which influential economist Raghuram G Rajan called on the government to quickly reduce subsidies on domestic fuel to restore confidence in the economy.

Singh’s weak coalition government has vowed to cut the subsidy bill to bring the fiscal deficit down from 5.9 percent last year, but needs to win support from populist allies and opposition parties already fuming at high inflation.

The prime minister accepted there were economic difficulties, but said they could be resolved with determination.

THREE BIASES THAT AFFECT YOUR TRADING

Van K. Tharp mentioned there are 3 biases that will affect one’s trading:

1) Gambler’s fallacy bias

People tend to believe that after a string of losses, a win is going to come next. Take for example that you are playing a game of coin tossing with a capital of $1000. You lost 3 bets in a row on heads and cost you $100 each bet. What will you bet next and how much would you stake?

It is likely you will continue to bet on heads and with a higher stake, say $300. You do not ‘believe’ that it can be tails consistently. People fail to realize coin tossing is random and past results do not affect future outcomes.

Traders must treat each trade independently and not be affected by past results. It is important that your trading system tells you how much to stake your capital which is also known as position sizing, so that the risk-reward ratio will be optimal.

2) Limit profits and enlarge losses bias

People tend to limit their profits and give more room to losses. Nobody likes the feeling of losing. Most investors tend to hold on to losses and hope their investments will turn around soon, and they will be happy if their holdings break even. However, chances are that they will amount to greater losses. On the other hand, if they are winning, most investors tend to take profits early as they fear their profits will be wiped out soon. Thereafter, they regretted that they didn’t hold a little longer (sounds familiar?).

One of the most important principle in trading is contrary to what most investors do – Traders have to LIMIT LOSSES and let PROFITS RUN. Losses are part and parcel of trading and hence, it is crucial to protect the capital from depleting too much – live to fight another day is the mantra for all traders. Large profits are thus required to cover the small losses – so do not limit profit runs.

3) I am right bias

Humans are egoistic in nature and we want to prove that we are right. High accuracy is not important in trading but making more money when you are right is. Remember what George Soros said, “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”

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