Trade Psychology Rules to Follow

By | March 8, 2016 3:33 pm

Sharing Few One Liners complied during course of time, I Keep near my trading desk, to keep myself on Track.

 

  • Let winners run. While momentum is in phase, the market can run much further than might be expected. Do not exit winners without reason!
  • Be quick to admit when wrong and get out of position immediately.
  • Sometimes a time stop especially when trading in Options is the right solution. If a position is entered, but the anticipated scenario does not develop, then get out.
  • Remember: if one thing isn’t happening the other thing probably is.
  • Flat/Being Out of Market  is also a position.
  • Be careful of correlations. Several positions can often equal one large position bearing unacceptable risk.
  • The crowd is not always wrong.
  • Most trading problems come from an incorrect perception of risk. If you’re trading with an edge, the “risk” of any trade being a loser is not actually a risk at all.
  • Intuition is real, but all traders develop it. Intuition, alone, is not an edge.
  • Intuition must be trained properly. It is very easy to develop incorrect intuition due to cognitive biases and the nature of the market.
  • Mental capital is just as important as financial capital. Protect both.
Category: Trading Psychology

About Bramesh

Bramesh Bhandari has been actively trading the Indian Stock Markets since over 15+ Years. His primary strategies are his interpretations and applications of Gann And Astro Methodologies developed over the past decade.

9 thoughts on “Trade Psychology Rules to Follow

  1. Achu Mon

    Sir,
    While recovering the market the 225 degree is chopard level worked as a closed door for nifty. According to your post 7585.35 is 225 and now nifty is in 180 degree squire,Am I correct ?.Illiterate to digest other complicated pattern. Thanks. .

    Reply
    1. RAJMOHAN

      U R RIGHT / MOST OF US CAN NOT ANALYSE ALL PATTERNS FOR ALL THE TIME / i FOUND WEEKLY CHOPAD LEVELS BY BRAMESHJI IS GIVING BEST RESULTS – 7 OUT OF 10 TIMES / JUST FOLLOW PROVEN MENTORS

      Reply

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