Nifty Futures Moved from 5500 to 6000 and back from 6000from 5870 today. How many points were you able to made out of it. When I interact with my readers on Mail or Phone I feel most of the people loose money for reasons as mentioned 1. They are very rigid in there views —… Read More »
Risk/reward is set in concrete. Nothing in trading, with the exception of the process, is set in stone. I have seen that stone sink many peoples trading careers. Risk/reward is as much of a filtering process as it is risk management. We look at market in terms of volatility, it keeps us out of slow… Read More »
When markets are Volatile Overbought in Short Term May Reverse from the current trend as per technical Most common term used by traders/analyst is Tighten your Stop Loss/Use Trailing Stop Loss Stop loss order is an order to close position if/when losses reaches a particular point. In other words stop loss trade is an order… Read More »
Many traders have asked and discussed with me When i keep a Stop loss order its gets triggered and market reverses just from my stop loss level giving them a feeling of helplessness and most of them decide never to keep a stop loss order. The market often rewards bad behavior. You exit… Read More »
Managing the risk of ruin.Do not risk so much on any one trade that 10 losing trades in a row will destroy your account. risking 1% to 2% of your trading capital per trade is a great baseline for eliminating the risk of ruin.When you do intraday trades or positional trades keep an eagle eye… Read More »
There is a big difference between Losing traders and good and profitable traders, here is what I think separates one from the other: Losing traders continually have the desire to short the hottest stocks with the strongest momentum. What is their reasoning? “It can’t go any higher, this price is ridiculous.” Do they understand it… Read More »
Despair = Losing Money – Trading Better Do not despair look at your losses as part of doing business and as paying tuition fees to the markets. Disappointment = Expectations – Reality Enter trading with realistic expectations. You can realistically expect 20%-35% annual returns on capital with great trading. More than that is… Read More »
1. OPTIMISM – It all starts with a hunch or a positive outlook leading us to buy a stock. 2. EXCITEMENT – Things start moving our way and we get giddy inside. We start to anticipate and hope that a possible success story is in the making . 3. THRILL – The market continues to… Read More »
Once you are in a trade the question quickly rears its head: How and when do you get out of the trade at a profit? Setting targets has to be one of the most important elements of your trading strategy. Targets can be time-based (”I’ll stay in the trade for three weeks”) Technically-based Depending on… Read More »
Losing discipline is not a trading problem; it is the common result of a number of trading-related problems. Here are the most common sources of loss of discipline, culled from my work with traders: Boredom cause a lack of focus:What market we are witnessing in October Series , Choppy market with range bound trading from… Read More »