The vast majority of traders are gamblers, maybe the majority of market participants are in fact gamblers. The traders that are gamblers trade with no plan and without understanding the odds are stacked against them. Whether it is buying far out of the money options with no method for profitability or randomly chasing stocks on… Read More »
During my trading session when I talk to my students reasons for losing trades , I noticed a pattern that seems to pop up pretty often when talking about losing trades. As it turns out, more and more traders are losing their trades and even getting their accounts blown up by trying to short at… Read More »
All those talks about proper money management and follow your trading plans are not secret to day trading success. They are principles to keep you out of trouble only. They are similar to what kindergartens teach the kids so that they would not do stupid things to harm themselves. The real secret to day trading… Read More »
Trading losses can end a career in a matter of a day, an hour, or in extreme circumstances even a few minutes Like What happened today after bank recapitalization most of PSU’s up 20+% in opening. Here I outline some of the ways I have dealt with losses in the past and how I got… Read More »
A lot of books have been written about the two sides of our brain. The Left Side which is the more linear, formula based, procedure oriented brain and The Right Side which understands design, symphony and context. Nobel Laureate Daniel Kahneman calls it System I and System II. System I – is the one which… Read More »
When I started trading back in 2000, like most novice, traders I was actually gambling. I was luck that I found my Trading Guru who helped me in this difficult journey. Traits of a gambler: I did most of this in my early days so speak from experience Failing to follow strict money management… Read More »
By Rahul T We are all numb nuts. Including me. And the best part – We don’t know that we don’t know. It’s called ‘Dogmatism’ – an unshakeable belief that we know something to be true even if we don’t. It’s difficult to accept, I know. So let me take you on a wild goose… Read More »
Happy Dussehra. May Lord Ram’s blessings be showered on you. A day of celebrations of good over evil. We celebrate “Ram’s victory over Ravan”. And it happened thousands of years ago. And we continue to do celebrations and stopped at that. Only a handful have gone on to fight the good fight to overcome the… Read More »
Its been a roller coaster rise from past few trading session and many traders asked me “Can money be made in trading ?” Let me try to answer the same. Some general reason why traders loose money Taking excessive risk in relation to their trading account When you take excessive risk in relation to… Read More »
It was nightmare for most of the traders on Friday. Indeed it was the Black Friday, proved to be unlucky for many more traders. Considering Thursday’s upward journey, traders remained in long trade and found themselves safe from unlucky 22 Friday. Considering strong up move many more had cut their shorts and taken long and… Read More »