First Learn - Then Earn (Indian Stock Market)
First Learn - Then Earn (Indian Stock Market)
First Learn - Then Earn (Indian Stock Market)
Define your entry and exit price before initiating the trade
- Always maintain a journal with complete trade details and the
rationale behind the trade as well.
Get rich slowly - In the quest for making massive profits will
come the biggest losses. Build your confidence gradually by
having lots of winning trades.
There is no holy grail ! - Stop searching for the holy grail and
start making a trading plan that is the holy grail.
You will not see any calls given on this site because every individual
should have their own trading plan based on their risk appetite and
emotional stability.
1. Forget the news, remember the chart. Youre not smart enough to
know how news will affect price. The chart already knows the news is
coming.
2. Buy the first pullback from a new high. Sell the first pullback from a
new low. Theres always a crowd that missed the first boat.
3. Buy at support, sell at resistance. Everyone sees the same thing and
theyre all just waiting to jump in the pool.
4. Short rallies not selloffs. When markets drop, shorts finally turn a
profit and get ready to cover.
5. Dont buy up into a major moving average or sell down into one. See
#3.
6. Dont chase momentum if you cant find the exit. Assume the market
will reverse the minute you get in. If its a long way to the door, youre in
big trouble.
7. Exhaustion gaps get filled. Breakaway and continuation gaps dont.
The old traders wisdom is a lie. Trade in the direction of gap support
whenever you can.
8. Trends test the point of last support/resistance. Enter here even if it
hurts.
9. Trade with the TICK not against it. Dont be a hero. Go with the
money flow.
10. If you have to look, it isnt there. Forget your college degree and
trust your instincts.
11. Sell the second high, buy the second low. After sharp pullbacks, the
first test of any high or low always runs into resistance. Look for the
break on the third or fourth try.
12. The trend is your friend in the last hour. As volume cranks up at
3:00pm dont expect anyone to change the channel.
13. Avoid the open. They see YOU coming sucker
Mostly intraday whenver you buy a stock, if you wish to buy 1000
shares just buy 300, mostly it would be down once any buying
happens, then buy few more again unless the stock is in rally;
Even best Intraday calls may not work sometimes when the sensex
starts falling,
Golden Rule:
Sellers are usually winners in day Trading
17. The most difficult task in speculation is not prediction but selfcontrol. 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. Dont 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 to know yourself and your
stress point.
25. The difference between winners and losers isnt 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! Dont 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. Its much easier to put on a trade than to take it off.
34. If a market doesnt do what you think it should do, get out.
35. Beware of large positions that can control your emotions.
Dont 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 judgment 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 which 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.
Trading Plan
Top.
Try to trade between the Bottom and Top.
Buy a stock
Always buy a stock that is going Up. Buying level is
just above the previous closing price.
Short the stock
Always sell the stock that is going down. Selling level
is just below the previous closing price.
Don't average Your Position
One common mistake by Traders is averaging Loss
making position. You must exit if the trade goes
against you.
Take control of your greed
Book Profit and leave the trading hall and enjoy the
day.
Take control of your fear
Cut your loss - Relax Forget your loss quickly. Wait
for next Opportunity. You can Win.
Keep records of your trading results.
Always record details of your trades and mistakes.
Accept failure as a step towards victory.
Position.
Cut Losses Early, Protect Profits with Trailing Stops.
Return to a Trend if Your Previous Assumptions Turn
Out to Be Wrong and the Trend is Progressing.
Focus on Big Market Moves. Don't Try to Catch Small,
Noisy Fluctuations.
Focus on Price Patterns and Formations Rather than the
Price Levels or Support-Resistance Levels.
Make Your Own Trading Plan.
Your Trading Method Should Be in Sync with Your
Personality.
Maintain Discipline to Be Able to Strictly Follow Your
Plan and Manage Risks.
It Is Only You Who Is Responsible for Your Trading
Results. Don't Try to Blame the Market, Your Friends
and Brokers, and so on.
Its not by making large profits that money is made over time.
Its by consistently keeping losses small in relation to profits.
2)
3) No one knows FOR SURE how much profit any trade is likely to
make. Fortunately, it is possible to know THE INITIAL RISK
a trader is willing to lose.
4) Projection of future prices are only a BEST GUESS, never a 100%
certainty.
5) Top traders only control three things all the time: Initial Risk,
Exits, and EMOTIONS
LOT and wait for the targets without using Stop Loss.
Option Trading is involved Risk.. This condition is
applicable even for the positional calls.
Hint: there is a main saying is there for OPTIONS, that
is ONCE u entered into any options, you should forget
and leave it for expiry, thinking that I have lost the
MONEY and either dont use the SL nor Dont sell , until
and unless you book profits.
Nifty Options :- Buy only Two Lots and wait for the
targets without using Stop Loss.
If u use this formula , you will never END UP with LOSS
for any Reasons.