First Learn - Then Earn (Indian Stock Market)

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FIRST LEARN - THEN EARN

( Indian Stock Market)

What you will get here?

Learn How to invest in Indian Stock Market, learn


online daytrading in stock market, learn niftyfutures and option strategies, know how to invest
or trade in BSE-NSE scripts, & trading tips-ideas,
much more.

Secrets of successful Intraday Trading


Intraday trading means buying and selling in the same day. It
may be either buying first or short selling. Normally intraday
traders book profit in small margins. People are making profit
by repeated trades or by trading large quantities. One thing to
be mentioned here is intraday trading is high risk involved.
How to make profit from Intraday trade.
The Golden rule of intraday trade is ride with the trend. Hence
the first step to make profit in intraday trade is to identify the
stock. Intraday charts are the best way to identify stocks for
trading intraday. Also one should make a good home work
before entering in intraday trade. Home work means, study
the historical charts and find out the upward or downward
moving stocks. Then see the previous days intraday chart.
Find out the support and resistance levels. The better strategy
will be buy at previous days support level and short at
previous days resistance levels. Also shorting below support
level and buying above resistance level are good ideas.
Keeping Stop loss
Keeping stop loss is very important for intraday trade.
Otherwise one will loose heavily. Where to keep stop loss is a
very important question. Again previous days intraday charts
will help. If one shorted in a stock, keep stop loss at previous
days high or days high. Also if bought, keep stop loss at

previous days lows, or days lows. Another thing to remember


is keep trailing stop loss and revise stop loss when one is in
profit. Instead of booking profit, one can keep stop loss for
profit and can revise according to upward movement.
Normally this will help a lot in intraday trade.
Panic and Greedy
The two things to avoid in stock market and particularly in
intraday trade is panic and greedy. When one enters in a
trade and goes in opposite direction, dont be panic. Wait
some time, keep strict stop loss. If stop loss triggers, dont
enter again. Wait some time and relax, watch the market
trend and enter in some other stocks. Another thing to avoid
is greediness. Some people will not book profit and wait for
more and more profit. But such people will end up in loss
only. In intraday trade book profit in every highs. Wait for a
dip and enter again if trend sustains.
Timing is important for successful Intraday trade
The best time to enter for intraday trade is after 20 to 30
minutes when the market opens. Some people will jump in the
market at the opening bell itself. It is risky always. Watch the
market in the early trades and find out the trend. First enter
in some small quantity, say 25% of the quantity one is
intended to buy. Then buy more in the next 10 to 15 minutes.
The trend observed is intraday trading is stocks will shoot up
till after 45 to 1 hour when the market opens. This is the best
time to book profit. Once booked profit in a particular stock,
better wait some time and watch the next movement and
enter accordingly.

The Trading Rules


Just remember, without discipline, a clear strategy, and a
concise plan, the speculator will fall into all the emotional
pitfalls of the market and Jump from one stock to another,
hold a losing position too long, cut out of a winner too soon
and for no reason other than fear of losing the profit - Jesse
Livermore

"Know what you want to accomplish, how you intend to get


there, and what you will do if it does or does not work out
Have a plan and stick with it That works in trading, as well as
in life." - Mark B Fisher

The Trading Rules :-

Choose your preferred technique - Either focus on Elliott


Wave or trend lines or oscillators or moving averages Using too
many of them generally creates a hell lot of conflicting signals in
your trading plan.

Define your time frame - Are you going to choose the


weekly/daily/hourly or 5 min time frame ? Make up your mind
based on your trading style and do not switch to make a quick
killing The only quick killing the markets will give you is probably
yourself.

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.

Keep your stop losses in place - Cut your losses quickly


because if you cant take a small loss you will soon take the
mother of all losses.

Always have trailing stop losses to Protect your profits


- Without profits your trading account is not sustainable.

Do not be worry about whipsaws - If it happens take it along


your stride but don't change your stop losses wondering if the
trade will turn out into a whipsaw.

Use only 50 % of the money in your account at any point of


time - You do not want one bad move in the market to wipe you
out all your capital.

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.

Keep it simple and sweet - An easy methodology to follow is


sustainable in the long run since there are lesser rules.

Win more and lose less - Self confidence is the key to a


successful trading/investing experience- Its important to have lots
of good hits while trading to have conviction in yourself and your
trading plan.

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.

The Rules of Trading


1. Never, under any circumstance add to a losing position....
ever! Nothing more need be said; to do otherwise will
eventually and absolutely lead to ruin!
2. Trade like a mercenary guerrilla. We must fight on the
winning side and be willing to change sides readily when
one side has gained the upper hand.
3. Capital comes in two varieties: Mental and that which is
in your pocket or account. Of the two types of capital, the
mental is the more important and expensive of the two.
Holding to losing positions costs measurable sums of actual
capital, but it costs immeasurable sums of mental capital.
4. The objective is not to buy low and sell high, but to buy
high and to sell higher. We can never know what price is
"low." Nor can we know what price is "high." Always
remember that sugar once fell from $1.25/lb to 2 cent/lb and
seemed "cheap" many times along the way.
5. In bull markets we can only be long or neutral, and in
bear markets we can only be short or neutral. That may
seem self-evident; it is not, and it is a lesson learned too
late by far too many.
6. "Markets can remain illogical longer than you or I can
remain solvent," Illogic often reigns and markets are
enormously inefficient despite what the academics believe.
7. Sell markets that show the greatest weakness, and buy
those that show the greatest strength. Metaphorically, when
bearish, throw your rocks into the wettest paper sack, for
they break most readily. In bull markets, we need to ride
upon the strongest winds... they shall carry us higher than
shall lesser ones.
8. Try to trade the first day of a gap, for gaps usually
indicate violent new action. We have come to respect

"gaps" in our nearly thirty years of watching markets; when


they happen (especially in stocks) they are usually very
important.
9. Trading runs in cycles: some good; most bad. Trade
large and aggressively when trading well; trade small and
modestly when trading poorly. In "good times," even errors
are profitable; in "bad times" even the most well researched
trades go awry. This is the nature of trading; accept it.
10. To trade successfully, think like a fundamentalist; trade
like a technician. It is imperative that we understand the
fundamentals driving a trade, but also that we understand
the market's technicals. When we do, then, and only then,
can we or should we, trade.
11. Respect "outside reversals" after extended bull or bear
runs. Reversal days on the charts signal the final
exhaustion of the bullish or bearish forces that drove the
market previously. Respect them, and respect even more
"weekly" and "monthly," reversals.
12. Keep your technical systems simple. Complicated
systems breed confusion; simplicity breeds elegance.
13. Respect and embrace the very normal 50-62%
retracements that take prices back to major trends. If a
trade is missed, wait patiently for the market to retrace. Far
more often than not, retracements happen... just as we are
about to give up hope that they shall not.
14. An understanding of mass psychology is often more
important than an understanding of economics. Markets are
driven by human beings making human errors and also
making super-human insights.
15. Establish initial positions on strength in bull markets and
on weakness in bear markets. The first "addition" should
also be added on strength as the market shows the trend to
be working. Henceforth, subsequent additions are to be
added on retracements.
16. Bear markets are more violent than are bull markets
and so also are their retracements.

17. Be patient with winning trades; be enormously impatient


with losing trades. Remember it is quite possible to make
large sums trading/investing if we are "right" only 30% of
the time, as long as our losses are small and our profits are
large.
18. The market is the sum total of the wisdom ... and the
ignorance...of all of those who deal in it; and we dare not
argue with the market's wisdom. If we learn nothing more
than this we've learned much indeed.
19. Do more of that which is working and less of that which
is not: If a market is strong, buy more; if a market is weak,
sell more. New highs are to be bought; new lows sold.
20. The hard trade is the right trade: If it is easy to sell,
don't; and if it is easy to buy, don't. Do the trade that is hard
to do and that which the crowd finds objectionable..
22. All rules are meant to be broken: The trick is knowing
when... and how infrequently this rule may be invoked!

Do & Donts for Stock Market Investments


Donts
1. Don't panic
The market is volatile. Accept that. It will keep fluctuating.
Don't panic. If the prices of your shares have fall, there is no
reason to want to sell them in a hurry. Stay invested if nothing
fundamental about your company has changed.
2. Don't make huge investments
When the market dips, go ahead and buy some stocks. But
don't invest huge amounts. Pick up the shares in stages. Keep
some money aside and zero in on a few companies you
believe in. Most importantly keep buying the shares
periodically.
3. Don't chase performance
A stock does not become a good buy simply because its price
has been rising phenomenally. Once investors start selling, the
price will drop drastically.
4. Don't ignore expenses
When you buy and sell shares, you will have to pay a
brokerage fee and a Securities Transaction Tax. This could nip
into your profits especially if you are selling for small gains
(where the price of stock has risen by a few rupees).
Dos
1. Get rid of the junk
If shares you have bought before are showing a profit, you
could consider selling them. Even if they are not going to give

you a substantial profit, it is time to dump them and utilize


the money in other if you no longer believe in them.
2. Diversify
Make sure you are invested in stocks of various sectors. Do
not invest all your fund in same sector.
3. Believe in your investment
Don't invest in shares based on a tip, no matter who gives it
to you. Analyze the fundamental of company, future potential
of products and services and then make decision whether to
invest or not.
4. Stick to your strategy
Stick to your stock allocation. Do not over exceed or limit your
shares portfolio.
It seemingly looks to be the simplest and the most
rewarding. But in intraday trading one has to be very
fast and quick and have to be on your toes always, so
there are certain rules which one has to keep in
mind.
If index is in positive from yesterday and stock u are holding is in minus
then it should be cut and if intraday trend of index is in buy then one should
buy share in which is in plus.
It isn't necessary that share which is weak today during
intraday trading might be weak tomorrow also, simultaneously
if share is strong today might not be strong tomorrow

If US Markets have gone up overnight, markets here in all


probability will open strong, so one should be quite careful
when buying shares as general psychology of public is to buy
when good news is there.
Being contrarians is very Imp. while trading intraday.
Stop loss is must while trading intraday.
Always trade in very liquid shares i.e. which have very high
volume because as entry and exit can be very fast in such
shares.
Do paper trading before u actually start trading so that
when u start making paper profits, then shift to actual trading.
Keep your volume constant e.g.: if u trade in five lots of
nifty future then trade in five lots only. This position can be
increased only when u are satisfied with your trading for
month. It shouldn't be that one day u buy five lots and next
day u trade in ten lots & third day u get loss and stop trading
for two days.
Fear and Greed are at maximum levels while trading
intraday so always have less position when u are new to
intraday trading as otherwise u will be mostly under tension.

20 GOLDEN RULES FOR TRADERS

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

14. 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two


lower highs and a double bottom.
15. Bulls live above the 200 day, bears live below. Sellers eat up rallies
below this key moving average line and buyers to come to the rescue
above it.
16. Price has memory. What did price do the last time it hit a certain
level? Chances are it will do it again.
17. Big volume kills moves. Climax blow-offs take both buyers and
sellers out of the market and lead to sideways action.
18. Trends never turn on a dime. Reversals build slowly. The first sharp
dip always finds buyers and the first sharp rise always finds sellers.
19. Bottoms take longer to form than tops. Fear acts more quickly than
greed and causes stocks to drop from their own weight.
20. Beat the crowd in and out the door. You have to take their money
before they take yours, period.

Rules to Trade Intraday:


Best intraday movers are stocks which are bought or sold by FIIs,
HNIs, Promoters, MF or stocks which have witnessed break out on
charts.
Sell your own holding intraday on rise n buy back at 3.25, just check
there is no spurt in volume intraday.
Strictly trade with sensex movements, sensex starts falling more then
25 points from high, then exit your positions ;
When market opens gap up & your stock is going down, do not buy,
wait for it to show strength;
Buy the stocks for delivery only after 3.25 PM, Intraday traders are
desparate sellers.

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

50 Golden Rules of Stock Market Trading


Im sure most everybody knows these truisms in their hearts, but
this list is nicely edited and makes a good read.
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. Dont 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 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.

44. It is better to be more interested in the markets reaction to


new information than in the piece of news itself.
45. If you dont 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. Dont torment yourself if a trade continues
winning without you. Chances are it wont 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, dont pray jump!
49. Lose your opinion not your money.
50. Assimilate into your very bones a set of trading rules that
works for you.

Trading Plan

What is a Stock Trading Plan?

A stock trading plan is a strict set of


rules and actions which formulate your stock trading strategy.
A stock trading plan defines when to buy and sell stocks and
at what prices. Every trade you make should be governed by
your trading plan.
A stock trading plan is very similar to a company Business
Plan. A Business Plan is a device for the owner which sets out
how the company intends to operate the business. A business
plan is also a road map to tell investors and others how you
expect to get there. A business plan covers all aspects of the
company, from overall strategy and marketing to finances and
the companys goals. In the same fashion, a trading plan lays
out how the trader will make trades the time, price, volume,
and news are all essential components of the trade. While
your trading plan may not necessarily be for others, it is still
your own road map to tell yourself, and reaffirm to yourself,
how you expect to get there. Include goals in your business
plan: 3 month, 6 month, 1 year, 2 year, 5 year, 10 year, and
even 20+ year goals you would like to reach through your
trades and investments.
Trading Criteria to Consider
There are many things you need to consider and think about
when creating your trading plan. Here are a short few your
trading plan should cover. Any additional criteria you can think
of should be included.

When to enter a trade (buy a stock) timing.


Price when buying a stock.
Current news about the stock.
Liquidity of the stock. Liquidity is the ability to buy and
sell stocks at the volume you want, when you want, at
the price you would like.
How long to hold the stock.
When to sell if the stock price goes up.
When to sell if the stock price goes down.
What to do if the price does not move. Hold the stock
longer? Sell the stock?
Your Trading Plan Means Success
A well thought out and detailed Stock Trading Plan is the solid
foundation for building your wealth, keeping your wealth, and
successfully growing it. You must be dedicated to your plan.
Following your plan part-time will give you part-time success.
Dont second guess your plan, but make changes as
necessary. A trading plan is one key that can unlock your
trading potential and help you make more money while losing
less money. Every Trading Winner must have a Stock Trading
Plan.

Trying t win n th stock market without trading plan s like trying t


build house without blueprints - costly mistakes r inevitable.
Why d y need Trading Plan?
1 - During trading hours, emotions will turn smart people into idiots.

Therefore, y hv t avoid having t make decisions during those


hours. For every action y take during trading hours, th reason
should not b greed r fear. The reason should b because t s n th
plan. With good plan, yr task becomes n f patience & discipline.
2 - Consistent results require consistent actions - consistent actions
cn only b achieved through detailed plan.
What should b n yr trading plan?
1 - Your strategy t enter & exit trades
You hv t describe th conditions tht hv t b met before y
enter a trade. You also hv t describe th conditions under whch y
will close position. These conditions may include technical analysis,
fundamental analysis, r combination f both. They may also include
market conditions, public sentiment, etc...
2 - Your Money management rules t keep losses small - th goal f
money management s t ensure yr survival y avoiding risks tht
could take you t f business. Your money management rules should
include th following:
- Maximum amount t risk fr ch trade.
- Maximum amount t risk fr ll yr opened positions.
- Maximum daily & weekly amount lost before y stop trading
3 - Your daily routine - after th market closes, before t opens, etc...
4 - Activities y carry t during th weekend.
5 - also like t include reminders tht read every day
I will follow trading plan t guide my trading - therefore my job will be
n f patience & discipline.
- I will always keep my trading plan simple.
- will take actions according t my trading plan, not because f greed,
fear, r hope.
- won't deceive myself whn deviate frm my trading plan. Instead I

will admit th error & correct it.


I will hv winning attitude.
- Take responsibility fr ll yr actions dont blame th market r
world events.
- Trade t trade well & fr love f trading, not t trade often and not fr
money.
- Dont b influenced y opinions f others.
- Never think tht taking money frm th market s easy.
- Dont try t guess th future trading s game f probabilities.
- Use yr head & stay calm dont gt excited r depressed.
- Handle trading s serious intellectual pursuit.
- Dont count hw much money y hv made r lost while y r n
trade - focus n trading well.
A trading plan won't guarantee y success n th stock market bt not
having n will pretty much guarantee failure.

ips and Tricks for Day Traders

Day traders Buy or Sell Stocks several times every


day and close out all positions before the market
closes.
The expectation of Traders is making small profits
with as little risk as possible and they simply look for
potential price movement Based on Technical
Analysis.
Plan your trade. Trade as per your plan.
Select your Stock, Decide the Quantity, Decide the
entry and exit price and Decide the amount of money
you can loose if the trade goes against you.
Trading in Opening and Closing hours of the market is
Risky but Rewarding.
Use a Stop Loss
Always trade with Stop Loss. Set Stop Loss Sell Order
just below the low of the day or Support level and
Stop Loss Buy Order just above the high of the day or
Resistance level.
Never Trade too many stocks at once
Always trade in High Volume Index based Shares.
Select Three or five stocks for Trading.
Get the price movement between the bottom and top
It is not possible to Buy at the Bottom and Sell at the

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.

Golden Trading Rules Any Trader Should Bear in Mind

I do want all our Friends to be successful, just like and


I do our utmost to help them!
However, the truth is that our software (just like any
other software) will not help you always make a profit
if you don't follow the rules below.
The rules should become a natural part of your
everyday approach to trading. In any case, think twice
before making any exceptions.
------------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.
Immediately Close Your Position When the Initial
Conditions Are Disrupted.
Make a Decision About the Stop Level Before Entering a

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.

I Will :1. I will create game plans for all my trades.


2. I will only trade when I have an edge.
3. If I have 3 losing trades in a row, I will take a break, walk
away, and
clear my head.

4. I will never trade for revenge.


5. Any time Im hoping, wishing, or praying, I will exit the
trade
immediately.
6. I will never give back more than half my profit on any trade.
7. I will keep a daily trading journal and email it to someone
who will
hold me accountable.
8. I will think in terms of probabilities and risk/reward.
9. I will remain objective in my trades by asking, If I had no
trade on,
what would I do?
10. I will never put more than 30% of my capital at risk in any
single
position.
11. I will not make trades just because Im afraid to miss
out.
12. I will quickly recognize my emotions and compartmentalize
them

rather than waste time trying to get rid of them.


13. I will trade to make money, not to be right.
1)

Its not by making large profits that money is made over time.
Its by consistently keeping losses small in relation to profits.

2)

Making Money and Being Right are at opposite ends of


the performance spectrum,
and very surprisingly to most most professional traders
admit their primary job is to minimize losses, NOT focus on being
right. Why? Minizing losses (well over 50% of the time losses cant
be avoided) ensures their average winner will be greater in
relation to the average loser.

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

How To Maximise Your Profits


Trade in only 1-2 calls.
Hint: Trade in only one or two calls from the time of
your ENTRY.
Trade with Money management. Hint: Say if u have
Rs.100000/- use Rs.30000/- for cash, Rs.50000/- for
Futures and Rs.10000/- only for Options. Rest you can
keep it as Reserve for any Mistakes.

Make your Investments into 4 parts, use only 1st Part


to use our first call, and then use the second to use our
second call. The rest u can keep it for the other
segments.
Dont trade in all the calls at a Time. Hint: Dont take
over/more positions.
Use your OWN SL, if you are already addicted to keep
SL for all trades.
Dont Panic and Dont be Panicked.
Trade in your opted segment only, if u have taken a
specified segments to trade, say if u have registered
with us for NIFTY, trade in NIFTY only. Dont try to
change your Option.
Trade One by ONE, means Trade in second call only
after Booking the profits in First call. If u find the next
calls are good, square of the old one with small profits
and trade in the next call.
You can trade without the Money MANAGEMENT( only if
u have sufficient money), u can trade 3-4 calls in a day.
Dont trade in MARGIN to maximise your profits
instantly, because you may lose instantly also.
LAST but not the LEAST and also the BEST policy
Cash Trader:- buy 1000 shares if the price below 100/-,
Buy 500 shares if the price below Rs.500/- or buy200
qty if the price is above Rs.500/-. Keep a margin of
profits of 1.20%, 2.30% and 5% respectively.
If u are Futures trader :- Buy Only One LOT keeping a
profit margin of Rs.3000 to Rs.5000/- per LOT.
If u are Option Trader :- Stock Options: Buy Only One

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.

Good luck with your trading!

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