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Trading Plan

SURVIVA : Need of the Hour !Hey Guys, Happy Weekend & this weekend is pretty long one too. Enjoy the weekend to core & try more charting which makes you better at trading. So What should be your basic expectation from Trading ?! To be Billionaire overnight ? yeah guys, millionaire not in our list anymore, too much of crowd in that zone (or) To make every trade right ? (or) To become professional trader ? (or) To make decent money everymonth ? Not yet, don't choose your options too soon because the right perception/choice : SURVIVA... Not just beginners even for those who are in trading for sometime, your main aim should be : To Survive in Trading field. Why Surviva became most important factor here ? Take a moment away from your charts, come fly with an Eagle's perception over trading world what do you see there ? Institutions, Hedge Funds, proprietary trading firms with money overflowing in their coffers,Big Sharks with deep pockets, Banks & Broking firms with best brains in the world. Not over yet, sharpen your sight, the best brains in the world compunded with advanced codes, HFT strategies which executes trade in fractional seconds, perfect analytical reports on their desk & highly productive team on demand anyday,anytime. That's an exponential combo you can't even imagine of... What does a beginner/rookie have ? An intel inside PC or Apple maybe, with non-buffering hi-speed internet for you-tubing. No, Don't land on the ground, Be the eagle...Weigh their probability of success if they face (Firms vs Rookie) against each other, watch the battle between former & later, do you think some common'er with no survival instincts or tactics, can survive this battle & come out unscathed ?? The odds are same as someone jumping out of plane without parachute & surviving. So, You or Me or Someone else can't survive here ? Only if there is Survival Instinct within you. It's broader topic : You should have a Plan, You should have discipline, You should be ruthless against your emotions - kill them, You should have the capital & Most of all you should stop your bleeding in battlefield which is losing capital gradually over time. Stop Trading till you find that way for consistent wins. A simple question friends, will you play a game if odds are stacked against you ? Will you go in for some battle knowing that you don't have plan ? Finally, will you wage a losing war ??? None will do that DOT Have a Plan n Discipline.Our aim is not to take hedge funds or bigsharks head on, we are not interested to take sides with them also. Then,what else ? We will just wait for the right opportunity to evolve in the Market & We seize them with utmost discipline. That's how SURVIVA works... We will have our part of losing trades, but we will eventually get more consistent winners than losers overtime. Don't just aim at generating profits in the Markets, SURVIVA is the mantra to sustain here... Open Discussion's most welcomed...
NSE:NIFTYEducation
by InsiderB
38
Idea: Important Lessons to be learntGreetings of the day...!!! Sharing one case where we almost paid the penalty of not listening to chart... Some days earlier we recommended a short in idea around 78 for targets of 76 and 74 Things were going good and our 1st target was achieved within hours.... Booking partial profits when target 1 was achieved was good but there after... There were some elementary mistakes that we should have taken care of and should have avoided... Here were some mistakes that we made... sharing so that one can learn and avoid those mistakes and make himself/herself a better trader .... 1. Should have trailed SL to 78.30 instead of keeping it at 79.60 Looking at the charts will suggest the importance of 78.30 The stock came out of the falling channel.... The message was clear....Chart was telling us loud and clear.... EXIT EXIT EXIT There was a clear indication and ample time to exit from short position at cost itself for balance position... but we did not obey what charts were telling us... Even at 79.60 we should have exited but were adamant and expecting the stock to fall because of bias of our postion may be & We almost paid the penalty as the stock went up to 83 thereafter but luckily for us, again charts were at rescue and suggested not to panic but add short position again and we did so around 82.25 And today we were able to book profit at 79.70 and 78.80 respectively (our avg cost of open position was 80.125) Lesson to be learnt If we are looking at charts for our trade we should Listen to charts completely... and not let our will / expectation / ego to come in between, beacuse our expectation always has a desire attached to it and we become bias which is not good .... ------------------------------------------------------------------------------------------------------------------------------------------------------------------ So yes, Although the trade has given good profits overall ...we r not happy with the way we earned but I sign off thanking and respecting charts for helping and bailing us out this time... Regards & Take care...!!!
NSE:IDEAEducation
by indiamarketoutlook
2
Trader's Queries - Trading Psychology Part 7Whatever trading teaches it improves our life too. When a person is a good trader he becomes a better and good person too in his personal life. Always share market gives lesson for trading as well as for life. Today we are going to read about my favourite role model/hero, "Shivaji The Great". And how is he related to trading? Keep on reading and you will know. During 1600 AD Moghul kings and Hindu kings were fighting to take down each other.When Shivaji was young he took a vow to free his country from Moghul kings. Shivaji started to establish an independent kingdom by conquering the near by forts. Seeing the growth of Shivaji, Sultan of Bijapur sent his general Afzalkhan. Afzalkhan was a cunning man and he planned to kill Shivaji when he meet him for peaceful meeting. Shivaji did not believe Afzalkhan, but agreed to meet him. Shivaji wore a steel dress and a helmet under his silk dress, hid a dagger and steel claws under his dress. When they meet Afzalkhan pretended to embrace Shivaji, he started to tighten his grip crushing Shivaji. Afzalkhan was strong, tall and big. Shivaji was short and quick. Shivaji quickly pulled out his steel claws, dagger and killed Afzalkhan. Trading Lesson : Lot of time traders hesitate to enter trade when their stoploss got hit frequently. They start to watch market instead of trading. Prepare trading plan, face the price action with a plan. When price action turns against you, atleast you have a plan when to get out. Dont run away from trading. Be quick in executing your trading plan. Market wont wait for anybody. Lesson for life : Whatever your problem is, you are bigger and stronger than it. Dont run away from your problems. Face it. Always have a plan when situation turn against you. Plan and execute it fast. Be quick and stay strong.
NSE:NIFTYEducation
by vanathi
4
Trader's Queries - Trading Psychology Part - 3Doing paper trade before and after you become a trader is completely different. Before you become a trader, you dont know about fear, greed and maximum draw down for your trading strategy( Draw down is the loss of your capital after a series of losing trades). You have a trade set up and you test it by paper trading. After becoming a trader you know how you feel after profit/loss. You know how powerful fear and greed is. And you know that you have not tested your trading strategy's maximum draw down. Doing paper trade after becoming a trader may be because of not following your trading plan properly. You may think your trading plan is wrong and you want to find some other suitable trading plan. The real thing is your mind dont know how to handle fear or greed. You should feel confident to overcome fear and greed. You have to find you strength and weakness in trading. You are the only one who can find it. Nobody can find it for you. Some people will be good in trade using pivot levels, fibonacci levels or in finding divergence in indicators or pattern finding etc. You cant become master in all. But once when you are clear about your strength you can control your fear and greed. It wont happen in a single day. And the whole process takes time depending on your hard work. PS : I am always fascinated in oberserving human behaviour and mind. And share market reflects human mind set.
NSE:CNXITEducation
by vanathi
15
Always follow your trading plan!"Always follow your trading plan". Every trader have trading plan. When to enter a trade, when to exit, target and stoploss. And also everybody have their own analysis skills. We can discuss with our trading friends about a script. We can discuss whether the price is going up or going down. But when entering a trade it should be based on our analysis, our trading plan. Everyday share market gives us question paper and we are answering it by our trades. Like the answer sheet the way we represent our trade gives us success in long term. Stick to your trading plan. Then only you can measure the success rate of it. And always take responsibility of your trades. What makes us to stick with our trading plan? One who want to improve their trade, always analyse their trading plan's success/failure rate by following it sincerely. Remember its always "My trade, my plan, my responsibility".
CEducation
by vanathi
4