This post is for the followers who shared the information about their loss in trading. They motivated me to write this post. Newbie traders blow up their trading account or face heavy loss in the process of learning to trade. So what to do next after a heavy loss? When we have heavy loss our mind becomes unstable and we do irrational things. First we have to stop...
The first thing about stock trading is to form a profitable trading strategy and plan. Then test it through time to see whether it is profitable strategy or not. Forming a profitable trading strategy requires all the integrated knowledge learned throughout the learning process of trading.
Trading is a job where we need to take decisions by our own during trading time. A newbie trader expects himself to be a profitable trader in a short duration. Like all profession, trading needs experience to succeed in it. Once a newbie understand this, he wont have great expectations about himself and it will reduce the stress which is created with the...
Query : I am trying to be a perfect trader, but my efforts are making me more depressed. How to handle it?
No trader can get profit in all trades. How you handle loss is important for your growth. Whenever I get loss I check whether I followed rules with discipline, then I learnt a new trading concept when I was a newbie trader. So at the end of the day, even...
Becoming a better day trader requires that you not only focus on textbook knowledge but also yourself. This is why it is so important to put some focus on trading psychology.
1. Know Your Strengths – Knowing your strengths is a crucial part of trading. It’s important to focus on what you are good at so that you may focus your attention in that area.
A trading plan is your roadmap for what you are going to do in the markets. It's something that you have to create and is not optional.
1. How Many Trades will You Use to Evaluate Your Performance?
- The answer to this question is very simple. Base your evaluation period on the number of trades placed and not by the amount of time passed. Time is irrelevant in...
Its said, "Knowing risk tolerance level is the key to success in trading". Let me explain this with an example. Refer the above chart. Two traders A and B saw double top formation and decided to go short. Trader A used leverage above his risk tolerance level. Trader B took trade as per his money management.
Both traders went short. After few minutes price start...
RULES FOR ENTERING TRADE
1. No clarity, no trade.
2. Size the open.
3. Watch fair value.
4. Cover or liquidate trades in the pre- and Post-market; don’t open them.
5. Never use market orders.
6. Always use limit orders
7. Never chase stocks
8. Always look for confirmation among trading signals
9. Always know who the buyers and sellers are.
10. Survive before you...
First of all, the secret or trick (whatever you want to call it) that I am going to reveal here are very rare and are not available in any book or youtube stuff. I learned trading through experience, mind my words "trading" not "technical analysis". I learned TA from books but trading -- I learnt through practice, and by practice I mean losing money :) I think no...
Weekly and Daily chart comparison for Bank Nifty
Bank Nifty is at significant resistance levels. National and global uncertainty mentioned in the chart could lead to consolidation or unexpected price action.
Fairly high risk when trading this week. Be careful.