Hi friends
What you read here in this post is not aa pleasant thing-it is bitter facts of the market.
The discussion is about intraday trading
========================================
You can make money in the markets only if you can
find trend days.
you can retain profits only if you really know risk control
you can make profits only if you can enter at a critical low risk zone.
==========================================
Trend days occur roughly once in 22 trading days.
2 trend days in 50 trading days is realistic opinion.
step 1
Detect a trend day
step2
trade with trend on a trend day
step 3
cut risk to minimum if wrong.
step4
you can-you may- fail 21 times in a row.
If you can handle this many failures,then you are fit.
Due to lack of understanding,lack of practice, your wrong judgement or misfired attacks on market,if you cant survive these many failures,then you are declared unfit or disqualified.
step5
go ahead & trade if you are qualified.
if not repeat steps 1,2,3,4.
======================================================
HOW TO DETECT TREND DAYS?
Here are some
1.Breakout upwards or downwards from range or balance area(ORB)
2.After narrow range previous days(NR4 OR NR7 OR NR10 OR NR15)
3.Large opening gap
4.Typical one way up or one way down behaviour of price
5. Volume shows above average behaviour with pivot break
6. consistent high tick readings
7. high advance/decline numbers
KEEP A WATCH FROM THE DAYS OPEN AS YOUR REFERENCE.
Are you ready?
good luck
COMMITTED TRADER REQUIRES FOR HIS SUCCESS CERTAIN FOUNDATIONS.
1 what are your expectations? Are they reasonble? Are they realistic?
80% win rate in trading is not possible.
Less than 50% win ratio is possible. You can be profitable if you can risk very little.
Getting out of loosing trade needs guts and ability
It can happen only after lot of practice.
Unrealistic expectations bring frustrations-frustations make bad trades & FORCE YOU TO VIOLATE ALL GOOD RULES.Bad trades make losses bigger.
Example-trader says I want to take a profit of 5% today. he waits and finally ends up with loss.
but market moved only 2%. so making profits is out of question as market is not ready to give as much you need or expect.
Psychology is important.
DON’T DAMAGE YOUR PSYCHOLOGY.
ABILITY TO MANAGE YOUR EMOTIONS IS MUST TO DEVELOP.
MOST TRADERS MAKE X PROFIT BUT LATER ON, SOON THEY LOOSE (X+ MUCH MORE).
IDENTIFY AND FIX YOUR FLAWS
2.RISK MANAGEMENT
IT SEPARATES GOOD TRADERS FROM BAD TRADERS.
GOOD TRADERS ARE GOOD RISK MANAGERS.
USE STOPS AND MOVE STOPS
GETTING OUT OF A LOOSING TRADE SHOWS THE STRENGTH OF A TRADER.
HOW MUCH AM I NOT GOING TO LOOSE ON THIS TRADE?
DEFINE LOSS LIMIT
CONTROL.
EVERYBODY THINKS HOW MUCH THEY ARE GOING TO MAKE PROFIT ON ANY TRADE.
BUT IT IS WRONG.THEY MUST THINK OF RISK & CONTROL OF RISK FIRST.
YOU MUST HAVE TWO QUALITIES
1 ABIILITY NOT TO PANIC
2 ABILITY TO ADMIT WHEN YOU ARE WRONG.
(ABILITY TO MANAGE RISK AFTER YOU ADMIT YOU ARE WRONG)
A STRONG TRADING PSYCHOLOGY IS NEEDED.
IT TAKES TIME-LOT OF IT.
MANAGE YOUR EGO. KNOW IT MANAGE IT
DEVELOP YOUR OWN RULES
FOLLOW YOUR OWN RULES PERFECTLY
YOUR RULES MUST SUIT YOU AS A TRADER AND AS A PERSON THAT YOU REALLY ARE.
DECIDE WHEN YOU BREAK THOSE RULES.
EXCEPTIONS-YOU MAKE RULES FOR EXCEPTIONS.
WHAT IS THE PUNISHMENT FOR BREAKING THE RULES?
STOP TRADING FOR X TRADING HOURS OR DAYS
TAKE A BREAK FROM TRADING
LET YOUR MIND REST - GO FOR A WALK - REGROUP YOUR THOUGHTS -STAY AWAY FROM THE MARKET.
GO BACK TO BIG PICTURE-LONG TERM SUCCESS.
-------------------------------------------------------------------
TEN RULES
1 A SCRATCH TRADE IS A WINNER. NOTHING LOST. NO LOSS NO PROFIT-YOU LEARN SOMETHING
2. USE LIMIT ORDERS FOR ENTRY USE MKT ORDERS TO GET OUT
3.NEVER ADD TO A LOOSING TRADE. DON’T BUY MORE AFTER PRICE STARTED FALLING.
ALL LOOSERS ARE AVERAGERS.THEY BUY MORE AS PRICE DROPS
4. LOOSING TRADES DAMAGE YOUR PSYCHOLOGY-DESTROY YOUR CONFIDENCE.
5.NEVER LET A PROFITABLE TRADE TURN INTO A LOSS.TAK LESS PROFIT-OK.
6. DON’T BE A ONE WAY TRADER-BE BOTH A BULL AND BEAR
7. DON’T BE INFLUENCED BY OTHERS. DON’T DO WHAT THEY DO.
8.MAKE 1 TICK ON 100 TRADES BUT DON’T TRY TO MAKE 100 TICKS ON ONE TRADE.
9. DON’T HOPE- DON’T WISH- DON’T PRAY.
LEARN FROM YOUR MISTAKES. RECORD YOUR MISTAKES.
THREE LOOSING TRADES IN A ROW? TAKE A BREAK STOP TRADING.
IF YOU ARE HOPING-WISHING-[PRAYING THEN YOU ARE NOT TRADING YOU MAY BE GAMBLING.
YOU CANT CARRY THE GAMBLER MENTALITY INTO THE MARKET.
IT IS DANGEROUS.
CHECK YOUR EGO. CHECK YOUR OVER ENTHUSIASM AFTER A GOOD WINNING TRADE.
NO WHINING.NO SELF ABUSE.DONT BLAME YOURSELF. TRY TO IMPROVE YOUR ACTIONS.
TAKE OWNERSHIP-YOU ARE RESPONSIBLE FOR EVERY ACTION TAKEN..
EVERY TRADE IS YOUR FAULT. WINNERS LOOSERS ERRORS SCRATCH TRADES ALL ARE PART OF DOING TRADING BUSINESS.
THE MARKET DOESN’T CARE WHO YOU ARE OR WHAt you know.
You must have journal.
Journal your feeling thoughts during your trade.
Read . it helps you understand yourself. How were your emotions then?
Have a plan.
PRICE DURING A TRADE NEEDS BREATHING SPACE.
SET YOUR STOPLOSS OUTSIDE THE BREATHING ROOM OF PRICE.
What you read here in this post is not aa pleasant thing-it is bitter facts of the market.
The discussion is about intraday trading
========================================
You can make money in the markets only if you can
find trend days.
you can retain profits only if you really know risk control
you can make profits only if you can enter at a critical low risk zone.
==========================================
Trend days occur roughly once in 22 trading days.
2 trend days in 50 trading days is realistic opinion.
step 1
Detect a trend day
step2
trade with trend on a trend day
step 3
cut risk to minimum if wrong.
step4
you can-you may- fail 21 times in a row.
If you can handle this many failures,then you are fit.
Due to lack of understanding,lack of practice, your wrong judgement or misfired attacks on market,if you cant survive these many failures,then you are declared unfit or disqualified.
step5
go ahead & trade if you are qualified.
if not repeat steps 1,2,3,4.
======================================================
HOW TO DETECT TREND DAYS?
Here are some
1.Breakout upwards or downwards from range or balance area(ORB)
2.After narrow range previous days(NR4 OR NR7 OR NR10 OR NR15)
3.Large opening gap
4.Typical one way up or one way down behaviour of price
5. Volume shows above average behaviour with pivot break
6. consistent high tick readings
7. high advance/decline numbers
KEEP A WATCH FROM THE DAYS OPEN AS YOUR REFERENCE.
Are you ready?
good luck
COMMITTED TRADER REQUIRES FOR HIS SUCCESS CERTAIN FOUNDATIONS.
1 what are your expectations? Are they reasonble? Are they realistic?
80% win rate in trading is not possible.
Less than 50% win ratio is possible. You can be profitable if you can risk very little.
Getting out of loosing trade needs guts and ability
It can happen only after lot of practice.
Unrealistic expectations bring frustrations-frustations make bad trades & FORCE YOU TO VIOLATE ALL GOOD RULES.Bad trades make losses bigger.
Example-trader says I want to take a profit of 5% today. he waits and finally ends up with loss.
but market moved only 2%. so making profits is out of question as market is not ready to give as much you need or expect.
Psychology is important.
DON’T DAMAGE YOUR PSYCHOLOGY.
ABILITY TO MANAGE YOUR EMOTIONS IS MUST TO DEVELOP.
MOST TRADERS MAKE X PROFIT BUT LATER ON, SOON THEY LOOSE (X+ MUCH MORE).
IDENTIFY AND FIX YOUR FLAWS
2.RISK MANAGEMENT
IT SEPARATES GOOD TRADERS FROM BAD TRADERS.
GOOD TRADERS ARE GOOD RISK MANAGERS.
USE STOPS AND MOVE STOPS
GETTING OUT OF A LOOSING TRADE SHOWS THE STRENGTH OF A TRADER.
HOW MUCH AM I NOT GOING TO LOOSE ON THIS TRADE?
DEFINE LOSS LIMIT
CONTROL.
EVERYBODY THINKS HOW MUCH THEY ARE GOING TO MAKE PROFIT ON ANY TRADE.
BUT IT IS WRONG.THEY MUST THINK OF RISK & CONTROL OF RISK FIRST.
YOU MUST HAVE TWO QUALITIES
1 ABIILITY NOT TO PANIC
2 ABILITY TO ADMIT WHEN YOU ARE WRONG.
(ABILITY TO MANAGE RISK AFTER YOU ADMIT YOU ARE WRONG)
A STRONG TRADING PSYCHOLOGY IS NEEDED.
IT TAKES TIME-LOT OF IT.
MANAGE YOUR EGO. KNOW IT MANAGE IT
DEVELOP YOUR OWN RULES
FOLLOW YOUR OWN RULES PERFECTLY
YOUR RULES MUST SUIT YOU AS A TRADER AND AS A PERSON THAT YOU REALLY ARE.
DECIDE WHEN YOU BREAK THOSE RULES.
EXCEPTIONS-YOU MAKE RULES FOR EXCEPTIONS.
WHAT IS THE PUNISHMENT FOR BREAKING THE RULES?
STOP TRADING FOR X TRADING HOURS OR DAYS
TAKE A BREAK FROM TRADING
LET YOUR MIND REST - GO FOR A WALK - REGROUP YOUR THOUGHTS -STAY AWAY FROM THE MARKET.
GO BACK TO BIG PICTURE-LONG TERM SUCCESS.
-------------------------------------------------------------------
TEN RULES
1 A SCRATCH TRADE IS A WINNER. NOTHING LOST. NO LOSS NO PROFIT-YOU LEARN SOMETHING
2. USE LIMIT ORDERS FOR ENTRY USE MKT ORDERS TO GET OUT
3.NEVER ADD TO A LOOSING TRADE. DON’T BUY MORE AFTER PRICE STARTED FALLING.
ALL LOOSERS ARE AVERAGERS.THEY BUY MORE AS PRICE DROPS
4. LOOSING TRADES DAMAGE YOUR PSYCHOLOGY-DESTROY YOUR CONFIDENCE.
5.NEVER LET A PROFITABLE TRADE TURN INTO A LOSS.TAK LESS PROFIT-OK.
6. DON’T BE A ONE WAY TRADER-BE BOTH A BULL AND BEAR
7. DON’T BE INFLUENCED BY OTHERS. DON’T DO WHAT THEY DO.
8.MAKE 1 TICK ON 100 TRADES BUT DON’T TRY TO MAKE 100 TICKS ON ONE TRADE.
9. DON’T HOPE- DON’T WISH- DON’T PRAY.
LEARN FROM YOUR MISTAKES. RECORD YOUR MISTAKES.
THREE LOOSING TRADES IN A ROW? TAKE A BREAK STOP TRADING.
IF YOU ARE HOPING-WISHING-[PRAYING THEN YOU ARE NOT TRADING YOU MAY BE GAMBLING.
YOU CANT CARRY THE GAMBLER MENTALITY INTO THE MARKET.
IT IS DANGEROUS.
CHECK YOUR EGO. CHECK YOUR OVER ENTHUSIASM AFTER A GOOD WINNING TRADE.
NO WHINING.NO SELF ABUSE.DONT BLAME YOURSELF. TRY TO IMPROVE YOUR ACTIONS.
TAKE OWNERSHIP-YOU ARE RESPONSIBLE FOR EVERY ACTION TAKEN..
EVERY TRADE IS YOUR FAULT. WINNERS LOOSERS ERRORS SCRATCH TRADES ALL ARE PART OF DOING TRADING BUSINESS.
THE MARKET DOESN’T CARE WHO YOU ARE OR WHAt you know.
You must have journal.
Journal your feeling thoughts during your trade.
Read . it helps you understand yourself. How were your emotions then?
Have a plan.
PRICE DURING A TRADE NEEDS BREATHING SPACE.
SET YOUR STOPLOSS OUTSIDE THE BREATHING ROOM OF PRICE.
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