38 steps to becoming a trader

[chintan786]

hi all.... nice to read abt these rules..I also want to share my own stretegies....

here they are..

1) I don't like day-trading .. but i like to trade on some news.. an tht also LTD to certain scrips..

2) Mostly i prefer doing " Buy-today Sell-Tommarow".... as one shd keep their profit positions open and cut down their losses.

3) Avoid doing trading in First 15 mins when mkt open.

4) In F&O .. I prefer doing trading in samll lot size scrips.. my fav. RIL.

5) check the technicals .. momentum and bottom formation... for trading.

6) i also like switching from I scrip to another...eg.. recenly i sold all Arvind mills at 86.. and switch to IFCI at 79.. Arvind go upto 93 and IFCi frm there bounced to 99..... I always look for this type of oppertunities....

7) When i am selling a huge chunk and not sure abt direction... then what i do is sell in delivery and buy in margin with strict stop loss.... this is wht ICSA tought me...



8) One more thing if u are trading in samll caps.... small caps generlly rally after 2nd or 3rd day of rally in Larg caps... this sme times come handy... if u want to trade in samll caps.

9) best time according to me for making postion is after 1330hrs to 1415hrs.... pic become clear almost after this..

It is good to be partially correct then completly wrong

chintan

 

[hari09omkar]

9) best time according to me for making postion is after 1330hrs to 1415hrs.... pic become clear almost after this..

Shift the position-taking time to 45 minutes later at 3 pm,if u are doing a 5 day trade or more.Just an unwanted tip.

http://www.traderji.com/139446-post1.html

 

[Market Wizard]

You mean John Piper?

Yes John Piper. Its a name that totally slipped out of my mind.

Thank You CV.

 

[yatishjain]

many tips.... agree with most of them.... except the last 30 mins////

 

[sureshkrishnan]

This article is great!

38 steps to becoming a trader

They are as follows:

1. We accumulate information - buying books, going to seminars and
researching.
2. We begin to trade with our 'new' knowledge.
3. We consistently 'donate' and then realise we may need more
knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our 'updated' knowledge.
7. We get 'beat up' again and begin to lose some of our confidence.
Fear starts setting in.
8. We start to listen to 'outside news' and to other traders.
9. We go back into the market and continue to 'donate'.
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress.
13. We get 'over-confident' and the market humbles us.
14. We start to understand that trading successfully is going to
take more time and more knowledge than we anticipated.

MOST PEOPLE WILL GIVE UP AT THIS POINT,
AS THEY REALISE WORK IS INVOLVED.

15. We get serious and start concentrating on learning a 'real'
methodology.
16. We trade our methodology with some success, but realise that
something is missing.
17. We begin to understand the need for having rules to apply our
methodology.
18. We take a sabbatical from trading to develop and research our
trading rules.
19. We start trading again, this time with rules and find some
success, but over all we still hesitate when it comes time to
execute.
20. We add, subtract and modify rules as we see a need to be more
proficient with our rules.
21. We feel we are very close to crossing that threshold of
successful trading.
22. We start to take responsibility for our trading results as we
understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our
methodology and our rules.
24. As we trade we still have a tendency to violate our rules and our
results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market
and trade.
28. Our trading results are getting better, but we are still
hesitating in executing our rules.
29. We now see the importance of following our rules as we see the
results of our trades when we don't follow the rules.
30. We begin to see that our lack of success is within us (a lack of
discipline in following the rules because of some kind of fear)
and we begin to work on knowing ourselves better.
31. We continue to trade and the market teaches us more and more
about ourselves.
32. We master our methodology and our trading rules.
33. We begin to consistently make money.
34. We get a little over-confident and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading
becomes boring, but successful) and our trading account
continues to grow as we increase our contract size.
37. We are making more money than we ever dreamed possible.
38. We go on with our lives and accomplish many of the goals we had
always dreamed of.

Most traders will identify with this list and should be able to place
themselves within these steps. Keep in mind that very few people
progress through these steps in an orderly fashion. Developing your
trading skills is an iterative process. For example, you may reach
Step 13., find that although you were making money, your basic
premise for trading was flawed (you might have been benefiting from
the bull market, rather than your own trading prowess and then have
been rudely awakened when the market entered a bear phase) and you
may drop back to Step 4. and start 'climbing' the steps again.
Having the proper mindset, attitude and psychological makeup becomes
increasingly important as you progress through the steps. The focus
of the earlier steps is on external issues, i.e. developing
proficiency in the mechanics of trading while the focus of the
latter steps (particularly from Step 30, on) is on internal issues,
i.e. improving ourselves mentally and psychologically, maturing as
trader


regards
creditviolet

 

[uasish]

Thks for bringing this up once again.

 

[zukraf]

this is the best way to reach the top

 

[sudoku1]

VERY SOOTHING 2 READ.....but hard 2 implement....once mkt starts its up journey......rules ki aisi taisi.....!!
thes rules were there @ 21 k also....how many of us did really stick 2 them....???

 

[naval aggarwal]

very intelligent+practical thought

 

[naval aggarwal]

And that is what all trading education is about........to determine at what point we can say that this ship is sinking so that we can jump off it.

And also to not jump off too early and watch helplessly as the ship moves on without us.

Saint

practically very intelligent advice