Competence
comes from planning and implementation-and practice
after you become competent , your confidence begins showing up
a competent trader has done these things
1 he finds a plan
2 he writes down the plan and separates it into rules for set up, entry, trigger,stoploss initial-breakeven stop--trailing stop-target1-target2
3 he begins testing the plan
if he cannot do 300 tests, he becomes unfit and becomes incompetent.
he gets thrown out into 90 percent failure groups
4 admit correct re assess finetune
not willing to admit mistakes? you killed your golden goose yourself.
5. define how far you proceed into negative trade zone- or proceed into loss deeper
is 2% loss ok for you?
for EOD based swing trades 7 percent loss is max tolerable
Rule 1a
Make trading decisions when market is closed.record it in writing
write everything you thought
write your entry exit stoploss max risk
reward-risk ratio
1b
Check your skill level when market opens
was your entry perfect?
did your stoploss hit?
whether the trade moved on to become a winner? really?
find out why you went wrong? record it.
dont justify dont rationalise just admit if you are wrong
learn what market teaches you.
write lesson learnt
repeat his continue learning
----------------------------------------------------------
rule2
choose a mechanical rule based trading method-define all steps as rules
--------------------------------------------------
this way everytime you violate a rule it shows up'you can improve faster
you can identify your weak zones.(like you hate placing stoploss.etc)
cant do this ?
dont read anymore.
becoz it will not work for you.
---------------------------------------
rule3
trade small till you can prove that you can profit 6 out of 10 times.
always always predifine your maximum loss -think how much loss you can handle for your 10000 account
you have 5 laks.
dont trade right away-dnt give your money to others.
you can tell them if you must-here is 10k can you double it?everytime you double my capital, i will invest another 20k
if so prove it. he will not come back
trade with 10k or 20k if you can make profits, then put 10k more.
if you fail, take 10k out go back to study-remedy-fine tune
-----------
the trade method works in stocks futures commodities
why you need 2 lak capital when you can prove it with 10000 rupees capital that you can double it
ask him
are you confident?
are you sure?
he says yes-then
tell him
please write here on this paper
i can double 10000 in 10 days
that is all
no champion will show up.
--------------------------------------------------
what is the traders style?
he hates Eod trading
he likes intraday trading
he has no skill as of now
HE cannot answer any simple trading question
he generally is seen begging other traders-what to buy -tell me -tell me
he cannot read charts
he trades on 1minute and 5 minute charts
-------------------------------------
judgement
-----------------------------
put this guy into solitary confinement- let him prove that he can make money in daily based trading
if he cannot make money in simple comfortable daily based trading he cannot succceed in any trading .
First
master eod based trading till you succeed
go with just one stock till you make consistent gains
Are you listening?
if you are the one who said- it is difficult-i prefer daytrading then here is need 2
to become a daytrader you must be above average intelligent ,fast grasping,quick understanding,having market exposure of at least 2 years
do you have it?
if not dont daytrade at all
they will take all your clothes including underwear.
He cannot answer simple questions but he likes only to daytrade
wow!
anyway if he is humble guy ready to learn ready to improve let him try to answer these simple questions
1.how does it look on a chart when price is in equilibrium
and when it is not?
this is the whole thing
2 when to buy a stock?
3 when would you sell a stock?
4 what amount of risk would you take if trade begins moving against you
5 do you use multiple charts or just one or two ok?
============================================
distraction zone
take a price chart on 1 minute
have RSI(4) chart below it
now divide rsi chart into 4 zones each 25 percent.
draw a trendline on price chart
draw a trendline on RSI CHART
WHEN PRICE BREAKS ABOVE A DOWNTRENDLINE, AND when rsi breaks above a trendline and above 25
go long -buy
exit long trade when rsi goes below 25
------------------------
This is time pass for guys who hate reading and picking right points
this is not the strategy i suggest
good luck
QUOTE
If a trader cannot make profits on daily charts, he is unfit to daytrade.
he is disqualified for daytrading.
comes from planning and implementation-and practice
after you become competent , your confidence begins showing up
a competent trader has done these things
1 he finds a plan
2 he writes down the plan and separates it into rules for set up, entry, trigger,stoploss initial-breakeven stop--trailing stop-target1-target2
3 he begins testing the plan
if he cannot do 300 tests, he becomes unfit and becomes incompetent.
he gets thrown out into 90 percent failure groups
4 admit correct re assess finetune
not willing to admit mistakes? you killed your golden goose yourself.
5. define how far you proceed into negative trade zone- or proceed into loss deeper
is 2% loss ok for you?
for EOD based swing trades 7 percent loss is max tolerable
Rule 1a
Make trading decisions when market is closed.record it in writing
write everything you thought
write your entry exit stoploss max risk
reward-risk ratio
1b
Check your skill level when market opens
was your entry perfect?
did your stoploss hit?
whether the trade moved on to become a winner? really?
find out why you went wrong? record it.
dont justify dont rationalise just admit if you are wrong
learn what market teaches you.
write lesson learnt
repeat his continue learning
----------------------------------------------------------
rule2
choose a mechanical rule based trading method-define all steps as rules
--------------------------------------------------
this way everytime you violate a rule it shows up'you can improve faster
you can identify your weak zones.(like you hate placing stoploss.etc)
cant do this ?
dont read anymore.
becoz it will not work for you.
---------------------------------------
rule3
trade small till you can prove that you can profit 6 out of 10 times.
always always predifine your maximum loss -think how much loss you can handle for your 10000 account
you have 5 laks.
dont trade right away-dnt give your money to others.
you can tell them if you must-here is 10k can you double it?everytime you double my capital, i will invest another 20k
if so prove it. he will not come back
trade with 10k or 20k if you can make profits, then put 10k more.
if you fail, take 10k out go back to study-remedy-fine tune
-----------
the trade method works in stocks futures commodities
why you need 2 lak capital when you can prove it with 10000 rupees capital that you can double it
ask him
are you confident?
are you sure?
he says yes-then
tell him
please write here on this paper
i can double 10000 in 10 days
that is all
no champion will show up.
--------------------------------------------------
what is the traders style?
he hates Eod trading
he likes intraday trading
he has no skill as of now
HE cannot answer any simple trading question
he generally is seen begging other traders-what to buy -tell me -tell me
he cannot read charts
he trades on 1minute and 5 minute charts
-------------------------------------
judgement
-----------------------------
put this guy into solitary confinement- let him prove that he can make money in daily based trading
if he cannot make money in simple comfortable daily based trading he cannot succceed in any trading .
First
master eod based trading till you succeed
go with just one stock till you make consistent gains
Are you listening?
if you are the one who said- it is difficult-i prefer daytrading then here is need 2
to become a daytrader you must be above average intelligent ,fast grasping,quick understanding,having market exposure of at least 2 years
do you have it?
if not dont daytrade at all
they will take all your clothes including underwear.
He cannot answer simple questions but he likes only to daytrade
wow!
anyway if he is humble guy ready to learn ready to improve let him try to answer these simple questions
1.how does it look on a chart when price is in equilibrium
and when it is not?
this is the whole thing
2 when to buy a stock?
3 when would you sell a stock?
4 what amount of risk would you take if trade begins moving against you
5 do you use multiple charts or just one or two ok?
============================================
distraction zone
take a price chart on 1 minute
have RSI(4) chart below it
now divide rsi chart into 4 zones each 25 percent.
draw a trendline on price chart
draw a trendline on RSI CHART
WHEN PRICE BREAKS ABOVE A DOWNTRENDLINE, AND when rsi breaks above a trendline and above 25
go long -buy
exit long trade when rsi goes below 25
------------------------
This is time pass for guys who hate reading and picking right points
this is not the strategy i suggest
good luck
QUOTE
If a trader cannot make profits on daily charts, he is unfit to daytrade.
he is disqualified for daytrading.
