diary of a day trader

[TraderRavi]

Just because we have 10K or 10L is no reason that markets should give us money ...

Do we have the method and skill to implement the method to pull money out of the markets consistently is the real question ...

Thanks.........:thumb:

 

[Arsh]

Arsh, I cant find the link in reuter's site..........

Ravi bhai, it's a live column during market hours only. Weekend and Market holidays pe it doesn't come. Kal dekhna on reuters India homepage right hand side top corner, around 9am they start http://in.reuters.com/

All the very Besto :thumb:

 

[TraderRavi]

What plays major role in trading, Is it tools, market directions or trading systems. Of course, these factors will play a role in Intraday trading. But an important role is played by our emotions. We initialize the buy and sell orders from our emotions. So its very important to have control on the following emotions.

1) Greed:

Greed is an enemy of Intraday trading. Once, you have earned the profits from the trade, dont hold on to the positions expecting for big profits in a single trade. There is no need to make unnecessary trades in a single day. You will be having many sessions to trade.

2) Fear:

A Intraday trader will always be having the fear of loosing money. But it shouldnt prevent him from trading. All the day traders will have losing trades. But it shouldnt surpass the winning trades.

3) Book your profits on the targets which you have already decided.
In order to have a successful trading, its advisable for the Intraday traders to put the limit order once they buy or short sell their trade. You shouldnt increase your targets, if the share price start moving in your favour. Because, it could be risky.

4) Stay calm:

Its very important to stay calm during the trading sessions. You should not get over excited for winning a trade and at the same time you shouldnt panic to a loosing trade. If you dont control these emotions, then they will adversely affect your trading decisions.

5) Decision making:

Efficient decision making is vital for the successful Intraday trading. You should know when to enter and exit trades, you should act promptly when the trade comes along.

6) Disciplined trade:

Its advisable to maintain the trading log which keeps the details of every trade undertaken by you. This will help you to know how you have executed your trade and where you have gone wrong. Through this you can rectify your mistakes and carry on disciplined trade.

7) Stubbornness:

Its very important to be flexible while trading. You should not be stubborn while trading in the stock market. If the stock market is giving different signal which was not interpreted by you, then you have to go with the market direction and you shouldnt stick to your ego, saying that you cant be wrong.

If you are being inflexible, then definitely you will end up losing money.
So, if you are able to control your emotions while doing Intraday trading, you will be definitely rewarded by the stock market.

...........:thumb:

 

[TraderRavi]

Excerpt from The disciplined Trader by Mark Douglas
--------------------------------------------------

1. Refusing to define a loss.

2. Not exiting a losing trade, even after you acknowledge the trades potential is greatly diminished.

3. Getting locked into a specific opinion or belief about the market or stock direction.

4. Focusing on price and monetary value of a trade instead of the potential for the market to move based on its behavior and structure.

5. Revenge trading to take back from the market what you have lost.

6. Not reversing your position even when you clearly sense a change in the market direction.

7. Planning for a move or feel one building, but then finding yourself immobilized to execute the trade, thus denying yourself the opportunity to profit.

8. Not acting on your instincts or intuition.

9. Establishing a consistent pattern of trading success over a period of time, and then giving your winnings back to the market in one or two trades and
starting the cycle all over again.


*******


How to over come wrong thinking and trading patterns.
-----------------------------------------------------

1. Define and enter a stop loss at the time of entry.

2. Define a maximum amount of loss after which no matter what, you will exit the trade.

3. Be flexible and open to change your opinion on the market and stock direction.

4. Have a well defined system of trading and follow it.

5. After a loss or a trading setback, do not impulse trade. Study what went wrong. Also trade small position size or take a break from trading till feeling confident.

6. Accept that stock can change direction at any moment, and that all trades cannot be profitable. A successful trader has to keep losses small, and should not let a profitable trade turn into a loss.

7. To overcome uncertainty and to enter trade with confidence, It gets easier when a long or short entry is made and the stop loss is defined beforehand at the time of entry.

8. Successful trading involves the ability to pull the trigger. The confidence to pull the trigger come from trading with rules.

9. Discipline and risk management is a must to ensure that trading is consistently profitable, while at the same time not risking more when on a profitable run.

10. Finally, it is important to keep a record or a dairy of all the trades executed each day and to review the trigger points for the entry and exit and if they are as per the defined rules. Lessons learnt from wrong execution to be codified into rules.

................:thumb:

 

[soft_trader]

Guys,

Do anyone know why the member Sumitkumarsingh got banned?

 

[Smart_trade]

Guys,

Do anyone know why the member Sumitkumarsingh got banned?

Ban is the last action in the hierarchy of actions taken by Admin if a member violates forum rules and accepted norms of good behaviour. When a member violates code of good behaviour he his given light warning ,if the violation is serious, he is given a stern warning...and inspite of such warnings if a member continues the gross violation, he is banned.

In extreme cases when giving a warning is not considered desirable by Admin considering the nature of violation, the member is banned immediately.

In case more information is needed on a ban, member may pm Traderji for further clarification.

Smart_trade
Moderator

 

[TraderRavi]

Bakwas day....to hell with such bullishness....lost a fortune !!......:annoyed:

 

[timepass]

Bakwas day....to hell with such bullishness....lost a fortune !!......:annoyed:

Gap down and then consolidation the whole day... another premium eating day .

 

[soft_trader]

Bakwas day....to hell with such bullishness....lost a fortune !!......:annoyed:

Exactly!!!

I was expecting more downside after EU opening, but it did the opposite :annoyed:

Just look at Hangseng and Nikkei, a sea of blood and our markets closing just down by -0.65% Really HOPELESS :annoyed::annoyed:

 

[TraderRavi]

Gap down and then consolidation the whole day... another premium eating day .

I thought ki RBI policy ke chakkar mein, +ve closing de denge...........