Succesful Trading !!!!!

ganeshhity · #1 13th July 2006, 11:49 AM

It is collection of daily quotes from the net,

no secret about it....

here is more or the entire collection from my library (just half of it)

ganeshhity

ganeshhity · #2 13th July 2006, 11:53 AM

Most aspiring traders underestimate the time, work, and money required to become successful.

To succeed as a trader, one needs complete commitment.Just as in any entrepreneurial venture, you must have a solid business plan, adequate financing, and a willingness to work long hours.Those seeking shortcuts are doomed to failure.And even if you do everything right, you should still expect to , lose money during the first five years-losses that I view as tuition payments to be made to the school of trading.These are cold, hard facts that many would-be traders prefer not to hear or believe, but ignoring them doesn't change the reality.

ganeshhity

ganeshhity · #3 13th July 2006, 11:57 AM

I believe that to be a good trader it's very important to be rational and have your emotions under control.I've been trying for years to get rid of anger completely when I completely lose money, and I've come to the conclusion that it is impossible.I can work towards that goal, but until the day I die, I don't think I'm ever going to be able to look a big loss in the face and not get angry.-Monroe Trout

ganeshhity

jdm · #4 13th July 2006, 02:20 PM

hi ganesh,
nice thread. quoting from the book trading in the zone

Quote:

Originally Posted by Trading in the Zone - Mark Douglas

The best traders stay in the flow because they don't try to get anything from the market; they simply make themselves available so they can take advantage of whatever the market is offering at any given moment. There's a huge difference between the two perspectives.

ganeshhity · #5 13th July 2006, 03:39 PM

Quote:

Originally Posted by jdm

hi ganesh,
nice thread. quoting from the book trading in the zone

nice jdm..and a sheer common sense too..

all the best

ganeshhity

ganeshhity · #6 13th July 2006, 07:18 PM

Managing risks is in many ways the foundation of the entire process.Managing risk comes down to two things.First is how you are going to place your stops. That goes back to cutting your losses short.Consider trading as a business venture.Managing risk means recognizing what the costs of trading are.Make a comprehensive plan.Winning traders always treat their trading like a game, but they also look at the whole thing as a money-making business.

ganeshhity

ganeshhity · #7 13th July 2006, 07:20 PM

Being wrong is acceptable.But staying wrong is totally unacceptable.Being wrong isn't a choice, but staying wrong is .To play any game successfully, you have to have some skill, an edge, but beyond that it is money management.Good traders manage the downside; they don't worry the upside....

ganeshhity

ganeshhity · #8 14th July 2006, 05:52 PM

A major misconception people have about stock market is that they tend to confuse short-term volatility with long-term risk.The longer the time period, the lower the risk of holding equities.People focus too much on the short-term day-to-day, -week-to-week and month-to-month price changes-and they don't pay enough attention to the long-term potential.They look at all movement as negative,whereas I look at the movement as a constructive element.For many investors, the lack of sufficient exposure to high-returning,more volatile assets is their greatest risk.infact, investment vehicles that provide the least short-term volatility often embody the greates long-term risk.Without significant price movement, you cannot achieve superior gains.

ganeshhity

ganeshhity · #9 14th July 2006, 05:58 PM

One more important point..people think that they know and have read the market by just watching it from outside...No boss, when you see ups and down, they are just some blues and reds...but when you are invested in that particular stock, you have your heart up and down with those movements.

I simply laugh at people who start with 5000/-..do it for couple of years and they think they've mastered the art of trading and they pump in lacks of rupees......when you play with small buck, you do not feel the pain when it goes down...but when you have lacks invested, you surely feel the pain and commit mistakes.....you enter frustrations and start taking wrong descions in such frustrations.....so one can never learn the art of trading with short amounts/no amounts in a span of couple of years....

anyway, smarter person grasps it quickly...........

Ahh, one more thing...I heard from a genius "stock market is a place where wealth is shifted from impatient to patient person"

ganeshhity

ganeshhity · #10 14th July 2006, 06:05 PM

The basic philosophy is that price follows growth and that the key to superb performance in the stock market is picking the companies with the best potential earnings growth.Everything else is secondary.Interstingly, the high growth stocks that meet my criteria often sell at extremely high P/E ratios.The so called prudent approach of buying only stocks with average to below average P/Es will automatically eliminate many of the best performers.The stocks that I tend to buy are also often companies that are not followed by, or only lightly followed by industry analysts, a characteristic that I believe lead to greater inefficiencies and hence greater opportunities.

ganeshhity

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