An Excellent Collection of ST's Posts.

[Tukka Trader]

It is definately possible to make 5 to 10 % per month on your trading capital but it is not simple...it is tough, it requires plenty of work, discipline,mental qualities and a strong will to succeed. It is not that you have a formula...go on trading and make 10% pm

Just to give you an idea of what is possible in trading,a good future trader after 3-5 years experience makes 15-20 % per month. I have seen exceptional traders making 55-60% per month never risking more than 1.5 % of their trading capital on any single trade. All this in real time trades reporting....but they are just too good.....

With these benchmarks we all should try to improve our performance....no way an easy task...but then anything too good is never too easy in life....

Best wishes,

Smart_trade
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While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards

 

[Tukka Trader]

Few qualities I have observed in some large and very good traders are as under :

1) They never argue whether the market will go up/ down. They will listen to others views and do as what they think is right but will not argue.

2) They trade on information. They are continuously talking to various sources and they get information about who is selling and who is buying. FII buying/selling information is also leaked to them in advance.

3) They are very fast in booking losses if wrong but hold the positions till the trend ends.

4) I have seen some 5-6 very large traders but not even one has ever spoken about how much they made in a day/week. If asked specifically how much made in recent uptrend they will give general answer like " trading has been good" or " Rupiye ka kya...aate jaate rahta hai"...or" bhai yeh bhav me mandi khota lagta hai"....

5) They are very humble and the trading success has not gone in their head.They will not redicule even a young loser trader going to them for advice on trading.

Smart_trade
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While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards

 

[Tukka Trader]

Markets can be rigged in short term but in longer term the trend and fundamentals catch up and they cannot be rigged over long term.

All markets are rigged to some extent. Where money is involved, the rigging and manipulation will always be there. But that will cause short term trends and reversals. Trader should learn to take advantage of this rigging ( without taking part in rigging) by trading these short term moves,rigged or otherwise. We have charts,volumes,trends,reversals and above all choice when to sit out of the market to tackle the problem of rigging. It is nothing to be feared by traders.

We must learn to change perceived negatives to our advantage.In my long stint in trading, I never felt that I am at a disadvantage due to market rigging....not even once...so just dont bother about it and concentrate on craft of trading.

Smart_trade
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While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards

 

[Tukka Trader]

Traders can also make big money..I personally know a trader who started with trading 50 Reliance shares as a young trader and he was a brilliant trader, trading intraday and swing....after about 6-7 years of trading experience ,I have seen him taking huge positions of 40,000 to 50,000 Nifty....I am told that his monthly payout from his broker is in Cr .

But these traders never come to forums like ours ...they have a small group of large traders. They dont argue on the markets and they are very humble....

I sometimes meet him in the market buying vegetables and we discuss a few things and people will never believe that he is the guy doing vegetable shopping when he might have few crores position in swing trades.

Smart_trade
__________________
While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards

 

[Tukka Trader]

http://www.telegraphindia.com/1140606/jsp/nation/story_18484369.jsp#.VjJnLm4hlqC

Success story of a trader who built over 600 Cr networth on stock markets trading .He is a long term trader.I know this person and he comes from a modest middleclass background. Great lessons for every trader.

Smart_trade
__________________
While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards

 

[Tukka Trader]

One thing I learnt the hard way is when the new trend is progressing it does not come to halt and market reversing suddenly ....so in a short term bull trend every correction is not a end of the bullish trend and start of a bearish trend....the trends continue in its direction for some time and travel some good distance even without changing the longer term trend.


Smart_trade
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While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards

 

[Tukka Trader]

People who grow rich dont get their riches from just one source. They will have trading, investments, fixed income, mutual funds and real estate in their portfolios.They create multiple income sources and they are not dependent on just one income stream.

So they start with trading with small capital, trade successfully, invest part of their earnings in growth stocks, then invest in mutual funds and real estate in their wealth building phase. After that comes wealth preservation phase in which they also include fixed income securities and mutual funds in their income streams....but all that is created from trading income. This is practically possible, no daydreaming, it is done by many and being done by many traders.

Buying Infy or Wipro ,Eicher Motors or Bosch at the start alone should not be considered as only way to make wealth. How many could identify these stocks when they were unknown....so buy them after they have proved their worth and they get onto the growth path and still continue on a growth path.

If a trader makes Rs 50-60 K in trading and spends 25 K and remaining 25-35 K per month is put in any investment avenue which gives him 16-18 % CAGR....in 15-20 years he can be rich...but if one wants to be rich in 2 years then be prepared to rags to riches to rags to riches and again rags roller coaster many times in those 2 years and 95-98 % will end up blowing up all the money they have. "Slow and steady wins the race " is true in trading and investments too....being rich takes time,patience and hard work.

If anyone after 4-5 years of trading has a doubt about whether wealth can be made from trading then it is better that he switches over to any other profession/ business before it gets too late ,because one has to first believe what one wants to achieve.

Smart_trade
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While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards

 

[Tukka Trader]

We should not quit after making good money. The trades we take should be independent of the fact of whether we make money or loose.They should depend on the system we trade. I see this argument that after making money we stop trading it is a an argument from a scared trader. We should stop after we exceed our per day max loss limit as part of our MM. The profit made also could mean that the market is acting right or we are trading in tune with the market so we may have more winning trades. No reason for stopping trading after a profit....we have to make large profits on good days to pay for small losses on bad trading days.

But many will put forward arguments that we should protect the profit made etc...protect yes but with stoploss...not by not trading. So everyone to himself as per his comfort and beliefs.


Smart_trade
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While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards

 

[Tukka Trader]

One needs to strike a balance between booking profits too early and staying in position too late. I have seen many booking 50 % profits at 25 or 30 points and trailing the balance position. But that choice is a function of whether a trader is trading a sideways day or trend day. On a trend day holding positions will be much more effective.Markets give indication by the steep fall/rise, size of breakout bars etc....

But all said and done it is the judgement of a trader whether we are in a big move trending day or choppy sideways day....and we can be wrong on number of occasions too.

Smart_trade
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While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards

 

[Tukka Trader]

Average 400 points after brokerage and taxes is pretty good....but difficult in actual trading ,in some months one can make 700 points and in some months 100 points...on average if one makes 250-300 points. one can be rich with proper MM.

Smart_trade
__________________
While amateurs go broke by taking large losses,professionals go broke by taking small profits...... William Eckhardt in New Market Wizards