I am trading since the gr8 fall of october 2008. I have learned the following truths:
These will take you to destruction of your Trading Capital
1. Predetermined profit calculations. (Greed takes over and fear wins)
2. small profit targets of 10 to 20 points on Nifty (Over the long run commissions will kill u)
3. Try to make profits everyday (Greed will kill you)
These will Make you consistant Money
1. Enter low risk
2. Enter Breakouts
3. Enter Breakdowns
4. Cut your losses
5. Run Profits
6. Proper SL Management
7.Buy at Support (Range Bound)
8.Sell at Resistance (Range Bound)
Please Note tha t When ADX is more than 30 Use Points follow Trend trading and when below 30 Follow Range Trading
PLEASE NOTE THAT THE ONLY WAY TO REALLY MAKE MONEY IN STOCK MARKET CONSISTANTLY IS TO MAKE BIG MONEY RUNNING PROFITS DURING BIG MOVES.
Odds are heavily against trader who try to trade a lot and try to make profits on daily basis
Odds favour those who never miss a big move. and protect capital during non trending market.
Follow these rules and you will make good money
1. Decide of trading time frame (Stick to it for trading purpose)
2. Check for the Trend of Nifty (ADX Reading greater than 30)
3. Look for entry setup (I use Candle Charts to look for breakouts (Breakdowns), retracements as entry setups)
4. Determine SL before entering position
5. Profit Target should be at least 2 times of SL (any sutup with more than 2:1 makes me smile)
6. Enter as soon as you see a proper setup as for a very short period of time this opportunity is available otherwise you just see price shoots up (Down)
7 Cut reasonable Losses
8. Run reasonable Profits
9. Remove your own emotions let the chart points Decide the profit, Loss, SL
10. I repeat Let the Chart Decide Your PROFIT LOSS AND SL (Here 95% traders make mistakes so become a robot)
11. SL per Trade should be Max 5% of your Trading Capital (Never ever let loss go more than that)
12 PROFITS: let the market decide or take full profits between 7 to 11% run (or when prices go below previous swing low for more than 10 minutes)
13. If you feel very bad about losses STOP TRADING until you fix this problem (Most traders loose because of this problem)
14. Think of trading like this: You have to take 1000 trades of same amount, Out of which you will loose 500 trades and win 500 trades. Average Win Loss ratio is 2.5 : 1
15 NEVER OVERTRADE. GOOD TRADE ONLY COMES 30 % of time. 70 % of the time is difficult time
16. NEVER MISS BIG MOVES BY USING ANY ONE OF THE FOLLOWINGS:
1, TWO DIFFERENT EXPONENTIAL MOVING AVERAGE CROSSOVERS (CONDITION: ADX ABOVE 30)
2. PARABOLIC SAR BUY AND SELL SIGNAL (ADX RULE TO BE FOLLOWED)
3. MOMENTUM INDICATOR GIVES BUY AND SELL SIGNALS
ETC.ETC.
ITS NOT DIFFICULT TO CATCH BIG MOVES AND MAKE BIG PROFITS IN STOCK MARKET AFTER KEEPING IN MIND 1. RISK MANAGEMENT 2. MONEY MANAGEMENT 3. RISK TOLERANCE
Do not hesitate to email me for guidance on
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