Mindset of a newbie...

[biyasc]

Develop a strategy and test it vigorously until you are satisfied with the results before you commit any serious money. Don not go after tips!!

some peoples spend their whole life by searching the perfect strategy suitable for them. but rarely they get one. once they got it, they also lost it soon after couple of loosing trades.

 

[biyasc]

Develop a strategy and test it vigorously until you are satisfied with the results before you commit any serious money. Don not go after tips!!

Dont commit more than 10% of your capital to one idea.

Diversify your trades in different sectors. If you risk 10% each in icici and axis, thats a 20% risk. Becoz both of them are from one sector and there is a high probability for both going the same way.

Trade sectors instead of individual stocks. If you are bullish about banking sector, Instead of risking the entire 10% in one company, diversify the risk to 2 or more companies.

If you are a daytrader, always use stops to limit loss.

Cut down the number of your trades when there is a losing streak. Take a day off and try to find what went wrong.

Be willing to make mistakes. There is nothing wrong in it. The best traders are those who learn from their mistakes.

And Remember.... The best trades are the ones in which you have all three things going for you: fundamentals, technicals, and market tone. First, the
fundamentals should suggest that there is an imbalance of supply and demand, which could result in a major move. Second, the chart must show that the market is moving in the direction that the fundamentals suggest. Third, when news comes out, the market should act in a way that reflects the
right psychological tone. For example, a bull market should shrug off bearish news and respond vigorously to bullish news. If you can restrict your activity to only those types of trades, you have to make money, in any market, under any circumstances (Market wizards).

if you are talking about day trading/scalping, then there is no need to follow fundamental/s.

btw, your post was good. keep it up.

 

[biyasc]

Develop a strategy and test it vigorously until you are satisfied with the results before you commit any serious money. Don not go after tips!!

Don’t commit more than 10% of your capital to one idea.

Diversify your trades in different sectors. If you risk 10% each in icici and axis, thats a 20% risk. Becoz both of them are from one sector and there is a high probability for both going the same way.

Trade sectors instead of individual stocks. If you are bullish about banking sector, Instead of risking the entire 10% in one company, diversify the risk to 2 or more companies.

If you are a daytrader, always use stops to limit loss.
Cut down the number of your trades when there is a losing streak. Take a day off and try to find what went wrong.

Be willing to make mistakes. There is nothing wrong in it. The best traders are those who learn from their mistakes.

And Remember....” The best trades are the ones in which you have all three things going for you: fundamentals, technicals, and market tone. First, the
fundamentals should suggest that there is an imbalance of supply and demand, which could result in a major move. Second, the chart must show that the market is moving in the direction that the fundamentals suggest. Third, when news comes out, the market should act in a way that reflects the
right psychological tone. For example, a bull market should shrug off bearish news and respond vigorously to bullish news. If you can restrict your activity to only those types of trades, you have to make money, in any market, under any circumstances” (Market wizards).

what about swing/position trading. dont you think that a swing/position trader need stop loss to limit losses.

 

[vpsarathy]

Any one entering stock market must know and apply Stop Loss if he does not want to be in losses, whatever kind of trade it be. Learn stop loss b4 u learn how to trade. I learnt the hard way
vps

 

[riser3]

" Trading is something that every one Knows + something that u alone know "

 

[yasirdxb]

if you are talking about day trading/scalping, then there is no need to follow fundamental/s. btw, your post was good. keep it up.

No matter what time frame you trade, its always better to know the fundamentals behind the move. After all its not the RSI or Trendlines or any other technical indicators that moves the market. always study the big picture and trade along it. your chances will be high.

 

[biyasc]

No matter what time frame you trade, its always better to know the fundamentals behind the move. After all its not the RSI or Trendlines or any other technical indicators that moves the market. always study the big picture and trade along it. your chances will be high.

i trade 1-minute charts & my holding period is around 5-15 minute. can you please describe what fundamentals i have to look out?

 

[biyasc]

i trade 1-minute charts & my holding period is around 5-15 minute. can you please describe what fundamentals i have to look out?

still waiting for your valuable advices.

 

[yasirdxb]

still waiting for your valuable advices.

Sorry.. I was out of town. got some serious business(than advising a 1 minute chart trader)

Juz kidding...

Okay.. biyasc,

I have seen trdaers trading tick charts in fx market(I myself trade USD/INR tick charts). even they keep an eye on the fundamentals. then again if you are good at what you do without any idea about the fundamentals,.. thats okay with me. if you seriously wants to know how to benenfit your trading by keeping an eye on fundamentals, send me your trades details for the last month. since I have no idea about your strategy, I cannot help you.

Wish you a profitable trading,

Yasir.

 

[UNTOLDMELODIES]

hello every body,

Hope the markets are keeping you in good shape, am a newbie jus a couple of months old into trading , and should confess that it was quite a adventurous journey. Just about managed to lose 95% of the capital.. Few things which i learned the hard way.

1} Enter the market with realistic expectation, dont invest all ur money into stocks, have a buffer it would help you to start again.(intial sucess would tempt you to invest more and one tend to be more reckless with market calls)

2) never wait for the markets to go ur way, follow the market.(i had a negative bias so predominant i missed the last rally which almost wiped me out)

3) do you home work no matter what ever others tell you, get ur basics right

4)Always work with a proper stop loss in place ( learned it the real hard way)

Thanks for you suggestion and this site has helped me in undestanding the fundamentals better,

Happy Trading
&
Keep smiling