New tradersa biggest trading problem-solutions

#1
Hi friends

The new trader finds the following problems as he starts trading.
1.He buys stocks. price starts falling and continues falling.
2.Somebody gave a tip short the share SBIN. he shorts it. sbin SHARE STARTS SHOOTING UP.
3.He looks for estimating risk & reward. he reaches nowhere.
4.He feels that market knows his every move before he start trading.
be it buy be it sell he always looses money.
5.IN a market that can move only for Rs 150, he is trying to make a profit of rs 400. in his waiting for impossible profits,he looses the profits he already has in his hand and finally ends up in a loss. Can you call this greed?
why this phenomenon repeats again and again?
He looses money & adds more money into his account.

he attends one day (6 hour technical analysis course) for rs 1000.he learns
6 indicators like RSI(BAAP OF THE MARKET),MACD(MOM of the market),stochastics(sakuni),MFI,CCI,RS.
hE IS IN FACT GIVEN GURANTEE OF 7% A MONTH OF PROFITS.
HE goes home starts applying and nothing seem to work.
he joins forums-finds 90% of traders just trade only to fail again & again. only 10% traders succeed.
HE STARTS DIGGING THE MOUNTAIN TO FIND THE ELUSIVE EVASIVE FACTS-THE RATS.
-------------------------------------------

From this losses,desperation,frustration,,how can you lead him into positive feeling of success?

think.
have something what traders normally miss,ignore? point it out.

QUOTE
When canadian scientists discovered INSULIN in 1906,the medical world thought the Diabetes puzzle is resolved. After 89 years new generation of researchers found another vital component that stays next to insuline and works so hard to get it distributed right,fast,effectively exactly where required.
Ok what is special about above events?
When you make mistake in step 1 of a 20 step equation,you have Only one way-go back to step 1 and rectify or else you problem never gets resolved
.
Admit the mistake.rectify it.
Markets are no different.


IF you go without guidance with overconfidence and loose all the money after you overtrade.
you look at same indicators same charts that are looked at by over 20 lakh traders-you become that goat which turned left when it saw the first goat of the herd turned left by random occurrence.
what does this mean?
cant think??? then dont trade .
 
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nms

Active Member
#2
Hi Sir,
Actually it is happening 90% traders/investers. I like your trouth as because I am one of them. Is there any solution? No technical,fundamental or homework is working as because bad/good news superseeding every thing.
Thanks
 
#3
hi
see the chart
observe
think
http://i47.tinypic.com/14xgbp2.png

WHEN I asked my friend "please tell me honestly what is your problem in trading?"
He said- "I loose a trade. I feel i will make big profits in next trade.I go and trade I loose again.
Even though I am loosing, I cant control my urge to trade,I am not able to stop trading.
I feel I have become like a gambler. May be I can never really make money in these markets."


precautions for traders not gamblers
a) Dont make your broker rich (dont overtrade)
b) Low brokerage doesnt bring trading profits.

(your methodology,discipline,patience makes money when timing is right)
============================================================
TWO POINTS TO THINK SERIOUSLY ABOUT ARE
============================================================
1) WHY A dayTRADER SHOULD TAKE ONLY 2% RISK OR LESS-LIKE PROS DO.(IF NOT WHAT IS WRONG?)
(note eod traders can take upto 5% to 7% loss)
2)YOU MUST HAVE A MECHANICAL TRADING METHOD WITH CLEARLY DEFINED RULES.A really good system wins 6 times out of 10.but you need to say this as -A really good trading system looses 4 times and may win 6 times,and a trader must control loss as soon as he senses it to start-he cannot postpone action beyond his rule of risk.



Just ask yourself-which of these brokers you like to make rich?
can you find out if your internet failed or IIFL server failed? Actually their servers fail once in a while.

INDIAINFOLINE(they take your money without your permission,change brokerage charges as they like-At their hyderabad -secbad-office three guys do this regularly-kesav,sredhar,subramaniam etc)-check www.clientcomplain.com see people who complained and see what indiainfoline headquarters replied-nothing-they literally sleep over the issues and blame their franchisee or xyz).Complaints were sent to top management of IIFL about the malpractices but they do nothing-seems they support their staff. really bad-pity in the city.
you can mail the people who complained and get all details from a to z about the cheating process.
Well we can talk about other brokers one by one.
more you trade more your broker gets rich.
Is this what you want?
 
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#4
Why the first goat in the herd of goats turned left?
It has no idea.no logic.

The OTHER goats followed it very well.
This is herd mentality.
my confession
I WAS THIRD FROM THE LAST.
I entered the trade and soon the trend ended.
by the time i gathered my senses from shock,the price collapsed.In that confusion i forgot to exit the trade.I was looking at wrong chart that had no dynamic stoploss line.
.
 

Raghuveer

Well-Known Member
#5
Great thread you have started Ford. Waiting for continuation posts.

The clue in the below image you posted was good.
see the chart
observe
think
 
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