The top 5 things I learnt from trading


Well-Known Member
1. do not use any time frame, use only price movement chart with ticks, by fixed ticks as per your determination with respect to the amount of stop u can take per trade.
any indicators must be plotted only on the resulting candles which as per fixed range price movement
2. stops shud not be moved adversely other than to trail the trend.
3. follow the above strictly and that is all there is to trading
1. The 50-day moving average line is one of the most reliable technical toos for making buy or sell decisions.

2. Don't buy a stock that is below its 50-day and 200-day moving average lines.

3. Avoid buying a stock once it has advanced 5% or more from its buy point.

4. Stocks failing to recover from falling below their 50-day movine average may indicate that institutions are no longer interested, and the upward trend may be over.

5. Sell if your stock has a long advance and drops below its 50-day moving average line and stays below the line for many weeks, unable to rally
1. Patience
One look at the minute chart makes it clear that price movement consists of constant fluctuations in both directions. The market behaves like a living organism, it is constantly in motion :)
2. Acceptance of negative results
Reconciling the loss is very difficult at first. It is only me who is to blame, so you need to accept this and wait for the next opportunity to make money, cover the loss, and make a profit.
3. Planning
This came to me with experience. Any earning speculator always has a plan B. He understands what he will do if he loses some money.
4. Be systematic
The term “trading system” appeared for a reason. This is the basis of the basics, the main thing that every trader should have. Trading without any general entry and exit rules is simply not possible. And it should be done regularly.
5. Understanding that everything is connected
One who strives for success always tries to find an explanation for what is happening. Trading showed me that very often events from a completely different sector of the economy, politics or elsewhere can easily make significant changes to other aspects of our life.


Well-Known Member
Yesterday one of the traders was crying how could crude go above $58.17 which he said a strong resistance. One important point he is missing. Crude cannot go below $0. This is 100% sure and certain. Crude's upper limit is not limited. It can go anywhere. Support and Resistance need not work. They can get broken. Who are we to stop traders/investors to buy at or above $58.17. When mania sets in, market becomes illogical. It continues to be illogical until our loss bearing capacity is vanished. Market is live as long as it makes such extreme moves.

1. You have no control over price. But you can control your loss. Do diligently what is in your control. If you fail to do your part of work, you will slip into praying mode. Market is merciless on such persons and it will push you until your trading account evaporates.

2. 95% of traders fail in trading. 4% are just breakeven traders. Just 1% traders are profitable. There is one glaring difference between 99% and 1% traders. 100% of traders after some initial or big losses, draw an exemplary trading plan and decide to execute that plan with precision and discipline. The reality is that only 1% of traders really implement their drawn plan with utmost discipline. Plan execution requires lot of discipline and great efforts.

3. Lot of money can be made from markets. But how much we deserve. My dream was to make Rs.10 lakhs per month using OTM options with initial investment of Rs.1 lakh. As long as my focus was on lot of money I never made money even with some lucky trades. When I shifted my focus from lot of money to little bit of money ie Rs.500 to Rs.2000, I started turning my odds in my favour. So, I deserve only that much from markets may probably be because my efforts or my mindset can absorb that much.

4. Money is made only when you exit the trade but not when you enter the trade. Obviously the entry is the easiest part and there is no money with entries. Money is made or lost when you exit. Enter a trade only after deciding where you want to exit first. If you fail in this, you will enter praying or hoping mode which is disastrous for traders' trading accounts.

...........i will jot down some more points whenever i strike at them.


Active Member
I will write this and keep updating not just for fellow traders but also for me:

1. Honesty and Original Work:

You can not copy someone else's method and make it profitable for you. You have to find trading system which is right for you and your personality and it is different for different people.

2. 3Ms of trading:

Mind,Money, Method - Need all the three to make it to this business.

3. Preparation:

The actual hard work is needed when markets are closed for trading. At trading hours, no work is needed. Not much!!.. Just place orders.

4. Trap of trading:

It is the only profession in the world where an absolute beginner has 50% chance of success. Therefore it is easier to start believing that you can be a trader and much more difficult to trust that you could be a pilot or doctor or scientist in short span of time. This is the trap many people fall into believing and started overestimating their potential of success at it.

5. Don't try to make money:

It is a binary game. Either you make money or lose, broadly speaking. I have always focused on not losing. I believe it is a great approach. I hate losing money. Many say , you have to be comfortable in booking small losses. It is true. You have to believe that loss is the cost of the business and its not loss. Occasional losses are proof that you r a profitable trader. It is the path of being consistently successful.

I can write many more like this but stopping here since 5 is the limit. :)

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