- Either manage your money and risk else market is not a place for you.
- Small win and big losses can’t make you rich, so cut the losses short and let the profit run.
- Two biggest enemy – greed and fear. When come in trading playground, keep the emotions outside the ground.
- Don’t predict the market direction, just flow with trend.
- Market is not the cause for my losses, it’s me who made the big losses and did’t go with the market.
- To consistently wining the game, discipline is must.
- Don’t trade for money. Trade for passion, learning patience and controlling self.
- Before entering trade, make sure it matching your criteria, not greed and while exiting the trade, make sure its not greed/fear/impulse.
- Learn everyday something new from market and note it down.
- Don’t break any of the rule. Read the rules daily before market starts.
Market Wizards – Lessons Learned
Michael Marcus
Michael Marcus learned from Ed about cut the losses sort and ride the winners. Michael learned to have patience and wait for the clearly defined position. Staying in the major trend really paid off. Never get out the trade until trend is changed. Trade with the stop loss. Michael learned from floor about intraday chart points like previous day high where he can take take big position with close stop loss. Trading was like a hobby for Micheal. When his conditions met for trade, he used to take 5-6 times of his normal positions. Big money only comes from the trade where his trade criteria met. 37
Daily Trading Checklist
- What is today’s open price? Is it below or above yesterday’s close?
- Where is market trading after 15-30 min of opening? Does it break the yesterday’s high or low? Or is it trading in previous day range?
- After market opening, does price respect the open price? Either market stays up or down from the open price.
- Look for initial 1 minute open bar range and 3 bar patterns for first trade.
- What is the VIX for the day to gauge the volatility of market?
- Where is the max open interest for the options call and put?
- What is the monthly, weekly and daily trends and High -lows for month?
- What is the put call ration?
- What is the FII and DII activity for previous day and trend?
Traders quotes for daily Motivation – Must Read
Small losing trades is the cost you pay while you are looking for the big winning trades. @SJosephBurns
“Trade what’s happening, not what you think is gonna happen.” – Doug Gregory
Stop being afraid of what could go wrong and think of what could go right. Tony Robbins
A professional trader should enjoy the process of trading rather than profits from trades.
“If you personalize losses, you can’t trade.” – Bruce Kovner
Everyone knows how to read charts. Still, consistently profitable traders are few and far between. You can’t learn a few chart patterns and call yourself a trader. You need a particular mindset. The moment you work on that, you stand out from the crowd. – @yvanbyeajee
In trading you must have the right mindset, the right risk management, and a system with an edge to make money over the long term. If any one of these are missing you will not make it. Steve Burns
There is no win or loss, only a learning experience. So, whenever you’re hesitating to put a trade on, just remember that this is a crucial piece of experience that you need to develop into the trader you wish to become. @yvanbyeajee
Most People become anxious about losses, yet successful speculators have learned that an essential ingredient to winning is to make it OK to lose. – Dr Van K Tharp
the biggest tipping point in their life has come when they started disassociating themselves from individual trade outcomes and getting emotionally detached with the outcomes.
Method and strategy is only a small part of the game. Money and mind management decides the success of a trader.
If you trade for the money you will never make it, because it will affect your mind. Trade for the 3Ps – passion, process and patience and you will get what you deserve from the market.
My Trading Plan, Rules and Learnings
Risk Management
The most important is risk management. It is the first and important part of the trading. Plan in advance that how I will manage my risk. I manage my risk by
- Add stop loss with the buy/sell order.
- Stick to the stop loss and don’t change when market going against you.
- In case of options, think in advance, how will I hedge my position and when will I close my position.
Trading Plan
Trading based on Pivot Points
- First check for the Market trend. If it is down trend then there are less changes to break resistance.
- If market is in up trend, then there are less changes for break support. In most of the cases, market may bounce back from support.
- Another factor to consider at Pivot point is RSI level. In case of over bought situation, market may go down after touching resistance.
Learning
- In Bull Market never sell and in bear market never buy.
- If you missed the trend then wait for next signal to enter.
- Do not risk more than predefined price per day, per week and per month.
- Your decision should not be influenced by external factor. Stick to your trading system.
Market Update 22-09-2019
Pre-open Market
- US Market closed in positive. Dow Jones closed .28% up.
- SGX Nifty is up 11028, 57 point up from previous close at 08:35 AM IST.
- USD INR is trading at 71.86.
- Crude is .55% up and at 62.72.