* Trend is your friend - Not just a friend but wife...go against her and your peace is gone!!!
* Only have that much of money on the table which you can afford to lose - better become rich a bit late than never!
* Stop loss- when things go wrong beyond your expectations, there is something wrong which you don't know...losing big on the stop loss side is not cool! Stop loss is like a life jacket...wear it and swim the trade fearlessly.
* Keep emotions out- just keep emotions out.
* Think as if u are trading for someone else - u have to give reasons to him for every trade u made. This will encourage u more to follow ur trading plan
* Maintain a diary wherein "write 2 lines about why u r buying (or shorting)every stock u buy (or short)"..... just 2 lines (because if you can't explain in 2 lines, the reason is likely to be lousy. the reasons can be anything - like 1)it is in the oversold territory , or 2) it has been recommended by so and so reputed analyst, etc. etc.........................this will help in 2 ways...first, u won't buy just on hunch/gut feeling...u will buy for a solid reason...when u r writing the reason, u might see the flaw in the trade..........secondly, you will trade more confidently....i got this idea from an interview i saw on bloomberg utv.
* Buy on Support, Sell at Resistance; Buy the sun, Sell the rain! Buy at cannons, sell on trumpets! Buy on rumours, Sell on news!
* The longer a pattern takes to form, the longer the new trend is likely to last. Previous trend is in force until proven otherwise.
* Biggest winners are those who take the risks (studied risks with strict stop losses).
* Have a trading system/rules, implement them blindly and ruthlessly and without questions or emotions, cut loss small, increase profit to max, keep positions small, keep improving your method
* It's not about money, honey! = more than the money gained or lost, what's important is the victory or loss of the method you used in that trade
* Price has memory. What happened the last time a stock hit a certain level? Chances are it will happen again.
* Profit and discomfort stand side by side. Find the setup that scares you the most. That’s the one you need to trade. Don’t expect it to feel good until you take your profit. If it did, everyone else would be trading it. Wisdom from the East: What at first brings pleasure in the end gives only pain, but what at first causes pain ends up in great pleasure. One word of caution : use strict but intelligent stop loss.
* Stand apart from the crowd at all times. Trade ahead, behind or contrary to the crowd. Be the first in and out of the profit door. Your job is to take their money before they take yours. Be ready to pounce on ill-advised decisions, poor judgment and bad timing. Your success depends on the misfortune of others.
* Buy the first pullback from a new high. Sell the first pullback from a new low. Trends often test the last support/resistance before taking off. Trade with the crowd that missed the boat the first time around.
* Short rallies, not sell-offs.
* Control risk before seeking reward. Attention to profit is a sign of immaturity, while attention to loss is a sign of experience. The markets have no intention of offering money to those who do not earn it.
* Big losses rarely come without warning.
* Bulls live above the 200-day moving average, bears live below.
* Perfect patterns carry the greatest risk for failure. Market mechanics work to defeat the majority when everyone sees the same thing at the same time. When perfection appears, look for the failure signal. the obvious is obviously wrong.
* Trends rarely turn on a dime. Reversals build slowly. Investors are as stubborn as mules and take a lot of pain before they admit defeat.
* Have a life outside the market- you know what i mean! Market is not everything. There is life outside the market also. Markets are for life not the reverse...
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