Glass is heated to above 720 degree celcius to make toughened glass.
Sometimes, it is also immersed into a bath of molten potassium nitrate to increase its toughness.
An earthen pot is subjected to heat in a kiln to bake it and make it suitable to store water.
Cast iron is first superheated and then suddenly put in cold water to harden them.
If glass or clay or steel were living things, this process is nothing less than hell for "them".
But after going thru this "hell", all these come out as if in "heaven"
Tough, Strong, Resilient....no more problem!
A new stock trader is like a glass,
he breaks every day only to gather himself up, glue together the pieces of broken ego, and put up a brave shaky face next morning.
A new stock trader is like clay,
willing to let himself/herself be moulded but not strong enough to hold the water of profit under pressure.
A new stock trader is like cast iron,
total strength from outside, but sheer brittleness from inside.
Without hardening, the new trader has no future, or a very painful one.
So, what's the process of hardening in trading?
Face and conquer the heat of greed if your system wants you to.
Face and conquer the temperature of panic if your system wants you to.
Face and survive the sudden exposure to cold water of crash if your system wants you to.
Face and withstand the the temptation of booking the profit if your system wants you to.
And finally, practice stop loss 20 times when the need arises.
Learn to say "no" to your devil side.
Take the heat treatment, get tough!
2 comments:
JMS bhai, Greetings. I request to give me clarity on the following:
Introduction about my trade set-up:
I have a trade setup which is based on Price levels arrived through an algorithm. I donot see EOD charts and my algorithm results are arrived by spreadsheet working with daily OHLC. I strictly stick to that price levels only, not considering any indicator. this is applicable for any indices / individual stocks. I use 15 min candles for entry / exit signals. Every price point in that levels are giving me entry/exit signals if 15 min candle closes above/below that. It has working fine and net net i end up positive. Hope introduction is clear.
Whipsaw: In the above set-up i faced with plenty of whipsaws. for example: today (29-06-10) statebank - 15 min candle closed above 2315 (10.30am) - i went long around 2318. But the next candle closed below 2315 - so i had to close the long and enter short. To day only one whipsaw. some time it is more than 4 too.
How to avoid whipsaws?? -- In the above set up though my stops are very near to the entry point, i was not incurring any big loss. However, since the setup is subjected to whipsaws, many time i end up paying more brokerage than my losses due to stops. So, obviously the question is how avoid such whipsaws as much as possible.
Clarification needed: Could i avoid such whipsaws with RSI on the above setup? If so, please let me understand what is the best thing to do?
Expecting your reply anxiously
Trade summary ( for total trades till now )
+
Functioning of a volume price trader ( VPT )
NEW POST DONE
please visit the following link
http://stock2gains.blogspot.com/2010/06/trade-summary-functioning-of-volume.html
also find a SAI baba bhajan as its a SAI vaar today
OM SAI RAM
thanks
regards
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