Articles tagged with: trading discipline
Featured, Must Read Articles for traders, Trading Psychology »
Trading is always a high return high risk game and it needs nimble trading approach with tons of discipline.
Traders say its the Big traders who move the market and we end up making loss.
Well i do not buy this reasoning. The most Important part in trading is trading discipline and trading system(Throughly Backtested)
Some general reason why traders loose money
Mistake # 1: Jumping in with Both Feet
Would you perform a surgery, or fly a plane loaded with passengers without any previous training? Of course not. That would be insane.
But when it …
Must Read Articles for traders, Trading Psychology »
As 2011 come to an end let me share an important aspect of trading
Keeping losses small in order to avoid huge losses
Why is that so?
From a psychological point of view nobody wants to sell at a loss as in most situations in life making mistakes and admitting them is associated with being a loser. That’s why most people prefer sticking to a losing position. They don’t want to be labeled a loser. So they start hoping their position will turn around and end up being a huge winner. The stock …
Must Read Articles for traders, Trading Psychology »
Many people think trading is the simplest way of making money in the stock market. Far from it; I believe it is the easiest way of losing money. There is an old Wall Street adage, that “the easiest way of making a small fortune in the markets is having a large fortune.”
I discuss below eight ways of undisciplined trading which lead to losses. Guard against them, or the market will wipe you out. I am qualified to speak on this subject because I was myself an undisciplined trader for a …
FII Futures and Options Data, Must Read Articles for traders, Nifty Options Data, Technical Analysis of Nifty »
Before putting forward today’s analysis let me clarify few things. Someone blamed me for his losses in past week let me put my clarification forward for the same.
Why huge losses?
Either You have no plan or you have excellent plan but have no faith in them.
On my Site and Facebook page I will share only my “Objective views“,either you use them as a part of your trading system or trading plan or if they do not suit you ignore them.
I have always suggested a stop loss of 20 points.You need to …
Must Read Articles for traders, Trading Psychology »
A compilation of Trading Quotes which will be helpful to control your emotions during trading. Read them Daily before markets starts Belive me it will helpful in removing the mental blockade which you experience during your trading.
An avaricious or keen desire for profits is one of the most prevalent causes of failure in speculation. This weakness is general among traders. They desire “just a little more ” profit. If the stock or commodity bought advances, then that’s proof to them that it will advance further and so they hang on. …
Must Read Articles for traders, Trading Psychology »
By Robert Prechter, Jr. President and Founder of Elliott Wave International
When I first began trading, I did what many others who start out in the markets do: I developed a list of trading rules. I created the list piecemeal, with each new rule added, usually, following the conclusion of an unsuccessful trade. I continually asked myself what I would do differently next time to make sure that this mistake would not recur. Approximately six months after I completed my carved-in-stone list of 16 trading rules, I balled up the paper …
Must Read Articles for traders, Trading Psychology »
Nifty did a one way ride for Jan and Feb 2 weeks. One of the most spectacualr rally. These kinds of rallies have been coming and will be coming for next many many years. But important thing is were you part of this rally,If yes were you on right side ie. Long side.
Most of traders missed the rally or were shorting the whole rally Very few traders were able to milk this rally. What diffrent they have done.
They had Self Control and Discipline over them.
Cultivating discipline and self-control is vital …
Must Read Articles for traders »
What is gambling?
Some dictionary definitions:
the act of playing for stakes in the hope of winning (including the payment of a price for a chance to win a prize)
a: to play a game for money or property b: to bet on an uncertain outcome
to stake something on a contingency : take a chance
1) The Gambler Trades Through Earnings Reports: If you are a trader (as opposed to an investor) and decide to hold a stock/option position through earnings you are gambling. Due to the very nature of earnings reports your position …
Must Read Articles for traders, Trading Psychology »
Nifty did again the Unexpected Making everyone Bearish Today Blue Channel talking about 4600 Traders holding Bulk of Puts and Than came the U-turn and an awesome rise in 15 mins.
Traders who were short need to cover at high price or might be still holding the shorts in a HOPE of nifty coming down.(Well it can but I am a system trader and System is in up mode)
100 % traders are bearish/bullish – how can market fall now or rise? ?
For every trade to take place there must be a …
Must Read Articles for traders, Trading Psychology »
Trading is a profession which requires a person to be disciplined, control over his emotion, risk management.
90% of Traders fails in this profession only 10% excel.
So what makes trading so difficult?
I have compiled few rules which you should adhere with and read it daily when you had a bad day.
These are some of the trading rules which are universally valid for stock/commodity trading.
Take a print out and nail it on your trading desk.
Never risk more than 10% of your trading capital in a single trade:Try to distribute your trading capital …

