Technical Analysis Of TCS :
Short TCS For A Target Of 2160. Stoploss At Your Own Risk Levels.
Short TCS For A Target Of 2160. Stoploss At Your Own Risk Levels.
on Sunday, September 18, 2016
Failure is the highway to success. Tom Watson Sr. said, “If you want to succeed, double your failure rate.” If you study history, you will find that all stories of success are also stories of great failures. But people don’t see the failures. They only see one side of the picture and they say that person got lucky: “He must have been at the right place at the right time.”
Let me share someone’s life history with you. This was a man who failed in business at the age of 21 ; was defeated in a legislative race at age 22; failed again in business at age 24; overcame the death of his sweetheart at age 26; had a nervous breakdown at age 27; lost a congressional race at age 34; lost a senatorial race at age 45; failed in an effort to become vice-president at age 47; lost a senatorial race at age 49; and was elected president of the United States at age 52.
This man was Abraham Lincoln.
Would you call him a failure? He could have quit. But to Lincoln, defeat was a detour and not a dead end.
Would you call him a failure? He could have quit. But to Lincoln, defeat was a detour and not a dead end.
In 1913, Lee De Forest, inventor of the triodes tube, was charged by the district attorney for using fraudulent means to mislead the public into buying stocks of his company by claiming that he could transmit the human voice across the Atlantic. He was publicly humiliated. Can you imagine where we would be without his invention?
A New York Times editorial on December 10, 1903, questioned the wisdom of the Wright Brothers who were trying to invent a machine, heavier than air, that would fly. One week later, at Kitty Hawk, the Wright Brothers took their famous flight.
Colonel Sanders, at age 65, with a beat-up car and a $100 check from Social Security, realized he had to do something. He remembered his mother’s recipe and went out selling. How many doors did he have to knock on before he got his first order? It is estimated that he had knocked on more than a thousand doors before he got his first order. How many of us quit after three tries, ten tries, a hundred tries, and then we say we tried as hard as we could?
As a young cartoonist, Walt Disney faced many rejections from newspaper editors, who said he had no talent. One day a minister at a church hired him to draw some cartoons. Disney was working out of a small mouse infested shed near the church. After seeing a small mouse, he was inspired. That was the start of Mickey Mouse.
Successful people don’t do great things, they only do small things in a great way.
One day a partially deaf four year old kid came home with a note in his pocket from his teacher, “Your Tommy is too stupid to learn, get him out of the school.” His mother read the note and answered, “My Tommy is not stupid to learn, I will teach him myself.” And that Tommy grew up to be the great Thomas Edison. Thomas Edison had only three months of formal schooling and he was partially deaf.
Henry Ford forgot to put the reverse gear in the first car he made.
Do you consider these people failures? They succeeded in spite of problems, not in the absence of them. But to the outside world, it appears as though they just got lucky.
All success stories are stories of great failures. The only difference is that every time they failed, they bounced back. This is called failing forward, rather than backward. You learn and move forward. Learn from your failure and keep moving.
Below are more examples of the failures of successful people:
1. Thomas Edison failed approximately 10,000 times while he was working on the light bulb.
2. Henry Ford was broke at the age of 40.
3. Lee Iacocca was fired by Henry Ford II at the age of 54.
4. Young Beethoven was told that he had no talent for music, but he gave some of the best music to the world.
on Tuesday, July 19, 2016
Technical Analysis Of Ashok Leyland :
Short Ashok Leyland For A Target Of 87. Stoploss At Your Own Risk Levels.
Short Ashok Leyland For A Target Of 87. Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Monday, July 18, 2016
Technical Analysis Of Suntv:
Short Suntv For A Target Of 339. Stoploss @ 420.
Short Suntv For A Target Of 339. Stoploss @ 420.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Sunday, July 10, 2016
Technical Analysis Of Nifty50 :
Buy Nifty50 For A Target Of 8630. Stoploss At 8250.
Buy Nifty50 For A Target Of 8630. Stoploss At 8250.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Wednesday, July 6, 2016
Sell Ambuja Cem Fut @ 254 Tgt 250 Sl of 255.5
Sell Arvind Fut @ 337 Tgt Of 334 Sl 339.
Sell AxisBank Fut @ 538 Tgt Of 532 Sl 540.
Sell Dabur Fut @ 310.6 Tgt 306 Sl 311.
Sell Hindunilvr Fut Below 890 Tgt 880 Sl 899.
Buy KSCL Fut @447 Tgt 450 Sl 444.
Sell M&MFIN Fut @350 Tgt 344.7 Sl 353.4
Sell Petronet Fut @ 297 Tgt 292.5 Sl 299.
Sell RELINFRA Fut @ 571 Tgt 564 Sl 573.
Buy Ultracemco Fut @ 3396 Tgt 3426 Sl 3379.
Sell Arvind Fut @ 337 Tgt Of 334 Sl 339.
Sell AxisBank Fut @ 538 Tgt Of 532 Sl 540.
Sell Dabur Fut @ 310.6 Tgt 306 Sl 311.
Sell Hindunilvr Fut Below 890 Tgt 880 Sl 899.
Buy KSCL Fut @447 Tgt 450 Sl 444.
Sell M&MFIN Fut @350 Tgt 344.7 Sl 353.4
Sell Petronet Fut @ 297 Tgt 292.5 Sl 299.
Sell RELINFRA Fut @ 571 Tgt 564 Sl 573.
Buy Ultracemco Fut @ 3396 Tgt 3426 Sl 3379.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Monday, July 4, 2016
Technical Analysis Of ITC :
Short ITC For A Target Of 215. Stoploss At Your Own Risk Levels.
Short ITC For A Target Of 215. Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Tuesday, June 21, 2016
Technical Analysis Of AJANTPHARM :
Short Ajantpharm For A Target Of 1336. Stoploss at Your Own Risk Levels.
Short Ajantpharm For A Target Of 1336. Stoploss at Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Thursday, June 16, 2016
Technical Analysis Of PTC:
Buy PTC For A Target Of 84. Stoploss At Your Own Risk Levels.
Buy PTC For A Target Of 84. Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Wednesday, June 15, 2016
Technical Analysis Of MARUTI :
Buy MARUTI For A Target Of 4450+. Stoploss At Your Own Risk Levels.
Buy MARUTI For A Target Of 4450+. Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Tuesday, June 14, 2016
Technical Analysis Of IFCI:
Buy IFCI For A Target Of 28+. Stoploss At Your Own Risk Levels.
Buy IFCI For A Target Of 28+. Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Wednesday, June 1, 2016
Technical Analysis Of Divi's Lab:
Buy Divis Lab For A Taraget Of 1210+. Stoploss At Your Own Risk Levels.
Buy Divis Lab For A Taraget Of 1210+. Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Monday, May 30, 2016
Technical Analysis Of Granules:
Buy Granules For A Target Of 160+.Stoploss At Your Own Risk Levels.
Buy Granules For A Target Of 160+.Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Sunday, May 29, 2016
Technical Analysis Of Reliance Industries:
Buy Reliance Industries For A Target Of 1030+. Stoploss At Your Own Risk Levels.
Buy Reliance Industries For A Target Of 1030+. Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Sunday, May 15, 2016
Iron condors are delta-neutral positions that involve a bearish call spread and a bullish put spread. Two vertical credit spreads as they are called. In this the gain is limited and the loss is limited too.
When you look at it, you will see that the loss is greater than the expected profit. This is quite remarkable because in trading you are asked to keep your losses small and profits large. This is good advice but in an iron condor, the risk is worth it because the probability of success is very high – above 80 percent.
Again, the question that arises is when to close these positions, or in another words, how much profit to take out? Obviously, you do not want to wait till expiry, an idea which has become fairly established through earlier posts.
Here are a a few points you may find useful:
- Try to get out before 10 days, because a rising gamma can cause losses. Gamma is rate of change of delta and increases tremendously in the last week of expiry.
- Take out the positions if you have more than 25 percent of maximum expected profits from the trade.
- Iron condors are 80 percent probability trades, which means there is an 80 percent chance of it remaining out of money or succeeding for you. In comparison, buying options is chance i.e. 33% probability trades and buying stocks 50 percent probability.
- Some traders use a strategy where they trade 60-day iron condors and exit 30 days in advance, taking advantage of time value decay.
- When trading iron condors, stick with index options because they do not have huge volatility that individual stocks do.
- Avoid the months before quarterly or annual results as these are months of high volatility It may be useful to do long strangles and straddles due to anticipated volatility.
- The maximum profit of iron condors is the initial premium that one collects.
- Terms to fall in love with: Standard Deviation, High Probability, Vega, Theta.
- Volatility is nothing but a one standard deviation expected move in any direction.
on Sunday, May 1, 2016
Technical Analysis Of ABFRL :
Buy ABFRL For A Target Of 162+. Stoploss At Your Own Risk Levels.
Buy ABFRL For A Target Of 162+. Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Sunday, April 10, 2016
Technical Analysis Of Reliance Industries:
Sell Reliance For A Target Of 965. Stoploss At Your Own Risk Levels.
Sell Reliance For A Target Of 965. Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Friday, April 8, 2016
Trading Psychology 2.0 is based on four major themes: Adapting to changing markets; Building strengths; Cultivating creativity; and Developing best practices and processes. Here are fifteen interesting quotes from the book:
1. Discipline, while necessary for success, is never sufficient. Discipline does not substitute for skill, talent, and insight. Strict, disciplined adherence to mediocre plans can only lock in mediocre results. If it were otherwise, there would be no losing automated trading systems.
2. It is not enough to find an “edge” in financial markets; as any tech entrepreneur can attest, competitive advantages are perishable commodities. Those who sustain success continually renew themselves, uncovering fresh sources of competitive advantage. That requires processes for assessing and challenging our most basic assumptions and practices. It takes a good trader to create success, a great one to recreate it. Nothing is quite as difficult— and rewarding— as letting go of what once worked, returning to the humble status of student, and arising phoenix-like from performance ashes.
3. This productivity is readily apparent on a day-to-day, week-to-week basis: The greats simply get more done than their colleagues. They organize their time and prioritize their activities so that they are both efficient (get a lot done per unit of time) and effective (get the right things done). How much time do we typically waste as traders, staring unthinkingly at screens, chatting with people who offer little insight, and reading low-priority/ information-poor emails and reports? The successful traders invariably are workhorses, not showhorses: They get their hands dirty rooting through data and make active use of well-cultivated information networks.
4. Successful traders I’ve known work as hard on themselves as on markets. They develop routines for keeping themselves in ideal states for making trading decisions, often by optimizing their lives outside of markets.
5. This, for me as a psychologist, has been one of the greatest surprises working with professional money managers: The majority of traders fail, not because they lack needed psychological resources but because they cannot adapt to what Victor Niederhoffer refers to as “ever-changing cycles.” Their frustration is a result of their rigid trading, not the primary cause. No psychological exercises, in and of themselves, will turn business around for the big-box retailer that fails to adapt to online shopping or the gaming company that ignores virtual reality. The discipline of sticking to one’s knitting is destined for failure if it is not accompanied by equally rigorous processes that ensure adaptive change.
6. Routine is necessary for efficiency; breaking routine is necessary for adaptation.
7. We often refer to trading as if it’s a single activity. Trading, however, is like medicine: a broad set of activities and specialties. A psychiatrist is a physician; so is a surgeon, and so is a radiologist. The skills required for each are very different. So it is in financial markets. Market making is very different from global macro portfolio management— and both are quite different from the trading of options volatility.
8. In an important sense, people never change: Instead, they find fresh ways to express the core motivations that define their life themes. Solution-focused coaching works to the degree that it catalyzes those fresh expressions of who we already are.
9. We commonly hear portfolio managers worry about “style drift.” But it is precisely style that must drift if we’re to adapt to markets. It is substance— the essence of our core motivations— that must remain intact.
10.Discipline is great for doing more of what works. When the status quo no longer works, however, adaptability becomes the new discipline.
11. Skilled traders I have worked with have similarly been different traders in different markets. Will they express their views through currency markets or fixed income? Will they hold for a longer-term move or tactically take profits to benefit from market chop? The good traders find multiple ways to win. How different that is from the newbie whose decision making is limited to a few mechanical chart “setups”!
12. If we were to investigate the daily P& L of an emotionally intelligent trader, we would find occasions of trading actively and occasions of standing back. We would see periods of high-risk taking and periods of caution. All markets are not created equal: Some bring more opportunity, some less. The self-aware trader knows when “it’s my market” and goes into opportunity-seeking mode. That same trader knows when “it’s not my market” and preserves capital.
13. A small win is a small mirror. It reflects a winning image to us. Accumulate enough small wins and that winning image starts to become familiar. We internalize that which we experience repeatedly. That’s one of the reasons positive emotional experience is important….People I’ve known who are particularly adaptive have made small wins a habit pattern. They undertake many new challenges and regularly define meaningful, doable goals. They set themselves up for success. Positivity becomes a habit, a lifestyle, making the whole issue of discipline moot.
14. Perfectionism drains energy. It does not inspire performance; it turns inspired performance into something “not good enough.” The idea of small wins means that your focus should not be on perfection, but on improvement.
15. Many of our actions in the heat of battle are more biologically than logically driven.
on Sunday, March 13, 2016
Technical Analysis Of Nfty50:
Buy Nifty For A Target Of 7701+. Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
Fundamental analysis is Greek to many people but it’s the strong base on which a stock should be Bought. There have been many ways to analyze stocks like discounting cash flow or Dividend growth model or the market multiples model(earnings, sales, book value)
Analyzing stocks requires a lot of digging but I have created a small checklist for beginners which could help them self sufficient and take their own decisions.
So here is how you should go
1) There are two types of analysis- Top down and Bottom up
Top down means that first you shortlist the industry first, then you analyze lots of stocks from that particular industry and then final on a particular stock.
Bottom up is you pick the stock on a standalone basis and don’t do an industry analysis. Even if the industry is not doing well, you don’t care as you have picked the stock standalone on basis of its strong fundamentals.
You can choose whatever you are comfortable with but I will explain these in greater details in my later posts.
2) Stock markets have been built on two types of Investors or rather two thought of schools, one is called as value investors whereas the others are called as Growth investors. Yes Growth and Value , these are the two strong pillars on which everything works. So these are two criteria’s later which we will speak about in the post, and also what all ratios one should analyze in this huge world of ratios. I always prefer growth rather then value, but Growth plus Value together is Soney pe Suhaga.
3)What I have observed is people buy stocks just because they want to buy them or just matching someone or following someone blindly. There has to be certain triggers to buy a stock, this triggers could be:-
a) Reduced raw material prices(in this scenario cos having crude and metals as their raw materials benefitted). Reduced prices of raw materials will reduce the expenses and give a boost to operating profits and margins. Since cost of goods consumed is a major portion of the expenses, one should consider this as a strong reason
b) Expansion in capacities- This is an indication that company is growing and one could get increased sales and profits by some time( The imp point is to check how the expansion was funded, debt or equity or a combination of both).
c) Promoter adding aggressively- Who knows better then the owner of the company that how a company is going to perform. I have generally seen promoters buying in a co before the best is to come and aggressive promoter buying is one thing which makes me deep dig about the co and gives me confidence.
d) Quarterly results- Quarterly results are a great trigger and I have observed it is possible to make decent profits after buying after great results. But there is a catch here as well which is Valuations and prior rally. If the valuations are high and there is a prior rally as well, it means that the good quarterly results are already discounted in price.
e) Change in Govt policies- These could be also a trigger which one could look for. Recent news was Anti-Dumping duty from Bangaldesh jute products which started a new bull run in the Jute sector. So the role of an investor is to anticipate events or understands news and their significance before others do.
f) Exchange rate- This is a very common thing now which is known by most of the people. So whenever Dollar is getting high, its best to keep exporters in your portfolio who would benefit from Dollar rise and plan and construct your portfolio in a way that 70-80% of your portfolio is in exporters so your portfolio gets hedged against rising dollar and falling markets.
g) Macros- Tracking Macros of our country as well Macros of other countries is important. You should be aware of all happenings around you. Like recently China devalued its currency as it was slowing down so one should have avoided sectors/companies which export to China as it would effect them adversely. Also since China devalued its currency, its currency would become cheaper and so would the goods it produced would get more cheaper and attractive in the International markets vis a vis other goods, so in this scenario its best to avoid companies whose goods directly compete with Chinese goods.
Also one could have avoided Banking sector because RBI was issuing new banking licenses and there would be more competition in the banking sector, leading to lesser profitability in future. So one not only has to listen to news but also understand them well and its implications.
h) Fundamental screener- A stock would certainly catch my eye if it has a very good profit and sales growth and is low on valuations. I will give the fundamental screener in second part of my post as the post is getting too long now.
i) Interest rates- The interest rate is the rate at which Banks can lend money. Higher interest rates is used to contract(reduce) money supply in an economy by reducing borrowings. Banks certainly benefit from higher interest rates and industries like auto,housing, consumer durables, high debt industries disadvantage due to the same.
Similarly reduction in interest rates increase money supply in an economy and benefit sectors like auto, housing, consumer durables and high debt industries.
J) Tieups/ mergers- This could be another important trigger. Has the company tied up with some other company which would help the co gain a competitive advantage . Has the company tied up with a gaint of the sector? One should analyse the deal further, understand the beneficiary and then look at the company fundamentals before buying
k) Promoter issuing warrants at higher then cmp- Had recently seen this in kellton when the share was at 75 and promoters had issued warrants to themselves at 90. Promoters issuing warrants at higher price gives shareholders a belief and confidence about the future prospects of the company.
l) Change in management- It’s the management who sails the ships and its upto the management where they want to take the company. I have seen great companies with poor management resulting into lag in price. A change in management could be just the perfect thing to happen and it can be a trigger of change in fortunes of the company. A change in management will prompt me to track the company more closely.
m) New product line - A company releasing a new product line or launching its own brand, who knows it could be start of another mefa FMCG. Track the performance of the product line and the brand
All these factors cant be used on a standalone basis, they could be a potential trigger. You can not buy a share just because promoters have bought or raw material prices have reduced, you need to dig in more about the company and its financials which I will be highlighting in second part of the post.
This triggers could make me track the company but not buy the company, for buying I will have to do a detailed analysis….
But with the above post you yourself can make a watchlist for yourself
on Tuesday, March 8, 2016
Technical Analysis Of Nifty 50 :
Short Nifty For A Target Of 7252. Stoploss At Your Own Risk Levels.
Short Nifty For A Target Of 7252. Stoploss At Your Own Risk Levels.
DISCLAIMER:
Investing
and Trading in any equity,future,gold,silver,forex and crude-oil is risky. My
recommendations are technical analysis based on & conceived from charts.
The information provided is not guaranteed as to accuracy or completeness. This
is my personal view only.
Please
consult your adviser or consultant or analysts before investing and/or trading.
We assume no responsibility for any transactions undertaken by them. The author
won't be liable or responsible for any legal or financial losses made by any.
on Monday, March 7, 2016
Many traders are simply putting in hours, thinking that if they spend a lot of time around the markets, analyzing charts, reading books and studying courses their skill level will improve. "Putting in hours" is necessary when you are starting out, as there is a lot to learn. But putting in hours won't necessarily increase your profit potential. If you always do the same thing, and make the same mistakes, putting in hours will just engrain those habits even more. To improve, make repeated and deliberate choices. Here are five thing to start doing today to improve your performance.
Get Help
Have someone in your life that makes you accountable for your trading. Call them your trading referee. Lapses in discipline can happen to anyone, so having someone in your life that keeps you accountable will keep those lapses to a minimum and the mistakes less costly.
This person could be a mentor, coach or a just a friend or family member (not necessarily a trader, but it could be) who you've told your plan to and who you keep updated on your performance. Often just knowing that you need to show your trades to someone--and that those trades have to align with the strategy you told them you were following--is enough for most traders to avoid some mistakes
A chat room, forum or regular meeting with people you respect is another option. Share what you are doing, what you are struggling with and what you are having success with. Ask for feedback. Anyone can get sidetracked, so be open to being told when you've gone astray. When your own discipline and self-awareness fail, you'll have someone to help you get on track.
Choose your trading referee carefully. Choosing the wrong person can do as much harm as good.
Avoid Other's Opinions on Trades
Talking about strategies with other traders, or discussing your performance with your trading referee is fine, but avoid the opinions of others when it comes to specific trades. Trade your trading plan, your way. It doesn't matter if a trader you respect says they are going to buy when your plan says to sell. You must follow your own plan. That is only way you can see what works for you, and keep your stress levels to a minimum.
Constantly changing your mind based on what other people, the news, TV or websites say will cause stress and lead to poor performance. Even great traders have many losing trades, so trust your own plan. Avoid discussions while you are trading that could cause you to second your positions, or abandon your methods all together. You put time into researching and creating your strategy. Don't let someone's else words ruin all that work.
Practice
A strategy may seem simple on the surface, but even a simple strategy is hard to implement in live market conditions. Every day, every trend, every pullback is slightly different; nothing looks exactly the same as it did in the textbook examples. To get proficient at implementing a method, practice it, a lot. Trade it in a demo account until you consistently see profit from it.
In sports you do drills to create muscle memory, so you can instinctively act when the time is right. In fast moving market conditions, if you have practiced a strategy, you'll be able to implement your skill at the right time. If you haven't practiced, you'll likely miss the opportunity, enter too early, or make mistakes with your position sizing. Build your skill base in practice sessions, so you're not learning the hard lessons when real money is on the line.
Mental Clarity, Everyday
Each day take one minute before you trade to make sure you are feeling clearheaded, focused and present. Also take a couple seconds to reiterate that you're here to trade, not check your social media accounts, email or watch videos online. When you trade, focus on trading. Close your eyes, center your attention on your trading plan and visualize following it. Check the economic calendar to be aware of events that may move the market, so you aren't taken by surprise during the day.
These small steps can save you thousands of dollars over the course of a year. If you're angry, upset or unfocused, avoid trading. It only takes one day, one trade even, to lose an entire account when not in the right mind frame.
Take a few minutes and prepare for each day. Foster a state of mental clarity before you begin trading, and if you can't establish that mental clarity, don't trade that day.
Record Every Trade You Make
Monitor and review every trade you make. Take screenshots of your trades with entries, stop loss levels, targets, and your technical/fundamental notes so you can easily review your trades at a later time. A screenshot is worth 1000 words in a trading journal, because it shows exactly what you did in those exact market conditions.
To take a screenshot, click on the chart you want a picture of and hit Alt+PrtSc (print screen). Open any image editing software, such as Paint, and paste the screenshot. Save the file with a name in the format of day/month/year, which keeps a chronological record of all the trades you've taken.
If you're a day trader, review your trades weekly and monthly. If a longer-term trader, establish a time where you'll review your trades, such as quarterly or semi-annually. If your trades last a long time, take a screenshot at the time of the trade, and a screenshot when you get out (showing everything that happened between entry and exit).
Careful review of your trades will show what your common mistakes are--which you can deliberately work on to improve (practice)--and what you're very good at, which you could potentially capitalize on more.
The Bottom Line
Being a profitable trader takes constant work. Profitable trading is not a destination; it's only a state made possible by deliberate and practiced actions and choices. As soon as a trader stops following those deliberate and practiced actions, they will fall out of the profitable state. Having someone to keep you on track will help keep these lapses to a minimum. So will avoiding the opinion of others on particular trades. Be focused every day you trade, and if you are not don't trade that day. Finally, record everything you do, taking screenshots and keeping notes. This will give you definitive feedback you can use to continually and deliberately improve your trading methods
Subscribe to:
Posts (Atom)
