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TRY TO KNOW SOMETHING ABOUT MARKET…

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market is always rightRemember that the stock market is always right and price is the only reality in trading. In case if you want to make money in any market, you need to mirror what the market is doing. On the other hand if the market is going down and you are long, the market is right and you are wrong. Moreover if the stock market is going up and you are short, the market is right and you are wrong.

Other things being equal in stature, the longer you stay right with the stock market, the more money you will make. On the other side of the coin the longer you stay wrong with the stock market, the more money you will lose.

 

 

up-down

In general every market or stock that goes up will go down and most markets or stocks that have gone down, will go up. The general thumb rule in this regard is the more extreme the move up or down, the more extreme the movement in the opposite direction once the trend changes. This is also termed as “the trend always changes rule.“

 

 

 

 

 

looking for resone

In case if you are looking for “reasons” that stocks or markets make large directional moves, you will probably never know for certain. Since we are pretty much dealing with perception of markets-not necessarily reality, you are wasting your time looking for the many reasons markets move.

A huge blunder most investors make is assuming that stock markets are rational or that they are capable of ascertaining why markets do anything. To make a profit trading, it is only mandatory to know that markets are moving – not why they are moving. In an ideal scenario stock market winners only care about direction and duration, while market losers are obsessed with the whys.

 

 

newsStock markets normally move in advance of news or supportive fundamentals – sometimes months in advance. In case if you wait to invest until it is totally clear to you why a stock or a market is moving, you have to assume that others have done the same thing and you may be too late.

You required to get positioned before the largest directional trend move takes place. Theoretically speaking the market reaction to good or bad news in a bull market will be positive more often than not. On the other hand the market reaction to good or bad news in a bear market will be negative more often than not.

 

You will never earn Money in Stock Market if you

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You are entering a position out of EMOTIONS or ANTICIPATION at wrong price level in a WRONG scrip with GREED or HOPE with no pre-entry exit in the place – even worst, once in a trade, riding the position with HOPE without STOP LOSS even if it goes against the entry – adding more to average down in the entirely wrong trade – at last running out PATIENCE and out of FRUSTRATION booking huge LOSS.

Even the position is in PROFIT there is no STOP LOSS or pre-entry EXIT in place – exiting the position abruptly in FEAR booking just a small profit with FEAR that market may take this small profit too – these random small profits unable to compensate earlier big losses!

To cover big losses you try more and more RANDOM trades and above process continues – end result it challenges your EGO and creates more FEAR, more AGONY – cycle continues with small profits and big losses – until account is wiped off.

Market is very Risky for long Traders, Your Safe? Herein

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 NIFTY TARGETS  5568-5525 Today (Positional 5498-5391)

1  Risk is not the same as volatility. Assets can be volatile on the upside as well as the downside. Risk should instead be viewed as the permanent loss of purchasing power.

2 A risk should not be evaluated based its frequency. Some risks only have to happen once to be catastrophic.

3 Sophistication and knowledge are not a form of or substitute for risk management.

4 Although following the crowd may feel comfortable, risks are just as catastrophic whether you suffer with company or suffer alone.

5 Bullish consensus manufacturers the greatest risks because nobody is prepared and everyone runs for the exits at the same time. Strong optimistic consensus provides a sense that nothing can go wrong. This is why the greatest catastrophes seem to come out of the blue.

6 Activity, research and analysis provides a false sense of control over the future. However, devastating losses rarely due to a lack of brain power or analytical prowess.

Get free important share market ideas on stocks & nifty tips chart setups, analysis for the upcoming session, and more by joining the below link: Stock Tips

Have you any questions/feedback about this article? Please leave your queries in the comment box for answers.

Disclaimer: The information provided on this website, including but not limited to stock, commodity, and forex trading tips, technical analysis, and research reports, is solely for educational and informational purposes. It should not be considered as financial advice or a recommendation to engage in any trading activity. Trading in stocks, commodities, and forex involves substantial risks, and you should carefully consider your financial situation and consult with a professional advisor before making any trading decisions. Moneymunch.com and its authors do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any losses or damages incurred as a result of using or relying on such information. Trading in the financial markets is subject to market risks, and past performance is not indicative of future results. By accessing and using this website, you acknowledge and agree to the terms of this disclaimer.

22 Trading rules for Traders and Investors

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“I told my psychiatrist that everyone hates me. He said I was being ridiculous – everyone hasn’t met me yet.”

22 trading rules

1)  All successful traders use methods that suit their personality; You are neither Waren Buffett nor George Soros nor Jesse Livermore; Don’t assume you can trade like them.

2)  What the market does is beyond your control; Your reaction to the market, however, is not beyond your control. Indeed, its the ONLY thing you can control.

3)  To be a winner, you have to be willing to take a loss; (The Stop-Loss Breakdown)

4)  HOPE is not a word in the winning Trader’s vocabulary;

5)  When you are on a losing streak — and you will eventually find yourself on one — reduce your position size;

6)  Don’t underestimate the time it takes to succeed as a trader — it takes 10 years to become very good at anything; (There Are No Shortcuts)

7)  Trading is a vocation — not a hobby

8)  Have a business/trading plan; (Write This Down)

9)  Identify your greatest weakness, Be honest — and DEAL with it

10)  There are times when the best thing to do is nothing; Learn to recognize these times (Nothing Doing)

11)  Being a great trader is a process. It’s a race with no finish line.

12)  Other people’s opinions are meaningless to you; Make your own trading decisions
(The Wrong Crowd)

13)  Analyze your past trades. Study what happened to the stocks after you closed the position. Consider your P&L game tapes and go over them the way Vince Lombardi Bill Parcells reviewed past Superbowls

14)  Excessive leverage can knock you out of the game permanently

15)  The Best traders continue to learn — and adapt to changing conditions

16)  Don’t just stand there and let the truck roll over you

17)Being wrong is acceptable — staying wrong is unforgivable (I liked this one! –BMB)

18)  Contain your losses (Protect Your Backside)

19)  Good traders manage the downside; They don’t worry about the upside

20)  Knowing when to get out of a position is as important as when to get in

21)  To excel, you have to put in hard work

22)  Discipline, Discipline, Discipline !

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Tomorrow is too LATE for Intraday Trader

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intraday trader

Trading has many ups and downs and can easily cause us to feel defeated.

However, defeat can only be disastrous if we classify it as disastrous.

Losses, defeats, failures, etc. have been a part of history for every person who has reached high levels of success. The difference with the successful people is that they analyze the situation immediately. Those that tend to fade away are those that wait until tomorrow or maybe never to review and discover why the results were not what they expected.

To be successful we must accept every result as a part of our growth and to apply those findings today. Don’t wait until tomorrow, because tomorrow may be too late.

Understand first who you are as a trader…?

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Understand first who you are as a trader.  Do you like to daytrade?  Do you prefer swing trading?  What is your risk tolerance level?  Everyone has a unique style and situation.

As a result, what might be a great entry point for a swing trader may turn out to be a not-so-good entry for a Day trader…?  A trader with a low tolerance of risk might find that trade far too risky.

The key here is to know why you’re entering a trade, what it would take for you to exit (stop loss) and an appropriate target.  These should all be determined BEFORE you enter the position.  Many unsuccessful traders have one or two of these criteria figured out before they enter the trade.  It’s the third one that derails them.