“Tips – Saving yourself from not loosing money in Stock Markets”

2. Failing to hear the market’s message: One should try to hear the message of the markets and then confirm it with charts. Watch if the markets are able to hold on to a certain level or not. This technique is Tape watching, if the markets are choppy and oscillate in a small range then, market’s message is to keep out.
3. Ignoring the phase of the market: It’s important to know the phase of the market i.e. weather it is trending or trading phase. You need to be extremely flexible in changing positions and trying to develop a feel for the market. This feel is then backed by the various technical charts in confirming the phase of the market. Undisciplined marketers driven by ego, often ignore the phase the market is in.
4. Failing to reduce the position size when warranted: Marketer should be flexible in reducing their position size whenever the market is not giving the clear signals. Book your profits from time to time.
5. Failing to treat every trade as just another trade: The risk should not be increased unless your account equity grows enough to service that risk. Undisciplined marketers often think that a particular situation is sure to give profits and sometimes take risk several times their normal levels. This can some day lead to a heavy crisis in things does not go your way. Every trade should be done for normal profits and not supernormal earnings should be expected.
6. Over eagerness in booking profits: If at all profit booking is to be done then, and then it should be done in stages, always keeping some position open to take advantage of the rest of the move. Remember trading should be done for small profits and losses.
Its boring to do nothing once a position is taken but the maturity of the trade is known not by the number of trade he make but the amount of time he sits on the profitable trades and hence the quantum of profits he generates.
7. Trading for emotional highs: Market trading is an expensive place to get emotional excitement or to be treated as an adventure sports.
8. Failing to realize that trading decisions are not about consensus building: Since childhood we have been taught to take decisions with consensus or consult people whenever take a decision and do what the majority thinks its right. The truth is that the market will not do what the majority will think is right.
One should definitely talk about the methodology then what the other trader thinks about the market. Traders should constantly try to improve their trading skills and but trading skills it means not only charting skills but also position, size, and money management. Successful traders recognize that money cannot be made equally easily all the time in the market. They back off for a while if the market is too volatile or choppy.
KUNAL BHASIN
Labels: INVESTMENT PLANNING
3 Comments:
Kya baat hai Kunal saab....Chaa gaye ho !
Aap Ki Dua hai...
sacchi me cha gaye kunal bhai. This is jak .I have heard on moneycontrol somebody saying that one shouldnt participate in trading in the first and last half hour.Is that true.I think they were day trades.Is that true.
One more thing can you please tell me how you got backlink from Moneycontrol.com . I was searching for backlinks which moneycontrol.com has got and yours was on the first page. How did you do that.
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