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SHOULD I CONTINUE TO TRADE ???- NITIN POTADE

Nitin Potade at 05:54 PM - Aug 12, 2011 ( ) Views: 9,025

44 57

PLEASE ASK EACH & EVERY QUESTIONS TO YOURSELF AND THINK ABOUT IT.

1)       AM I DEPENDING UPON TIPS PROVIDERS OR BROKERS FOR READYMADE TIPS & RECOMMENDATIONS?

2)      AM I READY TO TRADE IN F & O (FUTURE & OPTION)?

3)       AM I COMFORTABLE TO READ CHARTS?

4)       AM I COMFORTABLE WITH ONLINE TRADING  ? OR USING OFFLINE TRADING (CALLING BROKER TO PUT BUY/SELL ORDER)?

5)       AM I BUYING MORE QUANTITY OF SHARES IF A SHARE WHICH I AM HOLDING IS GOING DOWN ( AVERAGE AT LOWER LEVEL)?

6)      AM I KEEPING RECORDS OF TRADE WHICH I DID & REASON FOR TRADE?

7)       AM I TRADING FOR TIME PASS OR TO SHOW THAT I AM BUSY/ DOING SOMETHING?

8)       AM I TRADING BECAUSE ONE OF MY FRIENDS IS EARNING FROM SHARE MARKET?

9)       AM I BLAMING OTHERS FOR MY LOSSES?

10)    CAN I STOP TRADING THOUGH I FEEL THAT I AM UNABLE TO EARN FROM MARKET?



From: nitin potade at 12:36 PM - Sep 04, 2012( )






From: nitin potade at 09:13 PM - Nov 11, 2012( )


http://www.onefivenine.com/



From: nitin potade at 01:45 PM - Mar 10, 2013( )


 

11)    AM I CHANGING MY TRADING METHOD FREQUENTLY LIKE TRADING AS PER SIGNALS FROM MACD, THEN AS PER RSI, THEN AS PER BOLLINGER BAND ETC?

12)    AM I PUT STOP LOSS IN TRADE OR HOLD POSITION IN BIG LOSS & WAITING FOR MIRACLE?

13)  AM I DISCUSSING MY STRATEGIES OR TRADE WITH FRIENDS WHO ARE NOT INTERESTED IN HEALTHY DISCUSSION ?



From: nitin potade at 06:36 PM - Nov 16, 2014( )





(1 to 20 out of 77) - Latest Replies on Top | First | << Previous | Next >> | Last |
Nitin Potade at 07:22 AM - Mar 03, 2014 ( )

Got it from FB group...

Nitin Potade at 06:36 PM - Jan 24, 2014 ( )

I got a mail in my Inbox.  The sender wantmy help to earn from trading in market. He is in big loss and want to know whether anybody earn from share trading.

I wrote him the following reply :-

=======================================================================================

From : nitin potade at 06:26 PM - Jan 24, 2014 ( Write Message to nitin potade )
Subject: hi...

I am in profit but not always in profit. All trades in profit is impossible in real trades.  

I use data to select stocks for intraday trade and enter only at a certain level with proper stop loss for small profit.

I would like to know how you are trading ?.

Read my thread - 

http://www.mudraa.com/trading/98829/0/should-i-continue-to-trade-nitin-potade.html

I am that it is real ID and not fake ID but I am replying with a belief that it is a real ID.

If you are not comfortable with trading. Then just stop trading and stay away from it.

Earning in share market is not easy but not impossible also. Learn from you own mistake and improve your trading method. Try to learn about Investor Psychology.

Thanks & regards.

Nitin.

Nitin Potade at 06:31 PM - Jan 24, 2014 ( )

I got a mail in my Inbox.  The sender wantmy help to earn from trading in market. He is in big loss and want to know whether anybody earn from share trading.

I wrong him the following reply :-

From : nitin potade at 06:26 PM - Jan 24, 2014 ( Write Message to nitin potade )
Subject: hi...

I am in profit but not always in profit. All trades in profit is impossible in real trades.  

I use data to select stocks for intraday trade and enter only at a certain level with proper stop loss for small profit.

I would like to know how you are trading ?.

Read my thread - 

http://www.mudraa.com/trading/98829/0/should-i-continue-to-trade-nitin-potade.html

I am that it is real ID and not fake ID but I am replying with a belief that it is a real ID.

If you are not comfortable with trading. Then just stop trading and stay away from it.

Earning in share market is not easy but not impossible also. Learn from you own mistake and improve your trading method. Try to learn about Investor Psychology.

Thanks & regards.

Nitin.

Nitin Potade at 06:53 AM - Dec 19, 2013 ( )
From : Gireesh Babu at 06:38 PM - Jun 15, 2013 6 months ago )

TRADERS MUST READ

===============================================

Thanks Gireesh ji...

Manoj Kumar at 06:00 AM - Oct 08, 2013 ( )

add another...13 point

iam i searching internet for ready made systems... without knowing and showing any interest in learning technical analysis

Vinayak S at 09:23 AM - Oct 06, 2013 ( )

Just ask yourself daily ?? Am i More diciplined and patience today than yesterday... If yes continue trading if no take break.

Nitin Potade at 05:36 AM - Oct 06, 2013 ( )

http://www.mudraa.com/trading/87668/0/day-trading-part-2.html

Day Trading:- Part - 2

From : Sunil Rao at 12:08 PM - May 01, 2011

 

1.Realize the concept – There is no way on earth that any individual will turn out to be a successful day trader with out in fact knowing the principle. That implies, if you want to make a sensible quantity trading, you’ll have to educate yourself. Now, what far better way to do that than to understand very acclaimed publications by top authors in the area? A single of this kind of is by Larry Williams titled “Day Trade Futures Online”. An even better way to examine free of charge on the internet content such as this.

 

2.Fixed yourself a objective – Educating by yourself alone won’t make you a profitable day trader. You need to know your ambitions – i.e. what you want to achieve as a day trader – is if economic stability, or just sufficient to see accomplish your dreams? This will set you on course for accomplishment.

 

3.Open up Accounts – With day trading, especially online, you have to have an account to make your existence less complicated as you can do it from the comfort and ease of your property, at any time you experience like it. A great position to open one this kind of accounts is XE.com and CMC Markets

 

4.Commence investing – Assuming you have completed all the above, it’s now time to analyze the waters to see what occurs. Start by investing quite tiny then develop on it from there.

 

5.Analyse your Progress – This step is self explanatory; simply evaluate what you’ve performed so far to see if it is major you to the goals you fixed earlier.

 

6.Make Modifications if necessary to increase your profit – If after assessing oneself you don’t see much development, you might want to go back again to the drawing board to see what you’ve performed incorrect. On the other hand, if you’re producing money, retain performing what you are doing but invest a lot more if you sense secure enough and make tweaks to enhance your earning – don’t get too greedy although.

 

7.Persist till you win due to the fact persistence wins the game. If right after attempting you nonetheless don’t see the money coming in, continue to keep doing work difficult and if you retain on prolonged adequate, you’ll see good results coming in.

 

8.Uncover individuals with the very same attention or join on the web networks or forums. The saying “two heads are much better than one” plays right here. If you can hyperlink your self up with individuals with equivalent curiosity, your finding out method will be a lot less difficult and you’ll have a person – if not much more – to operate to if points aren’t doing work.

 

9.Remember to stay active – Like almost everything else these days, day trading systems are continually adjusting and that signifies you could get rid of out if you snooze after you get began. This implies, the rate at which points are modifying could see you proceeding again to the extremely starting once again if you consider any time off.

 

10. Rinse and repeat – The last action in this “10 tips for the day trader” post is simple : do all of the over over and above if you’re seeing income.

 

Source: www


Nitin Potade at 05:34 AM - Oct 06, 2013 ( )

http://www.mudraa.com/trading/87659/0/day-trading.html

DAY TRADING

From : Sunil Rao at 10:27 AM - May 01, 2011

1. Study the fundamentals of the system like the functioning of the market, schedule to buy and sell, which way the stocks will be operate, and the long and short calls.You consider also learn to take care of the profits while cutting down the losses.

2. In view of excel in day trading is a time consuming process, apply the trading platform available on the trading websites before you actually start.

3. Avoid the thought of making losses let you to scare. Use strategies like stop orders to reduce your losses.

4. Do not worry, If you suffer some loss, as it is a portion of the process.

5. Stop trading, once you have earned your expected profit. Do not hunger after more money and throw away your profit.

6. Assuming that the market does not meet your expectations on each and every particular day, do not trade.

7. During the time that your experience in day trading increases, you gain the ability to foreknow the direction in which the stock price moves. But avoid to go for the lowermost or the topmost stocks.

8. If you find it crucial to decide in which way the market is going, do not trade but just pause and wait.

9. Keep up a record of the results of the day trading. It give permission you to learn the things which are effective, as well as ineffective.

10. Acquire some information about buying and selling tactics of successful day traders. These traders mentality commonly sell when there is good news and buy when there is bad news.

11. Being aloof and professional is the main characteristics of being trader and don’t be emotional.

12. Have confidence on your instincts as rely upon excessively on the analysis means skipping some good trading chances.

13. Be trained and use most important strategies to trade.

14. Concentrate and/or focus yourself only on a selected stocks. Sharpen your attention on various stocks will make it difficult for you to track the movement of each stock.

15. You Are Smart, Buyers and Sellers both think that they are smart :)

Nitin Potade at 11:01 AM - Sep 28, 2013 ( )

 

PLEASE BOOK MARK THIS THREAD AND READ IT IN YOUR SPARE TIME TO KNOW ABOUT VARIOUS TRADING STRATEGIES, OPTION TRADING ETC.

YOU WIL FIND MANY GOOD INFORMATIVE THREADS BY MEMBERS WHO ARE NOT ACTIVE ON MUDRAA NOW OR WERE BANNED FOR FOR SOME REASON.

THREADS BY HEMANT PRABHAKARA K, SHYAM THAPA, HIREN THAKRAR, ASKAR A, SAINATH & HEMANTH PARIKH.

Nitin Potade at 10:42 AM - Sep 28, 2013 ( )

http://www.mudraa.com/trading/179143/0/gap-trading-strategies-vimalraj.html

Gap Trading Strategies [VIMALRAJ]

 

Gap trading strategy is quite simple and can be applied to weekly, daily or intraday gaps. When you find a stock that has a price gap from the previous close, you should watch the first hour of trading to identify the trading range. Rising above that range signals a buy, and falling below it signals a short. In order to successfully trade gapping stocks, you should use a disciplined set of entry and exit rules to signal trades and minimize risk - gap trading rules.

 

There are eight gap trading strategies defined by full or partial gap, gap up or gap down and price range in the first hour of trading. We have categorized them in long and short gap trading strategies and sorted them by their power - the strongest ones with the highest potential/risk ratio are presented the first - full gaps are more powerful than partial and trading in the direction of gap is less risky than trading contrarian gap trend. When reading the setups, you will see the term 'Tick', which is defined as the bid/ask spread and is different from stock to stock.

 


 

"Long" Gap Trading Strategies

 

Gap Trading - Full Gap Up: Long

 

Full Gap Up: Long

 

If a stock's opening price is greater than yesterday's high and after one hour of trading the price is still above opening gap price (green candle), set a long (buy) stop order two ticks above the high achieved in the first hour of trading.

 


 

Gap Trading - Partial Gap Up: Long

 

Partial Gap Up: Long

 

If a stock's opening price is greater than yesterday's close, but not greater than yesterday's high, and after one hour of trading the price is still above opening gap price (green candle), set a long (buy) stop order two ticks above the high achieved in the first hour of trading.

 


 

Gap Trading - Partial Gap Down: Long

 

Partial Gap Down: Long

 

If a stock's opening price is less than yesterday's close, but not lower than yesterday's low, and after one hour of trading the price is above opening gap price (green candle), set a long (buy) stop order two ticks above the high achieved in the first hour of trading.

 

Gap Trading - Full Gap Down: Long

 


 

Full Gap Down: Long

 

If a stock's opening price is less than yesterday's low and after one hour of trading the price is above opening gap price (green candle), set a long (buy) stop order two ticks above the high achieved in the first hour of trading.

 


 

"Short" Gap Trading Strategies

 

Gap Trading - Full Gap Down: Short

 


 

Full Gap Down: Short

 

If a stock's opening price is less than yesterday's low and after one hour of trading the price is still below opening gap price (red candle), set a short (sell) stop order equal to two ticks below the low achieved in the first hour of trading.

 

Gap Trading - Partial Gap Down: Short

 


 

Partial Gap Down: Short

 

If a stock's opening price is lower than yesterday's close, but not lower than yesterday's low, and after one hour of trading the price is still below opening gap price (red candle), set a short (sell) stop order two ticks below the low achieved in the first hour of trading.

 

Gap Trading - Partial Gap Up: Short

 


 

Partial Gap Up: Short

 

If a stock's opening price is greater than yesterday's close, but not greater than yesterday's high, and after one hour of trading the price is below opening gap price (red candle), set a short (sell) stop order two ticks below the low achieved in the first hour of trading.

 

Gap Trading - Full Gap Up: Short



From: vimal raj at 07:01 AM - Jul 21, 20132 months ago )



Gap Trading - Partial Gap Down: Short

 

Partial Gap Down: Short

 

If a stock's opening price is lower than yesterday's close, but not lower than yesterday's low, and after one hour of trading the price is still below opening gap price (red candle), set a short (sell) stop order two ticks below the low achieved in the first hour of trading.


Nitin Potade at 09:58 AM - Sep 28, 2013 ( )

http://www.mudraa.com/trading/181793/0/trade-with-trend-lines-vimalraj.html

TRADE WITH TREND LINES [VIMALRAJ]

 

TRADE WITH TREND LINES

 

How to draw trendline

 

 

-----------------------------------------------------------------------------

 

LONG Swing Entry Trade Setup

 

 

--------------------------------------------------------

 

SHORT Swing Entry Trade Setup

 

 



Nitin Potade at 09:56 AM - Sep 28, 2013 ( )

http://www.mudraa.com/singlepost.php?messid=150041

STIRRUP PATTERN TRADING [ VIMALRAJ ]

 

STIRRUP PATTERN TRADING
By Daryl Guppy

 


We first observed and analysed this trading pattern in late 2003 and 2004. In recent 
weeks it has reappeared and it develops in the same way. There is one important difference in 
the 2012 iteration. The long term measurement of the stirrup pattern is no longer quite as 
reliable. In 2003/2004 it was around 65% reliable. Now we find the pattern does not go on to 
fully develop so traders need to manage the breakout with an ATR or CBL volatility based stop 
loss. However the stirrup pattern remains a reliable indicator of a substantial and sustained 
breakout.

 


One of the challenges in fast moving momentum stocks is to decide how to handle the 
inevitable pullbacks. Traders who hold open positions in the stock use these pullbacks, or price 
retreats to take profits. Typically they apply some variation of a trailing stop loss technique to 
achieve this. Many other traders watch these rising stocks with dismay, regretting they had not 
purchased them earlier. When prices do start to collapse, these traders are alert for an 
opportunity to buy the retreat in anticipation of a rebound.

 


Rebound trade opportunities include finger trades where prices drop rapidly, then 
recover quickly and reach a high equal to the previous high. These are very short term 
opportunities. Some traders use a Fibonacci approach, buying retracements at particular 
percentage values. Their objective is to ride a resumption of the trend, but they have no firm 
idea of how far the new trend might go.

 


We are interested in a pattern which achieves several things in these trading 
opportunities. They are:
 Confirm a high probability of a rebound
 Permit the calculation of a high probability target
 Set identification and management conditions that are independent of technical 
analysis indicators

 

We use the stirrup chart pattern for this. This is a three part pattern, and unless all the 
pieces come together, the probability of success is lowered. Not all retreat and rebounds 
conform to this pattern, but when they do, we can trade with an increased level of confidence. 
We call them a stirrup pattern because like a stirrup on a saddle, they hang in mid air and help 
boost the rider into a higher seat.

 



 

This is the broad environment where we look for a stirrup pattern rebound. It starts when 
a stock has been moving steadily upwards, or has perhaps developed a recent burst of good 
price activity. This is followed by a retreat, or pullback in prices. The retreat is strong enough to 
trigger an exit for traders who already hold the stock. There is no doubt that a new downtrend has developed. The retreat is often much greater than 50% of the previous major price move, so 
Fibonacci approaches are not always a useful guide to rebound points. This is not a 
consolidation pattern where prices move sideways.

 



 

What attracts our attention is the possibility that prices may rebound from the downtrend 
and re-establish a new uptrend. The recent up move in prices has the potential to be the start of 
a new uptrend and if we enter early we can benefit greatly. Traders look for pattern 
developments that increase the probability the rebound is genuine.

 


The stirrup pattern starts with an upward sloping triangle that develops at the bottom of 
the price retreat. It is not uncommon to see the top of the triangle set at a well defined support 
and resistance level. In some cases, the top of this triangle is an extension of the bottom of a 
failed down sloping triangle. The key feature is a clear resistance level established over 3 to 10 
days. The sloping edge of the triangle starts forms the lowest point in the pattern.

 


The base of this up sloping triangle – the stirrup – does not have to show continuous 
price action in a single direction. This is a requirement when we use triangle targets. We are not 
using the stirrup for this, so we are more interested in the broad bullish message delivered by 
this type of triangle development. The upward sloping trend line starts from the lowest low in the 
price following the original high.
Once the stirrup pattern is confirmed we project two lines. The bottom line is placed on 
the lowest point of the price retreat, and the point which forms the start of the upwards sloping 
triangle. For clarity in the diagram we have projected this as a blue line to the left.

 


The second line is projected from the top of the previous price rise. Again, for clarity, we 
show this to the left as a blue line. These two lines define the upper and lower limits of recent 
price activity. They match the retreat and rebound extremes and the red arrow measures this 
distance in cents. This measurement provides the mechanism for setting the stirrup pattern 
price target.

 


This is where the stirrup pattern is different from an upwards sloping triangle pattern. In 
this case the triangle is used as a confirmation that a broader pattern is in place. It acts as a 
trigger, telling the trader that a stirrup pattern trade is available.

 



 

Once the stirrup pattern is confirmed, the target measurement is projected upwards from 
the top of the previous high. This makes this style of trade different from a rebound, or finger 
trade where the target matches the previous high. The stirrup trade sets a much higher target 
which is generally achieved in a steady continuation of the trend. Where the retreat has been 
characterised by a very strong bearish chart pattern, the upside target is reduced by 1 or 2 ticks 
as there is an increased probability of prices not quite reaching the target, or completing only a 
few trades at this level.

 


It is not useful to use the classic measurement of the base of the upwards sloping 
triangle as a target trade in this situation. As shown by the purples lines, this usually sets very 
low targets. The upwards sloping triangle is important in this chart pattern as an initiating trigger 
for a much larger pattern trade.

 


Aggressive traders may act in anticipation of the upwards sloping triangle being 
completed, but we prefer to wait until there is a close above this level. Returns from this style of 
trading range between 20% and 35% with around 65% reliability.
Once the target has been achieved there is no guarantee of a continuation of the trend. 
In some cases prices collapse quickly from these target levels, and this retreat may offer 
another stirrup trade set up.

 



 

The stirrup trade with Singapore listed Nera Telecom illustrates this type of trade. It 
starts with the price retreat from $0.385 to $0.335. The uptrend has halted, but we do not know if this retreat is temporary, or part of a longer term downtrend. Prices begin to rebound from 
$0.335. The upward sloping triangle – the stirrup in this context – is quickly confirmed by the 
way prices hit the resistance level at $0.355. There is no rush in identifying this pattern as there 
are no sound advantages in entering the pattern early. We can try to anticipate the development 
of the pattern, and use the base of the trend line as a stop loss point. However, if prices 
collapse below this up trend line at the bottom of the triangle they can fall very rapidly. It is safer 
to wait until the high probability trade pattern is confirmed.

 


After six days of persistent rises to the resistance level, Nera Telecom finally breaks 
above. This is also in the last third of the triangle pattern. This confirms the stirrup, and we plot 
the measurement lines from the low at $0.335 and the high at $0.385. These are then projected 
upwards to set a target at $0.435. A trade entry at $0.335 is available on each of the following 
two days.

 


Nera Telecom is a very fast moving stirrup rebound. It takes six days to reach the stirrup 
target price. This fast moving trend lifts prices above the target level, but it also collapses 
quickly. Traders have six days where it is possible to exit at their target price. This trade returns 
around 24%.

 


The stirrup pattern is based on a relatively small and unimportant upwards sloping 
triangle. What makes it significant is where it occurs in the context of a retreat and rebound 
environment. The stirrup pattern gives the trader a leg-up into a higher probability trend 
continuation. This is a useful pattern that provides reliable signals in a situation where many 
other techniques are less useful. The stirrup pattern signals a resumption of the pre-existing 
trend. It is a continuation pattern, but it has the advantage of setting target highs. This makes it 
useful in establishing the risk and reward relationship in the proposed trade. The trade has 
around 65% reliability, with typical returns between 20% and 30%.

 


Once the target has been achieved there is no guarantee of a continuation of the trend. 
In some cases prices collapse quickly from these target levels, and this retreat may offer 
another stirrup trade set up.

 


SUBJECT SUMMARY

 


STIRRUP PATTERN

 


The stirrup pattern boosts the trader into a higher probability trend continuation after a major priceretreat. We call them a stirrup pattern because like a stirrup on a saddle, they hang in mid air and helpboost the rider into a higher seat. The pattern starts with a small upwards sloping triangle that forms atthe bottom of a price retreat after a major uptrend. This triangle triggers a broader pattern development.

 


The stirrup pattern measures the distance between the previous trend high and the retreat low. 
This distance is then projected above the top of the trend high and sets a new target for the reboundbreakout. The stirrup pattern signals a resumption of the pre-existing trend. It is a continuation pattern, but it has the advantage of setting target highs. This makes it useful in establishing the risk and reward relationship in the proposed trade. The trade has around 65% reliability, with typical returns between 20% and 30%.



From: vimal raj at 09:30 AM - Oct 02, 201212 months ago )






Gireesh Babu at 06:38 PM - Jun 15, 2013 ( )

TRADERS MUST READ

Nitin Potade at 07:18 AM - Apr 21, 2013 ( )

http://www.mudraa.com/trading/171345/0/how-to-develop-the-day-trading-mind-hemant-.html

How To Develop The Day Trading Mind ( HEMANT )

 

Every time you sit down at your trading screen, remind yourself that "trading is statistics in action".  

 

Nobody knows what the market is going to do next.  It's a law unto itself.  You follow what works "most of the time".  

 

When you understand that trading is about probabilities, that any trading system is designed to provide a positive bias over the long term, then all you have to do is execute the plan.  So what is it that prevents you from being successful?  

 

You.  

 

Or rather, the emotional you.  

 

You need to work on developing the mindset of a professional trader.  Try this routine for 30 days and see how you go:

 

BEFORE: (At the start of trading day)

 

Step 1 - close your eyes, and remind yourself of the truths of trading:  "Trading is all about probabilities".  Write this on a yellow Post-It note and stick it to your monitor.  Permanently.

 

Step 2 - Mentally see yourself following your trading plan.  Entering a trade on signal.  Exiting at the right time.  Trading the right size for your account.

 

Step 3 - Visualize each trade as a tiny part of a big picture. You might want to visualize it as a matrix, with 100 boxes.  Each trade is unimportant compared to the overall scheme.  Create your own image for this.  (Your own is best.)  Trading is a visual process.  The point is you need a visual metaphor to distance yourself from the immediacy of real-time trading.  Anything.  

 

DURING: (When in a trade)

 

Step 1 - Physically relax.  Remember the definition of emotion?  "A physical disturbance."  You need to reduce emotional power as much as possible.  Prevent it from creeping up on you, and doing something silly.  So you don't feed it.  Relax.

 

Be aware of your whole body.  Remember the last time you got stressed.  What did it feel like?  Tense shoulders?  Stomach muscles tightening?  Relax those areas now. Know thyself.

 

Note - none of this suggests that you should be slow about entering or executing trades. Quite the opposite!   In real-time trading you must be fast.  But you are operating from your rational, thinking mind... and not the panic-induced animal mind fighting for survival!

 

Step 2 - Breathe!  Some traders stop breathing completely in a trade!  Breathe in slowly for a count of four, hold it for four, and breathe out for four.  

 

Step 3 - Focus on yourself.  Following a trading plan is a "no brainer".  You enter.  You trail a stop.  You exit.  Self-talk helps stay in the state.  Remember that when you're watching the price in real-time, there's a tremendous danger of adding emotional fuel to a simple situation.  Watch how you're feeling.  Observe any tension and let it go.  

 

Step 4 - Watch your language!  Words affect us profoundly.  Ever had someone scream at you?  Stirred up lots of emotion, didn't it?  So don't scream at the market.  Speak calmly.

 

Commentate on what the market's doing.  Speak out loud.  "The current trade began at hh:mm, the system gave a buy signal at price level, the target is with a stop at.. Stop loss was moved to break even at as per the plan...  The market is currently in trading range between x and y..."

 

All this helps you to stay objective.  

 

Also, avoid "what if" thinking.  Creativity has no place in trading!  Be mechanical .  Be objective.  

 

Step 5 - Continually remind yourself of what successful trading is.  See the current trade as just another trade. on just another day.  Your job is to follow the system - professionally and without emotion.  With practice, you truly won't care whether the current trade turns a profit or a loss.  

 

AFTER:

 

Review.  How did you do?  Were you trading rationally, or emotionally?  How much?  This isn't black and white.  It's about balance.  Think of it as 2 bar charts.  The higher the rational level, and the lower the emotional level, the more successful you'll become.  

 

Master yourself.  And the money will follow.

 

Vasanth K at 07:43 PM - Apr 07, 2013 ( )
excellent collections..thnks nitin sir..

Nitin Potade at 07:22 PM - Apr 07, 2013 ( )

http://www.mudraa.com/trading/99965/0/read-this-b4-u-trade-prabhakara.html

READ THIS B4 U TRADE {PRABHAKARA}

 

Dear friends !

All of us know that trading in the stock market involves risk and one should trade as per her/his loss bearing capacity. The followings are some rules that are known to most of traders(but not followed by many) who are having certain experience in the market and also should be known to new entrants

Intra day trading is an art rather than mere speculation. Some people think trading is gambling. But I have other views. Intra day trading is highly profitable if certain rules are followed.

RULES

 

  • Expect the unexpected and protect yourself from being a victim to the adverse situation that may arise.
  • Never ever trade without using STOP LOSS and if you think price will hit stops and move up or down as the case may be, you may keep the level in your mind till the level reaches stops and quit boldly without any hope and accept the loss as a part of trading.
  • NEVER be greedy to grab anything that you see rising.
  • Book profits in stages say at 25%on Ist tgt 50% on 2nd tgt and balance as 3rd tgt hits. This may reduce your profits but reduces your risk as well or trail stops to catch the big movement. Never be sorry if price returns from Ist tgt and hits stop at buy price or sell price. This does happen sometimes but only for 5-10% of the trades.
  • While buying/shorting never jump and start trading rather wait and watch to see that the recommended levels sustain.
  • Capital erosion is common in trading, therefore try to prevent it.
  • The cause of failure in intra day trading is taking huge losses and small gains and cursing own self for being stupid.
  • NEVER EVER fall in love with any stock. Rotate sectors.
  • No prayers work in the market; only believe in levels and what you see on the screen. Never follow rumours.
  • Never buy a stock because it has fallen much and vice-a-versa.
  • Never invest more than 25% of your capital on a particular stock and always sit on 50% cash.
  • Big Players know where the stop is kept by the common mass and drag the market to that point to trap small players as happens most of the times.
  • Never be anxious to earn. Most mistakes are committed only due to anxiety.
  • Do not try to calculate loss/profit on daily basis. If one earns daily it's good, but must accept some loss at stops in a bad day and never feel sorry for that and concentrate on movement of market.
  • Always trade with confidence and positive attitude.
  • If you win 60% of your trades, you are a gainer at the end of the month.
  • Hedge your delivery positions by buying put options if you are confident about market movement downward.
  • Invest your gains from stock market in other assets at least 50% of the gains.
  • Never take position in anticipation of a big move ahead either upwards or downwards. Hedge your position in such cases.
  • Try to recognize the trend with the help of Index mover stocks like RIL, SBIN, ONGC, ICICIBANK, BHARTI, INFOSYSTCH etc.
  • Always watch ATP(Average Traded Price) on your screen.
  • Accept the fact that market is always right and smarter than the traders. Do not have the idea of beating the market. In fact, nobody has ever succeeded in doing so.
  • Market gives chance for earning every day; therefore do not feel sorry that you missed a golden chance/opportunity. Rather try to find other opportunities.

 


Comments/views of friends are are welcome.

 


 

Source : E-mail



Nitin Potade at 07:18 PM - Apr 07, 2013 ( )

http://www.mudraa.com/trading/100019/0/trading-easy-may-be-not-prabhakara.html

TRADING EASY! MAY BE NOT ! {PRABHAKARA}

 

It's a common belief trading in stock or any money market is a fast way to easy money. But with my little experience, I can only say that making money, I mean big money is not that easy, may be in money market or otherwise. Money is something that never comes easily. And easy money if comes never lasts long. Money is earned by sheer hard work, patience and right actions at the right time.

In connection with earning in share market I would want friends to read the post. The link below will take you to the post where clearly defined the cause of failures in trading. Link http://www.mudraa.com/trading/99965/0/read-this-b4-u-trade-prabhakara.html

 


Who should trade what and how:

If you are new and do not have much back up funds, my sincere suggestion NEVER TRADE STOCK FUTURES. I welcome friends to enter in Stock Futures Trading only with capital above 1,00,000.00. With this friends can try max two lots and it is wiser to enter the second lot if the first trade is in profit and that is locked with a SL or has given realised profit. My request never ever trade without SL in Futures may be Nifty or Stock Futures. Give respect to entry, exit and stop loss levels and do not do anything smarter(that most of us think we are) while trading so that you repent, afterwords.

As you enter, please have in mind that the position taken may bring a loss at the Stop loss if market trend goes opposite to expected move. Unless you have the courage to face this please avoid taking positions. Book profits as per your appetite and never allow small gains to become a big loss. So bring the SL to cost as soon as possible and trail. Never hold a future or carry if you have limited capital or back up funds. Do not lose your head if one trade brings loss. Always there is scope to improve your trade and be in the winning side. In futures there is no word called partial booking if you trade one lot. Never catch a trade lower to selling price if not directed to do so because you may be in the wrong side of the fence.

If you are a beginner, please start with taking cash trades without any leverage. By this I mean if you have 50,000.00 trade only for 50,000 and not 5,00,000 or 10,00,000.00, that the brokers may allow. They gain always, no matter if you lose or gain. Never believe brokers' calls as these days most brokers are dishonest and trap poor traders to off load their holdings.

 


Future Trading.

Futures are derivative of a underlying may be a stock, commodity etc. While trading in Futures we pay certain percentage as Margin money that varies as NSE rules and volatility.

The safest future trading is NIFTY and MINFTY. Trading in these futures though gives comparatively lower returns also brings lower loss. Maximum loss that can be taken is 1000.00 as the Stop Loss is 20 or less points and lot size is 50. Trading in stock futures requires higher margin and brings in higher gains and loss as well.

I trade only futures. I am comfortable with that types of trades. I would never invite new friends who are starting with less that 1,00,000.00 capital to trade futures. Rather I would suggest to follow cash equivalent entry, exit, and Stop loss using small margin.

Do not trade if you do not enjoy trading. Use your time in other productive works. In fact, trading is one of the hardest jobs and that tests you from all corners of your personality. If you feel you do not have that edge in you just quit and forget the market.

 



Option Trades:

Basically used for hedging purpose. I do not welcome options unless otherwise I am 100% sure. Always trade with Stop Loss as designed by the call giver. Most dangerous and if allowed to take over human instincts, is like a poison that does not let you know when you are finished. Please do this trade only with professional advice or with proper research.

 



Delivery trades:

The easiest one. Take short term or long term and forget. Your money, your assets. But this also does not guarantee profits always in this highly manipulated market. Go by the recommended levels and you could gain.

Therefore, my request is, give a definition to yourself first as a trader and do the trades that suit you. Manage your Risk and decide the amount that you can afford to lose. Bring discipline to trading and I am sure you enjoy every moment of it. And never forget the fact "All that glitters is not Gold"

Best of luck.

 

Prabhakara

 


 

Source : Email

 

 




Nitin Potade at 07:01 PM - Apr 07, 2013 ( )

http://www.mudraa.com/trading/152872/0/daily-reading-on-the-principals-and-psychology-of-day-.html

DAILY READING ON THE "PRINCIPALS AND PSYCHOLOGY OF DAY

 

THE TRADE DECISION
1. Never add to a losing position.
2. Always determine a stop and a profit objective before entering a trade. Place stops based on market information, not your account balance. If a "proper" stop is too expensive, don't do the trade.
3. Remember the "power of a position." Never make a market judgment when you have a position.
4. Your decision to exit a trade means you perceive changing circumstances. Don't suddenly think you can pick a price, exit at the market.

 


THE MARKET HAS CHARACTER
1. In a Bull market, never sell a dull market, in Bear market, never buy a dull market.
2. There are times, because of lack of liquidity, or excessive volatility, when you should not trade.
3. Trading systems that work in an up market may not work in a down market.
4. There are at least three types of markets: up trending, range bound, and down. Have different trading strategies for each.
5. Up market and down market patterns are ALWAYS present, merely one is more dominant. In an up market, for example, it is very easy to take sell signal after sell signal, only to be stopped out time and again. Select trades with the trend.
6. A buy signal that fails is a sell signal. A sell signal that fails is a buy signal.
7. It's always easier to enter a losing trade.
8. In the "blowout" stage of the market, up or down, risk managers are issuing margin call position liquidation orders. They don't check the screen for over bought or over sold, they just keep issuing liquidation orders. Don't stand in front of a runaway freight train.
9. You are superstitious, don't trade if something bothers you.
NEWS
10. Buy the rumor, sell the news.
11. News is only important when the market doesn't react in the direction of the news.
12. Read today's paper tomorrow. When you read yesterday's paper each day with the knowledge of what the market already did, you will affirm that this mornings paper with yesterday's news has nothing to do with today's market.

 

A TIME TO TRADE
1. On the open, never enter a new trade in the direction of a gap. Never let the market make you make a trade. (Closing an existing position is obviously ok.)
2. The first and last tick are the most expensive. Get in late and out early.
3. When everyone is in, it's time to get out.
4. Never trade when you are sick.

 

TRACKING YOUR TRADES
1. Size kills. Only change your unit of trading under a plan of attained goals. Also, have a plan for reducing size when your trading is cold or market volume is down.
2. Confidence kills. Remember, you really don't know anything. Respect the market every second of every day. Expect the unexpected. Always know your position and exit your trade immediately whenever you feel uneasy.
3. Measure yourself by profitable "days in a row," not by individual trades.
4. The best way to break a streak of "losing days in a row" is to not trade for a day.
5. Don't stop trading when your on a winning streak. "When your hot, your hot."
6. Three strikes and your out! Don't turn three losing trades in a row into six in a row. When your off, turn off the screen, do something else. "When your not, your not."
7. Scalpers reduce the number of variables effecting market risk by being in a position only for seconds. Day traders reduce market risk by being in trades for a matter of minutes.
8. If you convert a scalp or day trade into a position trade, by definition you did not consider the risks of the trade.
9. Don't ever fret about a missed opportunity. There is always another one just around the corner. Besides, several just happened that you didn't even know about.

 


MARKET OPINIONS
1. If you look for market secrets you will only find things that no one cares about. Use the conventional tools.
2. Never ask for someone else's opinion, they probably did not do as much homework as you.
3. When the market is going up, say "the market is going up." When the market is going down, say "the market is going down." Say it without qualifications, no "buts" attached. This is a reality check, you'll be amazed at how hard it is to say what is literally going on in front of you when your mind is full of preconceived opinions.
4. THE DAILY MARKET COMMENTARY: I've never had an opinion I didn't like, however, successful day trading requires flexibility. Do your homework not to develop a market opinion, but rather to understand the potential for both sides of the market. This will allow you to make your trades based on what the market is doing at the time of the trade.
5. Here is a quote to remember: "When you wake up, your instincts are wrong."

 


SOME FINAL THOUGHTS
1. When you make a mistake of discipline, whine like a fool to anyone that will listen. Errors in discipline are mistakes you will keep on making for many years. Wearing ashes and sack cloth may help extend the time before you do it again.
2. If you squirmed and moaned while you read this list, then you share two obvious characteristics with many of us: 1.You have traded long enough to recognize that you (not the market) make mistakes, and you try to overcome them.

 

And 2., now this is ugly,

 

You have become part of the market and you can never leave.

 

No matter where life takes you, you will always check the market and always want to continue being a part of it. It's like that first true love, it will always be there no matter what the distance,no matter whether they are alive or dead.

 

Why is it so hard to spent 5 minutes each day to re-read this list?

 

Nitin Potade at 06:54 PM - Apr 07, 2013 ( )

http://www.mudraa.com/trading/99956/0/stock-market-using-stop-loss-order-prabhakara.html

Stock Market: Using Stop-Loss Order {PRABHAKARA}

 

Stop-loss orders are like health policies for stocks, which come at zero premium. Besides reducing your losses, they also help you to lock in your profits Talk to investors and we find thousands of instances where people just ignored one basic principle of investing: Setting stop losses and sticking to it.

What is stop loss?

It is a pre-defined order to automatically sell a stock when it falls to a certain level. When the stock reaches the point, the stop-loss order becomes a market order and the trade is executed. It’s a very important investment tool, especially if you are typically trading in a bullish market situation, which helps to save the larger part of the pain in case the sentiment turns

How it helps?

Stop loss is an important risk-management tool used to exit a stock before it falls any further. This not only helps in reducing your losses but also to lock in your profits. Consider you bought a stock sometime ago at Rs 100 and the stock is now trading at Rs 140. Now some negative news on the company follows bringing the stock to 120 levels. In this case, fixing an order at, say, Rs 130 may help retain a large part of the profit. It also comes handy when you go on a vacation or holiday and are not in a position to watch your investments regularly. Setting stop losses is all the more important for traders, who deal on a day-to-day basis and who have to generate returns with a limited pool of capital. Here, it helps to restrict their losses

How to set a stop loss?

This depends on the way a particular stock behaves. If any stock fluctuates 4-5% in usual market situation, stop loss should not be fixed too close to it, or else the order will be triggered in day-to-day stock movement.

Setting stop loss for a particular stock is interplay of one’s risk-taking ability, the stock market situation and how that stock behaves. The idea here is setting a stop-loss percentage that allows it to fluctuate day to day while preventing as much downside risk as possible. And for investors who believe stop losses need be adjusted from time to time, Stop losses have more to do with discipline, so I don’t think adjusting them from time to time is a good idea.

Bottom-line

Stop loss is a double-edged sword. It might be that one had bought fundamentally good stock but the price falls because of reasons other than fundamentals. So if the stop loss was fixed in that case too, the order would be triggered, which is not justified. Hence, stop losses are good for momentum buys and not for fundamentally good stocks. This tool is like health policies for your stocks which come at zero premium. It doesn’t require much to set it but rewards in return are plenty.

 


 

Source : Email




Nitin Potade at 08:35 AM - Mar 03, 2013 ( )

FORMULA TO MAKE VALUE TO NEAREST 5 PAISA in excel

To make all price in multiple of 5 paisa, please use the following formula.

if you want to convert 40.84 to nearest 5 paisa.. it will be 40.85

For example, if 40.84 is in M22, then =ROUND(M22/5,2)*5 in any blank column,

so it will convert into 40.85 

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