The Seven Mistakes All Novice Traders Make and How to Correct Them
Posted on July 10, 2008 - Filed Under Tips, Trading, Tutorials | Leave a Comment
The Seven Mistakes All Novice Traders Make and How to Correct Them
We learnt the following the hard way! If any of these things applies to you, don’t worry – there is an easy solution!
MISTAKE ONE
> Lack of Knowledge and No Plan
It amazes us that some people expect to trade the stock market successfully without any effort. Yet if they want to take up golf, for example, they will happily take some lessons or at least read a book before heading out onto the course.
The stock market is not the place for the ill informed. But learning what you need is straightforward – you just need someone to show you the way.
The opposite extreme of this is those traders who spend their life looking for the Holy Grail of trading! Been there, done that!
The truth is, there is no Holy Grail. But the good news is that you don’t need it. Our trading system is highly successful, easy to learn and low risk.
MISTAKE TWO
> Unrealistic Expectations
Many novice traders expect to make a gazillion dollars by next Thursday. Or they start to write out their resignation letter before they have even placed their first trade!
Now, don’t get us wrong. The stock market can be a great way to replace your current income and for creating wealth but it does require time. Not a lot, but some.
So don’t tell your boss where to put his job, just yet!
Other beginners think that trading can be 100% accurate all the time. Of course this is unrealistic. But the best thing is that with our methods you only need to get 50-60% of your trades “right” to be successful and highly profitable.
MISTAKE THREE
> Listening to Others
When traders first start out they often feel like they know nothing and that everyone else has the answers. So they listen to all the news reports and so called “experts” and get totally confused.
And they take “tips” from their buddy, who got it from some cab driver…
We will show you how you can get to know everything you need to know and so never have to listen to anyone else, ever again!
MISTAKE FOUR
> Getting in the Way
By this we mean letting your ego or your emotions get in the way of doing what you know you need to do.
When you first start to trade it is very difficult to control your emotions. Fear and greed can be overwhelming. Lack of discipline; lack of patience and over confidence are just some of the other problems that we all face.
It is critical you understand how to control this side of trading. There is also one other key that almost no one seems to talk about. But more on this another time!
MISTAKE FIVE
> Poor Money Management
It never ceases to amaze us how many traders don’t understand the critical nature of money management and the related area of risk management.
This is a critical aspect of trading. If you don’t get this right you not only won’t be successful, you won’t survive!
Fortunately, it is not complex to address and the simple steps we can show you will ensure that you don’t “blow up” and that you get to keep your profits.
MISTAKE SIX
> Only Trading Market in One Direction
Most new traders only learn how to trade a rising market. And very few traders know really good strategies for trading in a falling market.
If you don’t learn to trade “both” sides of the market, you are drastically limiting the number of trades you can take. And this limits the amount of money you can make.
We can show you a simple strategy that allows you to profit when stocks fall.
MISTAKE SEVEN
> Overtrading
Most traders new to trading feel they have to be in the market all the time to make any real money. And they see trading opportunities when they’re not even there (we’ve been there too).
We can show you simple techniques that ensure you only “pull the trigger” when you should. And how trading less can actually make you more!
Tips for Day Traders
Posted on June 2, 2008 - Filed Under Tips, Tutorials | 2 Comments
TIPS FOR DAY TRADERS
1) If you are getting profit then please do book your profit first. Do not wait for more profit.
2) Do not wait or keep any trade more than 1:30hours. First book the profit or loss & then do new trade.
3) If advance Shares are more than Decline Shares then never make short position.
4) When you see that Numeric of Decline Shares is increasing means”GIRNE WALE SHARES” on that time short the position in Nifty.
5) Many times I saw that, only on the basis of day Trade Shares or depends only on Future’s Window short or buy position have been done by many Traders. But if sellers stand in more numbers then do not do any short position, first do wait and watch the shares rate & now do your position short on Higher Level Rates. Same as above if Buyers stand in more quantity wait for some time & when rates of the shares are coming lower, on that time you just buy.
6) If any Shares & Future Scripts do trade up to the 10 minutes of Crucial Point, that time should be buy & book the profit on R1-R2. When you are going to short the position do trade down to the 10 minutes of Crucial Point (According to below) & book the profit on S1-S2.
7) Always keep stop loss on Crucial Point.
If any Shares do trade on the 5DMA then be buy on that time but first see Crucial point.
9) If any shares do trade under the 5DMA, just do short the position but first see the Crucial Point carefully.
10) Never over the position for any greediness.
11) Do trade only depends on your capability.
12) Your money is only yours, don’t turn it into loss.
13) Safe & profitable trading is that should be do 1 or 2 trade only in a day & if you are getting profit of Rs. 500/- to 1000/-, you can hold this trade or you can keep it for Delivery base.
14) Please listen & watch carefully that whole profit is not only for yours.
15) You cannot catch Higher Level & the Bottom Level, so please be carefully always.
Note: If you will do trade according to these above tips, you will never take any losses in future.