Trader maker

All profitable trader follows a strong money management rule. Nowadays most of the traders think that money management means Risk to reward ratio only. But money management actually having a lot of components including Risk to reward ratio. If a trader does not follow a strong money management rule, he cannot grow his money in a significant way. Money management have the following components. 1. Capital allocation for different type of trading (intraday, swing and investment) 2. Account size or Total capital.  3. Risk per trade. 4. Position sizing. 5. Increasing the position sizing. 6. Incremental buying or selling (Pyramiding) 7.  Leverage for the Trading system. If you understand the above seven money management rules, and if you can implement it correctly, I think you will become profitable sooner or later and which will make you wealthy eventually. 1. Capital allocation for different type of trading (intraday, swing and investment):   Many traders th...

The easiest way to make money from trading is easy money capturing strategy. You may already know that the market is mostly volatile, unpredictive and sometime trending in nature. Most of the traders try to capture money form the market most frequently and without doing the analysis, that’s actually makes them too loose more money in the market. However, trading is all about waiting for the right time to take the right trade. 80% of the time you just have to seat calm and just to watch the market so that when you get any opportunity, you can capture that and make as much as money you can. Most of the Traders try to capture money from all kinds of market, in my opinion it is not correct. Firstly, you need to understand the nature of the market first and the day (if you are doing an intraday trading). The nature of the market depends on the geo political situation and the financial stability and last year/month and days performance as well. All the markets are connected from investors ...

The biggest mistake any intraday traders commits during its initial journey is to attached with a specific stock or to become egoistic with it. Either in the cases traders loses their money. Let me explain with an example. Suppose a Trader has bought a stock at a certain price and after his buying he has fixed a stop loss in his mind. Now when the stock just near to stop loss price, it formed an interesting pattern in candle stick. Now the trader is thinking of a reversal and he just changed the stop loss a few points lower. There might be a possibility that after a certain retracement the stock might fall lower.  Sometimes traders do not put a stop loss in the system but in mind and changes the same after a while when he is in loss. Sometimes traders just wait for a reversal and fight with market hoping and praying for its buying price. Even if it comes to a buying price, they change their mind and wait for a while hoping for a profit.  Hope does not work in stock marke...

There is a wrong belief that if someone starts trading, he/she will be profitable from the very first trade. Most of the traders thinks so, but the reality gives them the big hit and realizes that the truth is far away from their expectation. Every year 2 million new traders starts their journey in stock markets but after spending 2 years, 98% of them quits after losing their hard-earned money.  The larger people quits just because they have wrong expectation from stock market. Of course, it is true that stock market is the ocean of money, but earning from the stock market regularly needs special attention, proper education and experience. Remember that it is the most sophisticated profession. If the right techniques are mastered you can earn from anywhere, anytime and you will achieve financial freedom. To achieve financial freedom, you need to go a long way. Remember that, Stock market is not a destination but a journey. You should choose the smoothest path, such a way that y...

I always compare Trading as a war, like war, trading has an emotional and psychological situation. In a war there is a fear of losing life or everything and greed to win it over, as a brave man. The same is applied in trading it is 7 hours war a day with a few battles. If you are in the winning side, you will get rewarded but if you are in the losing side, you will be punished. To win a war you should have a better strategy, few weapons and a master-plan. But always remember that you are not going to win all the battle in a war, there will be few battles where you have to accept your defeat. The quicker you will realize your mistake and accept your defeat you are going to lose the lesser, and you will get much time to prepare for the next one. To win a war every participant has some weapon, no solider believe on a single weapon. For example, in modern war, people use, riffle, AK47, Tanks, missile, hand grenade Drone etc. Similarly, as a Trader you should not believe on a single strat...

Many Traders in stock market think that Intra-day trading is a source of regular quick money, however, most of the people, especially investors and swing traders believes that, money can be ruined by intra-day trading. The problem is mindset, you can be an investor, swing trader or a day trader, you have to have a different kind of mind set for each of the category. Category is not the problem, mindset is. If you really want to be a successful trader, you should take trading as a business. Profit and loss are the integral part of any business, the same is applied in stock market as well. let’s take a hypothetical situation that you are going to set a business. What are the points you need to take care? Out of thousand points few basic points are mentioning herewith; Business establishment capital, Operating capital, Location of the business, employee, Product, Knowledge on the business or how to make profit from that business (business model), Journal, Tax calculation, customer etc. ...

When a Trader starts trading, he only believes on the indicators. Almost all the unsuccessful traders use one or many indicators in combination. SMA, DMA, RSI, MACD, Bollinger Bands, VWAP, Stochastic etc are most commonly used indicators in the market. Many novice traders believes that 20 SMA and 200 SMA cut over is a best signal, some believes that 80 RSI point is overbought position and 20 is oversold position. Some believes that exceeding Bollinger band is a best signal. Some of the traders uses a few indicators in combination to identified the best signal. Sometimes they are successful to trade on those trading systems but in the long run they fail to make profit using those indicators.  The reality of any indicators is same and that is, all the indicators are mathematical formula of its historical prices. The indicating points are just the derivative of the recent past prices with some visual effects. If you are believing on those visuals .... best of luck. Do you really...

Every trader often faces a common problem that they regret about their exit price. after exiting the trade, the stock has started another rally and traders regret why they have exited from the stock. Many veteran traders have faced the same issue.  Almost all the traders want to buy at a lowest price and sell at a highest price. Traders argue that buying at lowest price could be treated as risk as the trend reversal has not started yet and there is no confirmation that there will be a reversal after that price. Agreed....... But what about the selling? How do you identify the highest price to sell? Some traders believe that you cannot take the whole rally and make an extremely good profit. Accept whatever you are getting from the market and be thankful. That's okay.... Now, the question is at which price we can sell? Before selling any stock in intraday, you just need to check the following points. Nearest exponential pivot point. Nearest round figure of the price. ...

Psychology plays a great role in day trading. Everyone wants to buy at low and sell at high and to capture the upward or the downward moment fully to get the maximum profit. But only two types of persons can execute the trade properly, one is GOD and the other is the liar. It is really impossible for anyone pick a stock at bottom and sell at top. However, most of the traders fails and blame their psychology.   Another one scenario is stop loss management, while providing stop loss, most of the time after hitting the stop loss the stocks move on the right direction. Mentioned points makes mad any trader specially on the initial days. Stop loss management is a different topic. However, I am explaining the psychology of a trader in this topic.   Let’s take an example of a hunter who is having a sniper in his hand and trying to shoot an object. Now to be successful hunter, he has to practice a lot and has to be knowledgeable enough to handle a sniper. If he is not so, he will ...

Habits define a person and his behavior. Personality and behavior is an important factor of a successful trader. A mental balance and calmness is the key factor of any successful trade. Just imagine, the mental state of yours when you are in the trade. when the price is closer to your stop loss, the intensity of your pray to god become higher. Image the regret  when the price moves faster after hitting your target price. Fear, losses, greediness or profits always effects your mental state of your next move as well. After hitting a consecutive 4 profits in a row makes you more confident to overconfident and a consecutive 3 losses in a row can put yourself in darkness. These are the two sides of a single coin. In this mental, emotional and psychological blockages you can overcome by having few good Habits.  Be an early riser. Do some exercise, yoga or at least breathing exercise. Read a business newspaper every morning. Evaluate the speculation and the news from the news headlin...

The most popular question of any Intraday trader is how to select  stocks for trading in a particular day. Many of the Traders believes that they need to select the stocks which will have maximum possibilities to provide upside or downside on a particular day.  As per me, it is very difficult to predict or to choose the most movable stocks on intra-day basis as because you have to relay on the news and the speculation for such an approach which can be venerable. However most of professional do it on the other way. In this context I will describe the process I follow. You will agree with me that we should select the stocks which will have most liquidity and most of the players attention. I always prefer index stocks on the same. My approach is that , we need to chase six to eight particular stocks on regular basis to understand the nature of the stock, Byers and sellers activities, pattern they are forming, time to trade those stocks and its behavior.  You should take the ...

 Most of the retail traders fail to success in trading just because they have the wrong expectation from the market. During the early days any traders thinks that there are a lot of money in stock market and they will be easily garb those money anytime they want. They become successful few times but eventually they fail just because they have wrong expectation to become super rich within a very limited time. Please understand that, stock market is a journey not a destination. even if you are able to capture huge money in a shorter time, are you going to exit from the market and don't you trade afterwards? The answer is yes... you are going to trade rest of your life .... so my question is why are you in such a hurry? If you stays in the market for a longer time you will eventually make money. There is a "90-90-90" rule in stock market. Many of the retail trader do not know about this rule that 90% of the retail traders looses 90% of their money within 90 days. are you bel...

Every traders, in their life have at least once, tried intraday trading. Most of them failed to succeed just because they had a confusion of whether it is possible to earn money from intraday trading consistently. I am doing it successfully for a longer time. I also beleave that the question arises to your mind because, you want to do so but failing. Don't worry, it just a matter of time you will definitely win. As per me , if you believe that you can make money from intraday trading, you will. but unfortunately after failing quite a few time most of the traders give up. Correct decision making, understanding the trend for short term basis, following the news and understanding  technical analysis and price action is the key aspect of doing consistence profit of intraday trading. If you want to do so, on regular basic, set up your mind first towards the strategy and practice your strategy in the market. Analyze what kind of trader you are, do a research on your mindset, understand y...

The most important aspect of day trading is time. If you have knowledge on correct market timing and correct trading hours according to your personality, you will become successful eventually. Most of the traders do not give value to time and think that they can make money all day. Sitting long hours in front of computer screen (stock market) will make you exhausted and impatient. You are bound to take wrong trade if you do not understand the nature of the market, as per your preferred and suitable time. You need to wait for the right moment and for the right trade. If you are able to do so.......Bang on..... Let just slice the timings of the markets in few pieces. Pre-market:   Pre market starts at 9:00 AM and ends at 9:07AM. Experienced players puts their bets on pre-market. at 9:08 AM. You will be able to see all the opening prices, sectoral and index movement after the pre market. You will also be able to know if the market will flat, gap up or gap down. Next 7 minutes mark...

Despite a good sells report Tata Motors Share has started falling today from 358 Rs per share price at around 1:40 PM. During the morning session It has Started a swing up till 3% expecting a sells growth. The media report announced by Tata Motors shown that The sells growth was good in all the segments including Jaguar and Land rover. After that, A news came out that ‘Senior executives from Tata Motors, Renault design team quit and joined Mahindra' After the news came out', market has thought of a weaker management and the stock started falling.  The company has also told that there will be a price hike of the passenger vehicles because of the high steel price and there was a huge semiconductor shortage for the Electric  vehicles as well. It has also added a negativity to the sentiment and the stock has hit a lower circuit. Finally the stock has closed at 8.33% lower from its opening. and last traded price was 316.90 Rs per share. A huge amount of Selloff is been seen wit...

Practice Practice and Practice.... If you want to become a successful trader in the market. The more you practice your eye will be set for the next move of the market. I can remember that during my earlier days of trading, I used to trade only with a single quantity, to understand the market for both swing and Intraday Trading. Most of my trades, were failure back then. However, I have not given up because I was not concentrating on money those days and I have not lost my capital as well due to small quantity. What I learn from those days remains with me forever, which eventually made me a profitable trader. I started observing patterns on the market and taking notes on price behaviours. Those learnings and practice helped me to understand, pullback, retracement, type of retracement, bull run, Bullish momentums, accumulation, distribution, and most importantly how a candle is been formed. Now a days, many beginers and retailers are taking online courses and think that someone will ...

Chart set up is one of the important aspect of trading. You can be an Intraday trader, Swing trader, Future or Option trader, but setting up the correct chart is the key to your success. In broader spectrum, it has been seen that traders generally follow, 1min, 2min, 5 min, 15 min, 1 hour, 4 hours, 1day, 1week and one-month candlesticks charts. However, the current market price is same for all of the charts, but the position of the price is different in different timeframe. Traders try to find out the value of the price in different timeframe. Trend of the price plays an important role for profitable trade in this aspect.  Generally intraday traders and scalpers follow 1min, 2min, 5 min, 15 min, 1 hour candlesticks chart pattern and Swing Traders follow 1 hour, 4 hours, 1day, 1week and one-month candlesticks charts. Traders also uses indicators on top of these charts to get a perfect indication about buying and selling. As we all know that all the indicators are visual effects of...