Today’s trades :27th February..........
RelCap shorted at 390……..covered at 386 (lot size 1000)
RELinfra shorted at 460……covered at 455.50 (lot size 500)
HCLTech shorted at 718……..covered at 714 (lot size 500)
JSWSteel shorted at 765……….covered at 758 (lot size 500)
Bajajauto long taken at 1945 (2L)…..booked at 1955 &
1970( lot size 125)
Axisbank long taken at 1388…….booked at 1392 (lot size 250)
LT long taken at 1401…….booked at 1415 (lot size 250)
Axisbank long taken at 1395………booked at 1404 (los size 250)
NF Position shorts 5810…….covered 5760
NF Positional shorts 5870…covered at 5805
NF intraday long taken at 5805……..exited at entry
NF shorts added at 5805….
Holding shorts from 5910, 5805...........
BNF positional shorts 11942…covered 11895
BNF positional shorts 11895....covered 11895
BNF intraday longs taken at 11941…..booked at 11961
BNF shorts added at 11940……..
Holding shorts from 12312,11940.....
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Are you Determined to Succeed?For some people, success comes naturally.For others, it is something that they really have to work hard for. Although people are created equal, there really are some people who might not get to succeed. If you want to have success, you would really need to be determined to succeed. Nothing is impossible in this world, so you should really try to find ways in order for you to get the success in life. One of the first things that you need if you want to succeed in whatever you want to do is to have faith in yourself. If you believe in yourself, and your ambition is firm, you could really be on your way to success. Any trouble and hindrances on your efforts will just be nothing if you keep believing in yourself. Although some failures may be quite depressing, especially if it involves something that you want or need so badly, you should only see them as a lesson in life. Learn from them and try to move on with what you are doing. If you just suppress your failures with your confidence, you will find that what seemed impossible can be solved. Another thing that you need to remember if you want to succeed is that you have to resolve that you will succeed. If you are determined to succeed, you will often get the results that you want. You should promise to yourself that you will become successful. You should always try to focus on the goal that you want, and not any other thing. Although there are many things in life that can divert your attention, you should always keep yourself resolute in order for you to really achieve success. If you are focused, you will have a much better chance of attaining the success that you need. If you really want to succeed, you might also want to find ways that you could motivate yourself. There are many different books that you could read in order for you to find the success that you want. Aside from that, you could also try to find mentors that you could base your success on. This way, you will have a better idea on achieving what you want. You will really get to have the success that you want if you know the steps that you need to take in order to achieve it. Success is something that most people can readily achieve. However, many people still find that it is hard to get success because of hindrances. However, success often boils down to your own determination. If you are determined to succeed, you would really get have what you want. You control your success, so you should really make it a point to tell yourself that you can succeed. (Source : Email from One of my Teachers) --------------------------------------------------------------------------------
Why traders get emotional...????
Why traders get emotional and not able to follow through their plans?
The answer is quite simple.
When you make your trading plan, you use your brain.
When you start to execute the plan, implement your strategy, leave out the "thinking"...leave out your "ego".... Just do it.
Using your brain unnecessarily, you end up a loser...and you have also seen many messing up their trades despite knowing fully well what should be done.
Now try this: Without using your brain, simply execute the trades. Wait... wait..not just yet.. Wait for those "good trade set ups" to emerge and then start.
With this knowledge that trades are messed up when we start having "opinions" of what the market will do....and this fear holds you back from doing the right thing.
So the steps you must take include:
1. Plan a trade with one or two contingency plans.
2. Key in your order to buy or sell.
3. When the order is executed, key in the "Exit price" along with your SL.
4. Do not change it unless one of your contingency scenario start to play out.
5. For simplicity, you can do away with contingency plans.
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How to rollover if next series is in high premium...?
jayant singh: sir good afternoon
gauresh59: gm jayant singh: sir how should we manage the rollover as the diff is almost 50 points gauresh59: should not rollover if in losses...... gauresh59: it all depends of your trades..whether long or short gauresh59: for long trades......should not rollover ... gauresh59: but short trade you must be in proift if rollover is done jayant singh: i am asking for trades based on MY SAR gauresh59: dear in that case we book partial profits, then where is the problem....we should be practicle... gauresh59: should close the long position, if premium is too much high.....and not adjustable... gauresh59: and enter into trade on the day when series starts gauresh59: in case of short positions, bears are always in profit in rolloever if there is premium in the next series jayant singh: yes sir got it gauresh59: hence they do not find any difficulty gauresh59: one has to be practical... gauresh59: if you are long...then why to pay 50 points of premium just to go for the next series... gauresh59: we should wait for the day when it starts...and will trade accordingly...Dear Market is for ever ....Shall we not wait....??? gauresh59: Of course, those who have taken more lots can rollover 25% of their long holdings. Because in that case the risk is less..... jayant singh: sir what is the developing SAR for tomm gauresh59: 5225 jayant singh: thank you sir |
No...no.... let me put heading in Red colour of fonts .....!!!!! General Mentality of Youngsters.......??? Why...??????
Devesh Mistry: hi
Devesh Mistry: sir, i have one query can I ask?
gauresh59: yes, go ahead dear
Devesh Mistry: in the blog you mentioned the trades taken by you, but I have seen that many a times the results are in red continuously...even though you mention them. All such trades may create wrong impression for your system. Do you not feel so? How will a new comer be impresed to subscribe?
gauresh59: ohh....
gauresh59: dear just remember I am not a tips provider, i run paid service not for the income of mine. Subscription is a fund raising tool and the fund is utilised for the welfare of poor students.
gauresh59: to be very frank I am not hungry of subscription because i am not in the tips providing business.
Devesh Mistry: But what about the impression of such negative results in trades?
gauresh59: Dear I put trades what I took whatever may be the results. And why should I expect profits from each and every trade? You mean should I mention only those trade which give profits and do not mentioned those incur losses….? Why should I create such a wrong impression by creating false trading statement….?
gauresh59: I evaluate results only at the end of certain period...say at the end of month or three month or six months.
gauresh59: After the completion of each tranaction Balancesheet is not prepared by any businessman.
gauresh59: My mission is to create discipline and determination power in the trader boosting up his self confidence.
Devesh Mistry: How will all these help in trading activity in the stock market?
gauresh59: Every market is run by fear and greed factor. You must have control over these two factors to get success in any business.
gauresh59: In the absence of discipline and determination power, how can a trade can exercise control over fear and greed?
Devesh Mistry: ok
Devesh Mistry: Sir, if i want to trade with only 20000, is it possible to get profit with this much capital?
gauresh59: to be very frank, one must have sufficient capital to run a business. With such a small capital, you can get profit...but the profit would look to you so small that you consider it as a waste of time, money and energy.
gauresh59: It all depends how you want to trade, intraday or positional..?
gauresh59: in case of positional trade, you are at liberty to do any other activity for income generation over and above this stock trading.
gauresh59: But if you want to trade intraday, you must have sufficient finance otherwise you will have to wonder a lot in search of finance instead of doing trading.
gauresh59: May i know how much you expect with this 20000 investment..?
Devesh Mistry: 5000 per month. is it possible?
gauresh59: Ohh....what a high expectation ....!!
gauresh59: dear, 5000 comes to 25% of employed capital of 20000.
gauresh59: How is it possible in any business...?
gauresh59: even if it is possible it is for one or two times only...not for ever
gauresh59: To my mind even if you get 1500 or 1000 per month with this 20000, then it is to be considered a good return in case of stock market.
gauresh59: May I know your age and educational qualification ...?
Devesh Mistry: Sir, my age is 27 years. At present I am studying in MBA in finance
gauresh59: Dear, you are a student of finance and still expecting such a high return with such a small amount of investment? Even if you have any such system, I do not prefer to know and go deep in it. Please do not try to present here such an unreasonable system.
gauresh59: ok...will talk later on at any weekend day.
gauresh59: ok.. bye….
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Reasons to incur losses
Many people think trading in the stock market is the easiest way to make money. Especially now a days young generation think so and does not want to change their ideology. They want easy and quick money without any painstaking…., and ultimately it results in to heavy losses.
Of course as per my opinion, trading and making money in stock market is easy…..provided one possesses “3D” and “3M” factors.
“3D” Factors are : Discipline…., Determination ……and Dedication
“3M” Factors are : Mind ….., Method…..and Money.
In the absence of all these factors it is natural that any trader would get negative results in his trades committing certain mistakes. Below are some of the ways of undisciplined trading. Have a guard against them otherwise market will wipe you out completely.
Trading during first 15 minutes of the session:
The first 15 minutes of the trading day is mostly driven by emotions of the traders affected by overnight movements in the global markets and hangover of the previous day’s trading. Also this period is used by the entry of novice traders in taking new entry which might be contrary to the real trend which emerges only later in the day.
Mostly experienced traders simply watch price movement during first 15 minutes to study intraday patterns of the trend and subsequent break outs.
Similarly last 15 minutes the trend is not real due to squaring off of positions by the intraday traders. And hence new entry should be avoided during last 15 minutes too.
Failing to reduce the position size:
A trader should be flexible in reducing his position size whenever market is not giving clear signals. For example if he takes an average position for 10 lots in nifty futures, he must be ready to reduce it to
2 lots only if situation of price movement arises so. This can happen either when a trader wants to trade counter trend or when market is not displaying a strong trend remaining in very narrow range. The size of exposure should be as per the market mood at the given point and partial profits should be booked as soon as the trades starts earnings two or three times the average risk taken. Undisciplined traders driven by their ego mostly do not reduce their positions nor become ready to book partially and ultimately put their trade into more risk. In fact a trader should be firm determined to book partially so as to reduce the risk factor. It creates confidence and faith in the trade taken, protects the employed capital.
Over Trading:
In most of the cases intraday trades lose money in over trading. They use the exposure given by the brokers for intraday trading. But when trade goes wrong they lose their most of the part of their capital due to over trading. In fact a disciplined trader creates position size as per his own financial capacity. And as a result he has not to lose and waste unnecessary time in search of finance when his capital gets reduced due to hitting of stop losses. When a trader uses exposure given by the broker, the broker earns his brokerage, but trader earns only if the trade goes in his favor. If the trade goes against him, he has to incur loss for the whole trade. Let us take example, if a trader has 35k for trading, he is capable to trade only one lot of nifty future with the general rule of stop loss of 20 points. Now if he trades only for one lot, he may have to lose 20 * 50 = 1000. But if his broker gives him 4 times exposure and if he trades for 4 lots …and if the trade goes wrong, he would have lost 200 * 20 = 4000. Means his risk become four time more and it reduces his capital from 35 k to 31 k only …more than 11% loss. Of course, one may argue that if the trade goes in his favor, he would have earned more due to large size of position. But this may lead to conversion of trading into gambling in the long run. And at that time he will lose more and more due to over trading, getting not any help from any side. The market has no mercy for any mistake made by the trader.
The disciplinary rule says:
“Don't judge the success of anyone in the trade by the amount of money he has made. Judge the success by his trading strategy. Money can get made and vanish in the blink of an eye. A good strategy stays with you for a long period of time and success becomes enduring.”
Today most of the young traders have got such type of mentality to over trade with only token money, but mostly 90% failed in such trading. The pity is that they even do not accept the reality, but go on finding excuses. When they get success, their feelings for winning become so much powerful that they lose control for taking new right decisions for the new trades and ultimately wipe out their entire capital funds only due to over trading.
Failing to treat each trade as new one:
Every trade should be considered new trade and only normal profits should be expected from that new trade. Generally after losing money in the first trade of the day, an undisciplined trader expects some more profits over and above his loss incurred in the next trade. Say if he loses Rs.1000 in the first trade, for the second trade, his expectations become to earn more than Rs.1000/- without considering the exposure and price movement trend whereas in real sense the normal profit would be less than Rs.1000….And here he fails by joining new trade with the old one.
Every trade is to be considered new independent trade and only normal profits should be expected every time. Super normal profits should be considered as bonus when they occur, but should not be expected every time.
Over eargerness in booking profits:
Traders should not be over eager to book profits so long as the market is acting right in favor of
Trade. Most of the traders tend to book profits too early in order to enjoy the winning feelings, and thereby letting go substantial trends even when they have got a good entry. If at all, profit booking should be done in stages, always keeping some position open to take the advantage of the rest of the trend. A disciplined and determined trader knows : “His trading should consist of small profits, small losses and big profits….and big losses must be avoided.”
Lack of self confidence and self judgement:
Lack of self confidence mostly shakes the faith of the trader for his decision. Being ignorant of technical knowledge and other disciplinary rules, generally traders have tendency to wonder for better trading system, better scrips, better trades. They go on asking for trades to their relatives, friends etc. go on hearing media, go on reading tips in newspapers, magazines, web sites etc. And all these noise create confusion in traders’ mind, do not allow them to take right decision at right time, in short creates psychological pressure which ultimately result into losses either due to fear or greed factor.
In fact a trader should not talk to a lot of people during the trading hours. He can talk to experienced traders, but after market hours, and talk should be for methodology instead of individual trade. And such talk will improve his trading ability in the long run. In short, a disciplined trader fully follows the Disciplinary Rules of Three Monkeys……of Mahatma Gandhiji.
Do not hear evils
Do not see evils
Do not speak evils.
Following the disciplinary rules, a trader should constantly try to improve his trading skill. By trading skill I mean not only charting skill, but also position sizing and money management skills. 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 much volatile or choppy. He accept this truth of maket.
He never blames the market …whatever the result market may give him, particularly in the case of losses. For him Market is supreme…..and Price is God. He accepts the market and price as it is. Even if he incurs losses in some trades, he believes that negative results arise due to his own faults, and not because of market. And such acceptance creates faith - fearlessness sooner or later in his mind and results in gaining in the long run.
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Teacher : Gauresh, i advise you
Teacher : U must trade tomorrow
gauresh59: BN or NF...?
Teacher : Both
Teacher : Treat tomorrow as a normal day
Teacher : U r following technicals
Teacher : And with good decipline
Teacher : Don't worry nothing will happen
Teacher : U will earn highest tomorrow i think you should trade as normal day
gauresh59:Sir, but what about the clients..if they incur losses along with me...? That is not good for them....they may not execute discipline
Teacher : But u personally
Teacher : Do that
gauresh59:yes...sir, that is possible ...but should not put messages for the trade taken as ususal...
Teacher : Ha
Teacher : That's ok
gauresh59: or clients should be informed to paper trade or trade at their own risk....if i put messages
Teacher : But don't think budget will incurs loss
gauresh59: so that they can learn
Teacher : Yes u should inform that its risky day
Teacher : But u do trade
Teacher : Without hesitation....without any fear ....and why to fear....dear.
Teacher : You are far away from any fear....In past you have shown our fearlessness too.
gauresh59: Ok....
gauresh59: will do that and follow your advice
Teacher : Just remember your old days ...how you come out from that.....Be bold....only bold.
gauresh59: yes....
Teacher : Follow ur technicals as usual
gauresh59: yes .....all will be reflected in price and there by in levels ....
gauresh59: will do so
Teacher : Fine
