Skip to main content

Could This Be The “Huge Winning Trade” You’ve Been Dreaming Of?

 

 It’s why we all signed up for the battle against the markets. 

In the beginning, we read an article or saw a sales leaflet about a guy who took his last few dollars and parlayed it into millions in the markets. 

 It usually involved a simple secret that when revealed to you (for a few hundred dollars), you could have the same success. 

Most of the time, we would chuck the article/leaflet into the trash as garbage, but at some low ebb in our psyche, the article read like the answer to our prayers. 

 

Most of us joined the fray for the “big hit”. 

 Whether we 1-2-3-counted with Ken Roberts, waved with Prechter, seasoned with Bernstein, or banded with Bollinger, we all soon realized that if we were going to stay in the game, we needed something more than desire and a dream… 

 We needed a back-tested system that we could have confidence in. 

 We realized that we needed to take our emotions out of trading and look at trading like a professional…like a job. 

 Now, that doesn’t mean we can’t have fun, because winning traders enjoy their jobs like no others. 

 So, we either adopted a guru, inspected his archives of trades (that’s back-testing, right?) and watched him/her live for a while before jumping in, or we bought software to test a system we thought could work. 

Our system in hand, we saddle up to the computer. 

 

We have stops to defend against losing too much in one trade and we have limits to make sure we take our profits when our system tells us to. 

 

After a mix of trades over the first few weeks, we hit on a big one. 

 

The news confirms that we are geniuses and we are quickly heading to our profit target. 

 

In fact, we’re just ticks away. Hey, this heat wave is bigger than anyone expected. There’s no way beans (or that stock or currency) are NOT going to the teens! 

 

“I’ll lift my limit and keep my eye on it.” 

 

Market closes 5 cents above the (former) profit target. 

 

“I’m getting good at this. I’m really developing a market ‘sense’.” 

 

You decide you’ll put a stop right at your (former) profit target, so that if the market backs off, you’ll take your profit where you were going to anyway. 

 (OK, reader, you know what’s coming). 

 Rain in the plains overnight. 

 Nifty open 200 lower. Stopped out. 

 Your genius turned a nice winner into a nice loser.   What happened? 

 

The same thing that happened when you read that original ad that got you involved in all of this… You let your emotions take over. 

 If you’re still trading after a few years, it either means you have very deep pockets or you’ve learned to control your emotions and take the profit your system tells you to. 

 You’re going to need them to overcome all the losses …and become the winner you know you can be. 

👉 TRADING IS NOT A TEAM GAME , YOU NEED TO BE ALONE IN THIS HAVING A GOOD MENTOR IS LIKE HAVING AN EDGE OVER OTHER BEGINNERS < YOU CAN ALWAYS LEARN FROM MISTEAKES BETTER TO LEARN FROM OTHERS MISTAKES MAYBE YOU CANT AFFORD THE LOSSES . 

#Octoberbatchesopen WhatsApp - 9773770675 | Instagram - wisemantrading


Labels:

Comments

Post a Comment

Popular posts from this blog

THE 25 - POINT MANTRA DISCIPLINE FOR DAY TRADING

The Wheel of Success in Trading  There are three spokes that make up, what I call the Wheel of Success as it relates to trading.   The first spoke is content Content consists of all the external and internal market information that traders utilize to make their trading decisions. All traders must purchase value-added content that provides utility in making their trading decisions. The most important content being internal market information , which is simply time and price information as disseminated by the exchanges. As we are making our trading decisions in present time based on time and price, In order to "scalp" the markets effectively, we must have the most live up-to-date information . The second spoke is mechanics Mechanics is how you access the markets and the methodology that you employ to enter/exit your trades. You must master mechanics before you can enjoy any success as a trader. A simple keystroke error can result in a loss of thousands . A trader can ruin his e
Post a Comment
Read more

Exit Beliefs -

we considered a few questions: Should we use a tight stop loss to cut any losses quickly or a wide stop loss to allow some room to move? How quickly should we move the stop loss to breakeven? Should we take profits at a target, or should we let the profits run, perhaps trailing a stop behind the price? In attempting to answer these questions we looked at a number of charts, chose entry criteria, and then looked at possible options for the exit. And this is what we discovered: Firstly, in each case, the profit or loss taken out of the trade was more a result of our chosen stop and exit method, not our entry. For the same entry, there were numerous possible exits, some profitable, some breakeven, and some at a loss. And secondly, we cannot know, except with hindsight, what will be the most profitable exit strategy for that particular trade. In other words - the exit is more important than the entry. The exit has more bearing on whether the trade ends in profit, or in the loss. But there
Post a Comment
Read more

Pre Stock Market Report, September 04, 2020

  Pre Stock Market Report US markets tubled. Nasdaq down more than 5%. For the last two weeks, US markets kept moving higher. Today, very important data, Jobs data, is due. So markets were over bought, ahead of a key data, profit booking came. But the profit booking is so severe that Nasdaq has fallen more than 5%. We have already seen 2 such profit booking in last one month. Last month, Nifty fell from 11400 to 11100 intraday. Last Monday, Nifty fell from 11800 to 11350 intraday. When it comes to correction or crash, we always do first. Even in 2008, we fell in January, way before other markets. Today's data on Jobs is expected to be good but Private Sector Jobs data that came on Wednesday was not good as expected. That could be one reason for such a huge profit booking. Moreover, when real Economy opens up, money should move from new Economy stocks to old Economy stocks. Going forward, Dow is likely to do better than Nasdaq. But Asian markets are not reacting as bad as US. Even D
Post a Comment
Read more