WiseMan Trading

 So we will talk about the things which have been holding you back in next few blogs coming in next months taking each specific problem at one time  -  1. Cut winning trades short even though you know your trade setup is solid. 2. Failed to pull the trigger on a perfectly good trade because of fear of loss. 3. Let losing trades run hoping for a return to breakeven. 4. Added to a losing position in the hope that the market would turn around. 5. Made profits in the morning but gave them back in the afternoon. 6. Became more aggressive after losing money. 7. Took unplanned trades when the market suddenly moved. 8. Stopped trading or reduced position size after a loss. 9. Traded greater position size than prudent money management practice would advise 10. Held trades longer than they should have been held looking for a “home run.” 11. Failed to take a perfectly sound setup because the last two trades were losers. 12. After a day of big profits, your confidence soared and your trading suffe

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

  Putting this blog with another last month PNL - not been able to trade much but tried to do whenever possible, the Personal Training groups size also got reduced and batches got shut down, but overall being a green month at the net which came with lots of learnings below are some I have put.  I've never seen a trader succeed whose explicit or implicit goal was to not lose. The trader who trades to not lose is like the person who lives to avoid death: both become spiritual hypochondriacs.  How can traders reduce their level of performance anxiety? Here are a few strategies that I have found to be effective : Focus on process goals when thinking about trading, rather than profits/losses – Traders like to set goals for themselves, yet often as not, monetary goals end up creating unnecessary pressures. More effective goals are ones that focus on the process of trading, such as limiting losses to two ticks if you’re a scalper or holding trades until a trailing stop is hit. A nice min

  Would you like to become a trader? At WISEMANTRADING   we don’t believe this is possible through just purchasing a course / Mentorship Programme. The road to trading success is a long, hard, winding road, with many potholes, false turns, and dead-ends. Sorry, but that’s a fact. There is no Holy-Grail trading solution  Just as peak performance in sport requires years of exposure to the sport, trading success comes from years of exposure to the markets, allowing constant improvement in the trader’s ability to read changes in market sentiment and react without fear, what we do at WISEMANTRADING  is to reduce your time and money spent on the market and keep you ahead 4-6 years ahead in Trading career.  Disciplined application of the following steps will get you off to a great start to becoming a trader. Please print it out and get started from step one immediately. And as you travel along this long journey to profitability, don’t forget to enjoy the process and marvel at the complexity o

  If you‟ve noticed the small number of pages in this blog, you may suspect that this is not the Greatest Trading Book – Ever! And you‟d be correct. But don‟t worry; there‟s a simple explanation. This blog will explain exactly how you can create The Greatest Trading Book – Ever! You see, it‟s not a book you can buy. It‟s something you create. Let me explain…

  Impulsiveness -Replace impulsiveness with proven rules that filter emotions into the correct actions.  Impatience -Replace market noise and emotions with quantified entries and exits based on signals.  Anger -Replace animosity towards the market with respect for price action and emotionless trading.  Uncertainty -Accept the randomness of short term results and embrace the long term edge.  Laziness -Reduce stress by doing homework when the market is closed so you can be ready when the market is open.  Greed -Replace the need for immediate wins with a process for consistently growing capital.  Fear -Replace your fear of failure with confidence in your system and your ability to follow it successfully.  Ego -Replace your need to be right about specific trades with the desire to make money.  Hope -Replace the hope that a losing trade will recover with a well-planned stop loss. Stress -Reduce stress by choosing to have small losses fast instead of big, slow losses. ＞＞ ＞Profitable traders

Filter out the noise The signal is the truth. The noise is what distracts us from the truth. – Nate Silver.   As a trader, you are dealing with two types of information, signals and noise. Signals are meaningful pieces of information that cause traders to take action when the odds are in their favor. Signals are things that traders look for; technical buy signals, sell signals, or psychological signals like the market going up on bad news or down on good news, for example. The noise is all the price action, news, predictions, opinions, projections, and forecasts that add no value to your trading. Your ability to filter out the unnecessary and focus on the important things is what will keep you calm while other traders are suffering a psychological downtrend. You have to identify what type of information is meaningful to you. What are your signals? If your trading is only done at the end of the day, then intra-day price action may just be noise for you. Talking heads on financial news n

Managing uncertainty      Speculation is dealing with the uncertain conditions of the unknown future. Every human action is a speculation in that it’s embedded in the flux of time. —Ludwig von Mises We must accept the randomness of our short term results, and understand our long term edge to stay calm in the face of uncertainty. Traders are entrepreneurs.They don’t trade for a regular paycheck, but they exchange that uncertainty for the potential of unlimited profits. New traders have a difficult time coming to grips with the uncertainty of the markets. It’s hard for them to accept short term losses on the path to long term profitability. There  are no guarantees in trading, only probabilities and possibilities.The more unknowns you can remove from your trading, the lower your stress level will be. One of the most powerful things a trader can do to become calm is to limit their losses on a single trade. This is accomplished by limiting any one trad

How is a Trade Developed ??   Trade Development You might have read a lot about the process of Trader Development.There are tons of materials available all over the internet. As always, I have a very simple approach to this subject also. In my humble opinion there are only three stages in trader development.You need to negotiate two slippery slopes and a plateau. These stages are Structure, Tactics and Action.

  Reality of Stock Market Reality of the Stock Market Majority of the traders fail because they do not understand the reality of the market.Most of us are not even playing the right game. Materials available over the net and the books written by failed traders teach technical analysis patterns and indicator based signals and we assume this is the reality.   The indicator based TA signals and price patterns are illusions. These are only effects. Cause is something else. Then what is the cause? Price .Indicators and patterns are derivatives of price. Then price is the cause and TA patterns the effect.So we need to focus on price.   Do not reach a conclusion so fast. Price is another effect and there is something that makes prices move in markets. What it is? It is the order flow. Orders make the market move. If the net order flow is on the buy side market will go up. If net order flow is on the sell side market will drift down. Then order flow is the real thing that moves the market. Oh

Trading Revolutions and story of 6 Blind men Trading Revolutions My great seniors first exposure to the Stock market was as early as (1987-95). For the last (25-33) years they were in the market either as a buy and hold investor or as a trader. Earlier, trading for a living in Indian market was only a dream. Exchange membership was confined to a group of brokers. They controlled and manipulated everything. There was no transparency and proper price information. Investors always ended up buying at the days high and selling at the low of the day. There was no way to monitor intraday moves and change the orders during the day. Commission was as high as 2%,During market falls investors were not able to get out as the brokers did not accept the orders. Their first priority was to get out of their own positions. Then the first Stock market revolution happened. National Stock Exchange started operation in 1994. Floor based trading gave way to transparent electronic trading. Investors and tr

The art of self control It’s hard enough to know what the market is going to do; if you don’t know what you are going to do, the game is lost. – Alexander Elder, The New Trading for a Living. In the late 1960s and early 1970s, studies by Stanford University demonstrated that being patient and exercising self-control are important factors in our success and happiness. The researchers performed tests in delayed gratification by giving children a choice between an immediate reward like a marshmallow, cookie, or pretzel or waiting for 15 minutes and getting two rewards.   Stanford researchers found that children who were able to wait and not eat the initial treat and receive the additional reward, went on to be more successful in life. They had higher SAT scores, better educational achievement, and lower body mass index scores. This study shows the power of impulse control. If you pass on immediate gratification and exercise self-control, you will likely experience a larger reward in the f