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

1. Having no plan An investor with no plan does not know what he wants. Investments are made in order to finance or accomplish something. In order to be able to invest in a proper manner, an investor should know what he is trying to achieve. He needs to have a reason he is investing for. For some investors this may be for the retirement, for some it may be the education of the children, but there are also who are willing to invest for the short-term goals such as a vacation. Having a plan helps the investor to decide in what type of securities he must invest in, how long he should invest and how much he should invest in order to get the expected return that he wants.    6 financial planning mistakes that can change life 2. Going with the market trend Some investors give too much importance to what is written in financial media. They almost always refer the Financial news before making any investment. By investing in this so-called fashionable securities, investors fall into a trap of s

  Since our childhood, we have been taught to be forward thinking and we have always been asked to plan long term. Don’t you think that our parents started planning before we came into this world? While we were enjoying our kindergarten days, our parents planned long term. Starting from, which school we step into to our higher education. From our marriage plans to their own retirement plans. Basis the long term investment plans, they made our future secure. They enjoyed the happiness of their family, in return for their look-ahead approach and long-term investment goals. In this article, we will understand as to how long-term investments serve us future security and much more. ---------------------------------------------------------------------------------------------------------------------------- What is long term investment? Long term investments means holding assets such as stocks, shares or securities etc for more than a year. Usually, the long-term investments means holding the

This article is about the basics of portfolio diversification. If you want to get a more comprehensive idea of portfolio diversification. People may have huge resources at their disposal deployed in a particular asset class. For Example, Mr. Alex had a huge amount of funds which he decided to invest only in real estate.  Accordingly, he pooled a large amount of funds in the real estate market. In a couple of years,  he gained multiple amounts of returns from the investment made and therefore continued to invest in that particular asset class. He was contended without diversifying his portfolio. What if that particular asset class suddenly starts showing a bad result? What if the market does not respond well to that asset class? What if Mr. Alex had a cash crunch and liquidity becomes an issue? Like Mr. Alex, there are several investors who are unwilling or are not aware of the benefits of portfolio diversification. To resolve all the above-mentioned queries and to make the investors un

 Mistake 1 – Waiting for the so-called “right time” for investing in financial markets During our school or college days, when we are financially dependent on our parents, we think that we will invest soon when we get our first salary. On getting our first salary, we think that it is the time to rejoice the perks of all the hardships, so we treat ourselves with the best of luxury. We all know that money is what money does. Gone is the first salary and then year after year, since we get addicted to the luxury, we end up complaining that we do not have much left in hand after expending. Well. If you are spending before saving, then obviously you have no amount of savings in your hand at the end of the month. You promise to yourself that you will start investing as soon as there is salary hike. Salary increases, but you never save. Eventually in the early 30’s, when you face the boredom of responsibility you wish you would have saved at the “right time” That right time was soon after you

 Traders often go through periodic up and down phases in stock market, but if it occurs on a frequent basis, they should introspect and try to find out the reason for the same. It may so happen that they might ride on beginner’s luck at the start of their trading career, but soon law of average will likely kick in and if they are not disciplined, they may lose quite a lot of money. In such scenarios, instead of getting depressed or cursing the market, traders should spend time in figuring out their weaknesses, improve their knowledge and become more disciplined. Many people consider trading stocks to be the simplest way of making money but it often comes out be the easiest and fastest way of losing money. Also, often you might have heard an analyst discussing on news channels that market is making new highs but you may wonder that your portfolio is not performing the same and rather end up in losses. Today you will get to understand the 5 important reasons why most traders lose money w