Dear All,
On the ocassion of New Year , get free trading calls for one week. Kindly send your request to equitychartguru@yahoo.co.in.
For Trading calls and Nifty analysis please visit www.equitychartguru.blogspot.com
For portfolio management advice please visit http://www.fundootechnicals.blogspot.com/
For getting portfolio management advice and trading and investments calls please mail to me at equitychartguru@yahoo.co.in or fundootechnicals@yahoo.co.in
Thanks & happy trading
your's zandu
Thursday, December 25, 2008
Wednesday, December 17, 2008
Common Trading Mistakes!!!!!!!!!!!!!!!!
Dear All,
I would like to talk about 10 common mistakes in trading. New traders are often unaware of what is required in trading and the bad habits that can lead to financial suicide.
1. Under capitalization – One of the first mistake I made when beginning to trade was being under capitalized. I started with a Rs.10K account without any idea on how to trade. You need enough capital to learn and gain the experience. Some like to call the initial stake "market tuition." If you can avoid paying your dues, great for you. But most new traders will lose their money. Just make sure you learn from every loss.
2. Having the approach to trading as a "learn as you trade" – Big mistake. "Learn as you trade" = losing money. Losing money can lead to emotional and financial stress and may even create enough fear in you making it hard to trade. Make sure you come prepared to the battlefield. Be a strategist. Sun Tzu said, "The battle is won before it is fought." Think about it.
3. Trading as a hobby – Take a look at your hobbies. Do they make money? Hobbies in general are entertainment that cost money. Do not approach trading as a hobby. Treat it like a business. Develop a business plan, have goals, and understand what you want out of trading.
4. Thinking that you know it all – The moment one thinks he knows it all is the moment he has become a fool. Its impossible to know everything about the markets. This is a lifetime learning process. Find your niche, find your speciality and be an expert in it. In other words, find your edge. One thing I learned in trading is that niche = money.
5. Trading without a plan – One of the worst things you can do as a trader is to trade without a plan. Trading without a plan is like driving in a new area without a map or a navigation system. You are lost.
6. Not following your trading plan – Okay so now you have a trading plan. Why don't you just follow it? A common mistake among traders is not following a developed trading plan. This leads to impulse trading or emotional trading.
7. Wanting to be right – Are you trying to be right? Or are you trying to make money? This is a hard one… I personally have to battle myself to avoid this bad habit. Our egos interupt with our trading and we tend to want to prove something to ourself or someone else. The markets do not care what you think. You are in it to make money.
8. Money Management – Strict money management is a necessity. Set your risk parameters for all your trading setups. A common rule is to risk no more than 2% on one trade. I prefer 1%. Being long 10 different stocks at 2% risk per trade is not a good idea. In fact you are risking 20%. Know your size and do not double up your position after a series of losses. Be a grinder and not a cowboy.
9. Have realistic goals – Too many traders come into this arena without unrealistic goals. Questions like "Can I make a million my first year with a Rs.10k account?" Sure you can, but is that really realistic? Focus on crafting your trading. When you know how to trade the money will flow naturally.
10. Not analyzing yourself and your trades – This a poker habit I have. I tend to analyze every losing and winning hand to learn from it. Traders need to do the same and analyze every trade. Think about it after the trading hours and focus on what you can do to improve. Trading is a constant journey of soul searching as well. Understand yourself and you will significantly improve your trading.
For Nifty Analysis please visit www.zandusmartchartcalls.blogspot.com
For portfolio management advice please visit http://www.fundootechnicals.blogspot.com/
For getting portfolio management advice and trading and investments calls please mail to me at equitychartguru@yahoo.co.in or fundootechnicals@yahoo.co.in
Thanks & happy trading
your's zandu
I would like to talk about 10 common mistakes in trading. New traders are often unaware of what is required in trading and the bad habits that can lead to financial suicide.
1. Under capitalization – One of the first mistake I made when beginning to trade was being under capitalized. I started with a Rs.10K account without any idea on how to trade. You need enough capital to learn and gain the experience. Some like to call the initial stake "market tuition." If you can avoid paying your dues, great for you. But most new traders will lose their money. Just make sure you learn from every loss.
2. Having the approach to trading as a "learn as you trade" – Big mistake. "Learn as you trade" = losing money. Losing money can lead to emotional and financial stress and may even create enough fear in you making it hard to trade. Make sure you come prepared to the battlefield. Be a strategist. Sun Tzu said, "The battle is won before it is fought." Think about it.
3. Trading as a hobby – Take a look at your hobbies. Do they make money? Hobbies in general are entertainment that cost money. Do not approach trading as a hobby. Treat it like a business. Develop a business plan, have goals, and understand what you want out of trading.
4. Thinking that you know it all – The moment one thinks he knows it all is the moment he has become a fool. Its impossible to know everything about the markets. This is a lifetime learning process. Find your niche, find your speciality and be an expert in it. In other words, find your edge. One thing I learned in trading is that niche = money.
5. Trading without a plan – One of the worst things you can do as a trader is to trade without a plan. Trading without a plan is like driving in a new area without a map or a navigation system. You are lost.
6. Not following your trading plan – Okay so now you have a trading plan. Why don't you just follow it? A common mistake among traders is not following a developed trading plan. This leads to impulse trading or emotional trading.
7. Wanting to be right – Are you trying to be right? Or are you trying to make money? This is a hard one… I personally have to battle myself to avoid this bad habit. Our egos interupt with our trading and we tend to want to prove something to ourself or someone else. The markets do not care what you think. You are in it to make money.
8. Money Management – Strict money management is a necessity. Set your risk parameters for all your trading setups. A common rule is to risk no more than 2% on one trade. I prefer 1%. Being long 10 different stocks at 2% risk per trade is not a good idea. In fact you are risking 20%. Know your size and do not double up your position after a series of losses. Be a grinder and not a cowboy.
9. Have realistic goals – Too many traders come into this arena without unrealistic goals. Questions like "Can I make a million my first year with a Rs.10k account?" Sure you can, but is that really realistic? Focus on crafting your trading. When you know how to trade the money will flow naturally.
10. Not analyzing yourself and your trades – This a poker habit I have. I tend to analyze every losing and winning hand to learn from it. Traders need to do the same and analyze every trade. Think about it after the trading hours and focus on what you can do to improve. Trading is a constant journey of soul searching as well. Understand yourself and you will significantly improve your trading.
For Nifty Analysis please visit www.zandusmartchartcalls.blogspot.com
For portfolio management advice please visit http://www.fundootechnicals.blogspot.com/
For getting portfolio management advice and trading and investments calls please mail to me at equitychartguru@yahoo.co.in or fundootechnicals@yahoo.co.in
Thanks & happy trading
your's zandu
Wednesday, December 10, 2008
Nifty target 2850 achived !!!!!!!!!!!!!!!
Dear All,
In our 30th NOV Post we have advice you to go long at 2750 and given target of 2850---3050 with stoploss at 2625 on closing basis , we even told you that we are not in favour of shorts ........... please check the post http://zandusmartchartcalls.blogspot.com/2008/11/market-outlook-on-broder-basis_30.html
we have also remind you to stay long in our 4 DEC Post , please check the post http://zandusmartchartcalls.blogspot.com/2008/12/nifty-levels-bang-on-target.htmlToday we have handsomely achievd our target of 2850 on closing basis .Now what next zandu try to answer
1.For those who have acted on our advice and initiated long at 2750 , stay in in move with trailing stoploss placed at 2850 ( even if it comes at intra day level) , next target is 3050.Any close above 3050 with volumes can set the target 3250-3400 range
2.For those who want to go short, go short in range of 3050-3250 (if come) put stoploss at 3380 on closing basis , please note this is only adviceable to risky traders.
Note : For positional traders nifty support at 2850, 2680,2500 and ristance at 3050,3250,3500 close above 3050 with volume will set the target 3250-3450 range
For technical trading calls please visit ttp://www.equitychartguru.blogspot.com/
For portfolio management advice please visit http://www.fundootechnicals.blogspot.com/
For getting portfolio management advice and trading and investments calls please mail to me at equitychartguru@yahoo.co.in or fundootechnicals@yahoo.co.in
Thanks & happy trading
your's zandu
In our 30th NOV Post we have advice you to go long at 2750 and given target of 2850---3050 with stoploss at 2625 on closing basis , we even told you that we are not in favour of shorts ........... please check the post http://zandusmartchartcalls.blogspot.com/2008/11/market-outlook-on-broder-basis_30.html
we have also remind you to stay long in our 4 DEC Post , please check the post http://zandusmartchartcalls.blogspot.com/2008/12/nifty-levels-bang-on-target.htmlToday we have handsomely achievd our target of 2850 on closing basis .Now what next zandu try to answer
1.For those who have acted on our advice and initiated long at 2750 , stay in in move with trailing stoploss placed at 2850 ( even if it comes at intra day level) , next target is 3050.Any close above 3050 with volumes can set the target 3250-3400 range
2.For those who want to go short, go short in range of 3050-3250 (if come) put stoploss at 3380 on closing basis , please note this is only adviceable to risky traders.
Note : For positional traders nifty support at 2850, 2680,2500 and ristance at 3050,3250,3500 close above 3050 with volume will set the target 3250-3450 range
For technical trading calls please visit ttp://www.equitychartguru.blogspot.com/
For portfolio management advice please visit http://www.fundootechnicals.blogspot.com/
For getting portfolio management advice and trading and investments calls please mail to me at equitychartguru@yahoo.co.in or fundootechnicals@yahoo.co.in
Thanks & happy trading
your's zandu
Monday, December 8, 2008
Trading Rules !!!!!!!!!!!!!! for greater success in your trading positions
Dear All,
To enchance your trading ,we are sharing some trading rules , what we believe it will help the traders to trade better and accurate .
1.Never risk more than 10% of your trading capital in a single trade.
2.Always use stop loss orders.( Here you should know your loss you can give in a situation where the trade starts going against you.)
3.Never do overtrading.
4.Never let a profit run into a loss.
5.Don't enter a trade if you are unsure of the trend.
6.When in doubt, get out, and don't get in when in doubt.
7.Only trade active markets.
8.Distribute your risks equally among different markets.
9.Never limit your orders. Trade at the markets.
10.Extra monies from successful trades should be placed in a separate account.
11.Never trade to scalp a profit.
12.Never average a loss.
13.Never get out of the market because you have lost patience, or get in because you are anxiously waiting.
14.Avoid taking small profits and large losses.
15.Never cancel a stop loss after you have placed it.
16.Avoid getting in and out of the market too soon.
17.Be willing to make money from both sides of the market.
18.Never buy or sell just because the price is low or high.
19.Never hedge a losing position.
20.Never change your position without a good reason.
21.Avoid trading after long periods of success or failure.
22.Don't try to guess tops or bottoms.
23.Don't follow a blind man's advice.
24.Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.
25.When you lose don't blame it on luck.
Hope these trading rules will help you to trade better and in more accurate and responsible manner.
For technical trading calls please visit ttp://www.equitychartguru.blogspot.com/
For portfolio management advice please visit http://www.fundootechnicals.blogspot.com/
For getting portfolio management advice and trading and investments calls please mail to me at equitychartguru@yahoo.co.in or fundootechnicals@yahoo.co.in
Thanks & happy trading
your's zandu
To enchance your trading ,we are sharing some trading rules , what we believe it will help the traders to trade better and accurate .
1.Never risk more than 10% of your trading capital in a single trade.
2.Always use stop loss orders.( Here you should know your loss you can give in a situation where the trade starts going against you.)
3.Never do overtrading.
4.Never let a profit run into a loss.
5.Don't enter a trade if you are unsure of the trend.
6.When in doubt, get out, and don't get in when in doubt.
7.Only trade active markets.
8.Distribute your risks equally among different markets.
9.Never limit your orders. Trade at the markets.
10.Extra monies from successful trades should be placed in a separate account.
11.Never trade to scalp a profit.
12.Never average a loss.
13.Never get out of the market because you have lost patience, or get in because you are anxiously waiting.
14.Avoid taking small profits and large losses.
15.Never cancel a stop loss after you have placed it.
16.Avoid getting in and out of the market too soon.
17.Be willing to make money from both sides of the market.
18.Never buy or sell just because the price is low or high.
19.Never hedge a losing position.
20.Never change your position without a good reason.
21.Avoid trading after long periods of success or failure.
22.Don't try to guess tops or bottoms.
23.Don't follow a blind man's advice.
24.Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.
25.When you lose don't blame it on luck.
Hope these trading rules will help you to trade better and in more accurate and responsible manner.
For technical trading calls please visit ttp://www.equitychartguru.blogspot.com/
For portfolio management advice please visit http://www.fundootechnicals.blogspot.com/
For getting portfolio management advice and trading and investments calls please mail to me at equitychartguru@yahoo.co.in or fundootechnicals@yahoo.co.in
Thanks & happy trading
your's zandu
Saturday, December 6, 2008
We are back !!!!!!!!!!How to Stay Focused During Volatile Markets
Dear All,
Due to some reason we were not able to post for quite a long time , now we are back , as you know market now a days are quite volatile and very difficult to trade , we are sharing some trading idea with you , so you as a trader you can take more responsible and more proactive decesion regarding your trade.
With markets having their biggest turbulences, how are you handling your trading? :
These days, we are witnessing the common modes of operation: Fear and Panic. People are worried about their future. They are thinking, "How can I pay my mortgage, my children's college expenses and what is happening to my retirement account?"
The uncertainty is uncomfortable. Some feel that the devil they know is better than the one they don't know. The majority can't deal with volatility and that is why they have given their money to others to invest. If they have invested themselves, it is in mutual funds or long-term investstments. Because they are not comfortable with the high volatility, they are flying to cash and we are seeing all the redemptions...
These are challenging times. What are your options in these markets?
1.Know your Emotional Risk Profile (ERP) :
This is about knowing who you are and how you react under different market conditions. It is about finding out if your ERP matches the strategies that you have in place.
If market conditions make you uncomfortable, the tension is too much for you and it is impacting your health, at the first chance, get out of the market.
This will give you an option to match your ERP with your strategies so you can get much better results.
Donald Trump says, "Sometimes by losing a battle, you find a new way to win the war."
2.Lessen your Input :
These days, everybody is talking about the markets and how it is impacting their lives. Limit the amount of your conversations and filter the information you are hearing or reading. Don't be glued to the TV and the internet. You need to be aware, but make sure that you listen to the people that you respect.
When you immerse yourself in the negative news, it is hard to stand aside and make objective decisions based on your desired goals.
There is a quote by Warren Buffett that "A public-opinion poll is no substitute for thought."
3.Manage your Expectation :
Frustration comes when we have unmet expectations. We assume that we should have a crystal ball and know what is going to happen. Worse, we think, "How come markets do these things to us?"
The truth of the matter is that the markets are neutral and they do not care. It is about us and what our expectations of the markets are.
Epictetus has a saying: "We are not troubled by things themselves, but by our thoughts about them."
4.Be Flexible :
When you notice the market changes, ask yourself if the assumptions that you entered the trade, are still valid. If they aren't, then get out of the trade
When you do, you give yourself a chance to think clearly and come from a more objective place.
James Dean says, "I can't change the direction of the wind, but I can adjust my sails to always reach my destination."
5.Manage your Energy :
Where is your focus? Are you focusing on the challenges or on the solutions? Do the activities that you are involved in energize you or drain you?
Who are the people around you? Do you feel more inspired or discouraged after spending time with them?
It is up to you where you put your focus. Remember, when you have less energy, you are drained and when you are drained, you can't think objectively.
If you don't mange your energy and set boundaries, others will do it for you.
Due to some reason we were not able to post for quite a long time , now we are back , as you know market now a days are quite volatile and very difficult to trade , we are sharing some trading idea with you , so you as a trader you can take more responsible and more proactive decesion regarding your trade.
With markets having their biggest turbulences, how are you handling your trading? :
These days, we are witnessing the common modes of operation: Fear and Panic. People are worried about their future. They are thinking, "How can I pay my mortgage, my children's college expenses and what is happening to my retirement account?"
The uncertainty is uncomfortable. Some feel that the devil they know is better than the one they don't know. The majority can't deal with volatility and that is why they have given their money to others to invest. If they have invested themselves, it is in mutual funds or long-term investstments. Because they are not comfortable with the high volatility, they are flying to cash and we are seeing all the redemptions...
These are challenging times. What are your options in these markets?
1.Know your Emotional Risk Profile (ERP) :
This is about knowing who you are and how you react under different market conditions. It is about finding out if your ERP matches the strategies that you have in place.
If market conditions make you uncomfortable, the tension is too much for you and it is impacting your health, at the first chance, get out of the market.
This will give you an option to match your ERP with your strategies so you can get much better results.
Donald Trump says, "Sometimes by losing a battle, you find a new way to win the war."
2.Lessen your Input :
These days, everybody is talking about the markets and how it is impacting their lives. Limit the amount of your conversations and filter the information you are hearing or reading. Don't be glued to the TV and the internet. You need to be aware, but make sure that you listen to the people that you respect.
When you immerse yourself in the negative news, it is hard to stand aside and make objective decisions based on your desired goals.
There is a quote by Warren Buffett that "A public-opinion poll is no substitute for thought."
3.Manage your Expectation :
Frustration comes when we have unmet expectations. We assume that we should have a crystal ball and know what is going to happen. Worse, we think, "How come markets do these things to us?"
The truth of the matter is that the markets are neutral and they do not care. It is about us and what our expectations of the markets are.
Epictetus has a saying: "We are not troubled by things themselves, but by our thoughts about them."
4.Be Flexible :
When you notice the market changes, ask yourself if the assumptions that you entered the trade, are still valid. If they aren't, then get out of the trade
When you do, you give yourself a chance to think clearly and come from a more objective place.
James Dean says, "I can't change the direction of the wind, but I can adjust my sails to always reach my destination."
5.Manage your Energy :
Where is your focus? Are you focusing on the challenges or on the solutions? Do the activities that you are involved in energize you or drain you?
Who are the people around you? Do you feel more inspired or discouraged after spending time with them?
It is up to you where you put your focus. Remember, when you have less energy, you are drained and when you are drained, you can't think objectively.
If you don't mange your energy and set boundaries, others will do it for you.
Hope these trading ideas will help you to trade better and in more responsible manner
Thanks & happy trading
your's zandu
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