I am Back with new and also most important information to become Successful Trader/Investor.
Before few days, Mr. Pratik Patel CEO has shared “The Less the Knowledge the more is the Tution fees” – It take nearly 14 years for person to complete his schooling, there after to be doctor , one need 6 more years, 3-4 years for completing bachelor’s degree, further it would required 2-3 years for post graduate course, then only one decides to work & earn, It means that after losing 1/4th of total lifespan, one plans to earn,but For Trader , The day he trade it can be the very 1st day – He wants to earn, But without any formal knowledge or mentor, there are only remote chances to succeed as trader/investor. As I have seen mass people , i realized that we spend too much money on food , clothes , luxuries & child education but when it come to attaining financial knowledge , We tend to avoid it ! Mr Robin sharma once told (famous coach) ” Learn more to Earn More” #beinmoent – actionableidea
# See the Power of discipline in investing / trading ! Must watch the video.
#knowledge : How the Traders / Investors work in Market. :
There are 3 types of traders in this world, in any segment. but this rule applies to every one. It also apply to Sports, Business, casino and LIFE too.
1 Unlimited Loss – Limited Profit : This kind of traders majorly falls for instant gratification trades, he is majorly an amateure who seeks short term profits, He has targets but he is not happy with loss and risk mgt. they are always seeking for max profits but always come to max LOSSES.
2 Limited Losses – Limited Profits : This kind of traders are who is some what educated and better then the previous one. but they always seeking for an opportunity and always repent missing or not capitalizing on the opportunity. They are predictor and analyser.
3 Limited loss – unlimited Profits : You have to loss a lot of battles to win a war. However this is boring, hard, unbearable truth is, this is the only way to perform to be great in trading. so here you have to do that kind of things which you dont like, but that things will going to pay in future and from that things only you will be able to get your all the dreams come true.
#knowledge : one of key factors to become successful trader is TRAINING UNTIL YOUR ACTIONS BECOME AUTOMATIC
“What will you do if your stock jumps five points in your favor? Five points against you? What if your future goes limit up? Limit down? If you have to stop and think while you’re in a trade, you’re dead. You need to spend time preparing trading plans and deciding in advance what you will do when the market does any imaginable thing. Play those scenarios in your head, use your computer, and get yourself to the point where you do not have to ruminate about what to do if the market jumps. The mature trader arrives at a stage where most trading actions have become nearly automatic. This gives you the freedom to think about strategy. Remember, the first item on the agenda for a beginner is to learn how to trade, not to make money. Once you’ve learned to trade, money will follow.” – Dr. Sagar.
#knowledge : Book review :- The Next Apple : How To Own The Best Performing Stocks in Any Given Year
The book has only examples of US markets but the construct will be helpful to find similar trends in Indian Markets. Would recommend reading this book to all investors and traders even if you do not have any interest in Technical Analysis.
The best traders and investors have a trading or investing method that works for them and they religiously stick to it. This is a great way to approach the markets with a plan and the methods told by Ivanov and Lindzon in this book help you to understand the process behind finding the next company that has the potential to be The Next Apple.
Some of the most common things that we see in world markets and things that are repeated throughout every market cycle are explained to us in this book – The more the world changes ,the more things stay the same. Patterns repeat in the financial markets. Only the names of the winning stocks change.
The biggest stock market winners of each decade are very different because of 3 main factors –
1. The law of big numbers.
2. The law of high expectations
3. The law of innovation
The most important concept taught by this book and an underlying theme throughout all the chapters is –
The vast majority of big long term trends start with a breakout to new 52 week highs from a proper base. The underlying reasons behind this breakout could be very different.
The authors have adopted a simple process to see the future and catch trends. They look at the 52 week high list as it is a shortcut into the minds of smart investors. The author advises that one should not blindly buy any stock that hits a 52 week high. One needs to consider the technical characteristics of the stock as well as the catalyst behind the breakout and the growth prospects of the company.
The authors state that past performance is a powerful stock selection tool. Past performance is not a guarantee for future returns but the same patterns repeat year after year. Past performance can be a great source for new ideas. This refers to momentum as stocks that tend to out perform in the past year also tend to continue out performing in the next one year.
One of the most powerful combinations to make big money in the market is being right about something that the majority of the market is wrong about. Hence, one of the most powerful catalysts is a new 52 week high + high short open interest + negative sentiment. – Sailesh Malani
#Knowledge : Cut losses cut losses cut losses !
Strive for Success :
To be successful the most important rule is to strive for success. This means you must exert effort and put a lot of hard work into your effort. You must have both the short term and long term charts necessary for trading the markets you trade. They must be always up to – date and you need to watch them on a daily basis so your mind gets use to their price and time movement. You will then learn the secret of trading and see how the entire price movement continually evolves. – Sailesh Malani