Everyday I prepare for trading in the markets. During the US market hours, I watch the waves, try to understand where its going. During the time in between the US and our markets, I study different views, blogs, boards to get more ideas and thoughts..Not that I follow anyone but its to get different perspectives on things..Mostly I plan the trade and trade the plan. Before entering a trade, I have a plan - Meaning what will I do IF market does this? What is my exit point? What is my add-on point? At which point will market prove me wrong? How do I manage this trade? And a very important question - What is my RISK on this trade?
Most newbies ask me - what do you do to become successful in the markets. I dont have an easy answer to this. Markets are dynamic. There is no holy grail out there to making money in the markets. Its all a matter of experience. A matter of having a strong mind to weather out minor bad phases. A matter of understanding money management and risk management. Above all, you need real time experience trading - Its no easy feat - Hours and hours of effort is needed. One thing new traders always think about is WHAT is the profit potential of a trade? They never think or understand the concept of - WHAT is the risk potential of a trade? See trading is not about charts or TA alone. There are many factors which I have tried to explain above..
I always say - 3 things - Mental frame of mind, Money/Risk management and finally TA/Charting/Some kind of trading method or system. All 3 need to be there, all 3 need to gel together. Its a process...And each trader needs to evolve himself or herself into such a state. Its not easy but can be done.
When I trade, I feel like its a WAR. There is no concept of investment when you are trading in and out. In fact, I find it hilarious when some folks say they invested in calls and puts..LOL..Do you know what investment is? Where is the wealth creation? Trading short term or in FNO is a zero sum game. I take your money, someone else will take my money...You need to be ahead of the game to make a mark. The sharks are out there to take your money. Its WAR - pure and simple! :)
Maybe putting cash into stocks Buffet style so as to earn dividends - Yeah this is investment...Not what most people do or can do.
So when you go out to trade each day. Prepare for WAR...Bulls and Bears make money..Pigs get slaughtered :)
Charts and Views later.
Best.
Subscribe to:
Post Comments (Atom)
7 comments:
Dear Lee,
a small suggestion -- stop entertaining suggestions from your fans.. like you should do this or that. I have seen some in your C-Box yesterday.
it is a warfare but psychological kind.So should not loose focus. 1 minor mistake and your whole set-up may be destroyed. You got my point??
have some great days ahead.
:)
dear Lee,
these thoughts coming from your experience and deeper understanding of the markets are really good guidance of the actual process of trading. i second your advice of "plan a trade and trade the plan."
also, viewing real-time charts for years teach you something more than normal folks in stock markets. yes, its a WAR everyday and its all about whether you can survive to live another day stronger or weaker.
cheers//mvp
Hey Sajal, Yeah you're right...I guess I am feeding them more..But sometimes just trying to help them..thats all.
MVP, thanks :)
Lee
Hi Long short
some how i got a news that mkt will rally by 150-200 pts from 2550 levels, so i just thought of pass on this info. thats it
Its fine i wont such messages in future :(.
Dear Chiru,
Dont get into bad mood.Try to understand my point.If you have news you may just pass on to him.
Please dont put your judgement on others trade.
Let him be responsible for his trade.
He is so helpful.You can always ask him about your queries.
And you are not the only one. I have seen many have put judgements on his trade and majority of those folks will disappear all of a sudden when Lee would have tough time in market.
It is very easy to comment but to do it in actual is really ... really very tough.I always say stock trading is the hardest job of making easy money.
Have a nice day! chiru.
:)
Hey Chiru, Dont get upset friend, see I am all for views...Opposing views also...Pls keep posting..
See I make decisions on my own trades irrespective of what others might think..every trader should be like that...
Only thing I dont like is ppl questioning my trades...I mean to say - If I am intelligent and savvy enough to survive in this mkt this long, I can make my own decisions now also...
Not saying you did anything like this..Its more of msg to everyone...
Also I hate ppl asking me targets..what to do with trades etc...
Dont take things to heart. Sajal also means well by his comments.
Best.
dear lee, you said it right. it is worth 100 books.
Post a Comment