Evolution of a trader

Stage Four: The Determined Trader

1) This is the stage in which you learn to specialize in certain markets and trading methods 

2) Without realizing it, you have finally found your style of trading after hours of hard work and research. You stick to your method and you improve it 

3) You realize that you need an edge whether its tape reading or being a Fibonacci expert. The important thing is you are slowly transforming yourself into a specialized trader 

4) You test your methods and they seem to work. You gain tremendous market knowledge. 

5) You reflect back on yourself and you can't help but laugh at your foolishness. 

6) Although you have not made enough money to call yourself successful you are proud of your journey and accomplishments 

7) You realize that the Holy Grail is not about technical indicators or price patterns 

8) You calculate risk before profits and place strict money management on all your trades.

9) You cut losses short and learn to scale out on your winners. 

10) You start accept losing as a natural part of the game 

11) You take high probability trades that you have tested and feel confident about your setups 

because you understand that trading is a game of probabilities 

12) Your psychological makeup has changed from an amateur mindset to a professional one.

Market updates for 18/01/2013

Hindalco Weekly chart

ITC Weekly chart

Weekly charts of Hindalco and ITC are the examples of breakouts which are not sustained. Hindalco closed above Rs.126.50 but it couldn't sustain for long time . Now it has once again fallen into consolidation zone.

ITC made a breakout from  trend line support which was formed over a period of  6 months. Now it has once again trading above the trend line.  

Traders should note that since we have one more trading session in this week closing above/below the trend line is necessary to estimate price targets.

Corporate results on 18/01/2013 

ITC , HDFC Bank , M&M Finance , Mind Tree , NIIT

Nifty medium term trend

Trend	UP
Initiation Date	29-11-12
Initiated at	5825
High since change	6068
Reversal if closes below	5800

 

Thought for the day

You will never do anything in this world without courage . It is the greatest quality of mind next to honor. Aristotle

Market updates for 17/01/2013

SBI Daily Chart

SBI was one of the top loser in today's trading session. It has closed below trend line support at Rs.2460 and MACD is indicating sell. It is likely to correct in coming days.

Axis Bank

In yesterday's post I had mentioned about possibility of continuation of up trend in Axis Bank which has not happened. Today it has exactly closed at trend line support at Rs.1409. Close below this level will lead to decline in stock price.

There are two types of losses.

1. Trader is strictly following time tested method but a number of stop loss are triggered. In this case trader need not to worry about loss because this is happening because of limitation of method and all trading methods have limitation. He has to accept loss without anger , guilt , fear or any other emotion and he should not give up the system just because stop loss is triggered

2. Loss is happening because of emotions like Ego , Greed , Fear , Hope or Ignorance (EFGHI). In this case trader has to think seriously and should come out of it as soon as possible.

Corporate results on 17/01/2012

HCL Tech , Federal Bank , Hero Motoco , Exide Ind

Nifty medium term trend

Trend	UP
Initiation Date	29-11-12
Initiated at	5825
High since change	6068
Reversal if closes below	5800

 

Thought for the day

After a storm comes a calm - Mathew Henry

Market updates for 16/01/2013

Axis Bank

Axis Bank has breached trend line resistance at Rs.1410. More over it is forming higher top and higher bottom formation which is a bullish sign. More up side is possible.

ITC

Before few trading sessions ITC breached trend line support at Rs.280 and made a low of Rs.273.  You can observe in the daily chart of ITC that it has once again closed above the trend line resistance and in fact ITC was one of the top gainers in today's trading session. We have initiated long in ITC.

Results on 16/01/2013

Bajaj Auto , Bajaj Holdings , Yes Bank , TTK Prestige 

Nifty medium term trend

Trend	UP
Initiation Date	29-11-12
Initiated at	5825
High since change	6068
Reversal if closes below	5800

 

Thought for the day

 

A leader is best when people barely know he exist , when his work is done , his aim is fulfilled , they will say we did it our self.  Loa Tzu 

Evolution of trader

Stage Three: The Developing Trader

 

1) You start to realize the amount of work required and the immense learning curve that you must overcome to understand the markets, maximum pessimism is experienced here

2) At this point, traders may find it overwhelming and quit. Stronger minded traders will push their motivation harder to start their second spurt for knowledge 

3) Hunger and passion is needed to clear this stage 

4) You will ask a thousand questions and bug every professional trader you meet. You will read a thousand day trading articles 

5) You will start paper trading, develop strategies and setups, and define risk parameters for every trade 

6) You will go on a hunt for self-understanding to master your psychological game 

7) You will visualize every possibility on a trade before you take it.

8) This is the true learning phase. You are trying hard to develop your edge in trading.

                                                                                                  to be continued............