TRADING PLAN
A trading plan can be as simple as deciding to buy above these levels and sell below these levels. Usually trading plan also called as homework has to be done one day prior to your trading day.
For FNO it might be a daily task. For cash players it can be weekly.
A trading plan can be as simple as deciding to buy above these levels and sell below these levels. Usually trading plan also called as homework has to be done one day prior to your trading day.
For FNO it might be a daily task. For cash players it can be weekly.
TREAT IT AS A BUSINESS
Trading is one of the most flexible businesses out there. It's you who decide to run the shop or close it for a day. Always treat it like a business. Calculate your loss, sunk cost, depreciation, bad debts etc too. Yess trading had these terms too.
Trading is one of the most flexible businesses out there. It's you who decide to run the shop or close it for a day. Always treat it like a business. Calculate your loss, sunk cost, depreciation, bad debts etc too. Yess trading had these terms too.
BACKUP
Now here backup should be in 2 terms. One should be that your trading income shouldn't be a decisive income. Always rely on other sources too. The other back-up which is least talked about is Technology back-up. Having an additional back-up like an additional
Now here backup should be in 2 terms. One should be that your trading income shouldn't be a decisive income. Always rely on other sources too. The other back-up which is least talked about is Technology back-up. Having an additional back-up like an additional
Internet connection or additional system like an extra phone or laptop is necessary too. Technology is meant to have hiccups and that shouldn't act as a source of hindrance to your business.
TRADING CAPITAL
The no. 1 rule of trading is it shouldn't be done with borrowed money/capital. Usually such hindrances create performance pressure and ultimately wiping out your capital as certain extent. Unless and until you are not comfortable, you won't be profitable. Period.
The no. 1 rule of trading is it shouldn't be done with borrowed money/capital. Usually such hindrances create performance pressure and ultimately wiping out your capital as certain extent. Unless and until you are not comfortable, you won't be profitable. Period.
STUDY TREND
The golden rule of trading is be with the trend. You might get stopped out 8/10 times but those 2 times if you follow religiously can give you enough money to come out net net green by YTD. Not staying with trend is like going uphill river side. Ain't a good idea.
The golden rule of trading is be with the trend. You might get stopped out 8/10 times but those 2 times if you follow religiously can give you enough money to come out net net green by YTD. Not staying with trend is like going uphill river side. Ain't a good idea.
RISK CALCULATION
Risk first reward later. The mantra of trading. Always remember you should know and calculate the amount of money you are about to risk. Your emotions will definetly play as we are humans lol. But those emotions should not affect your trading decision.
Risk first reward later. The mantra of trading. Always remember you should know and calculate the amount of money you are about to risk. Your emotions will definetly play as we are humans lol. But those emotions should not affect your trading decision.
TRADING SYSTEM
Here trading system doesn't mean how many screens you have ๐ Trading system can be as simple as sell below VWAP and buy above VWAP with some additional tweaks. Follow these 2 steps religiously and see the discipline building in. Don't hop onto 10 systems in a week
Here trading system doesn't mean how many screens you have ๐ Trading system can be as simple as sell below VWAP and buy above VWAP with some additional tweaks. Follow these 2 steps religiously and see the discipline building in. Don't hop onto 10 systems in a week
STOPLOSS
BHAI ISKO CAPS MAI PADHLO. ALWAYS USE STOPLOSS.
STOPLOSS NAI LAGAOGE TOH MARKET TUMHAARI LAGA DEGA.
I HOPE THIS STATEMENT IS ENOUGH TO MAKE YOU UNDERSTAND THE IMPORTANCE OF STOPLOSS
BHAI ISKO CAPS MAI PADHLO. ALWAYS USE STOPLOSS.
STOPLOSS NAI LAGAOGE TOH MARKET TUMHAARI LAGA DEGA.
I HOPE THIS STATEMENT IS ENOUGH TO MAKE YOU UNDERSTAND THE IMPORTANCE OF STOPLOSS
DRAW A LINE
As a discretionary Trader just like we are you should always know when to draw the line. It by any means does not mean that you got to stop trading. Remember one thing. Never lose touch with the market. Never ever. Trade with 1 lot or go with 1/5th of your usual qty.
As a discretionary Trader just like we are you should always know when to draw the line. It by any means does not mean that you got to stop trading. Remember one thing. Never lose touch with the market. Never ever. Trade with 1 lot or go with 1/5th of your usual qty.
PERSPECTIVE
Trust the process. You as as trader will be defined during the drawdown period. Trust your system. Trust the process. Focus on losing small and winning big. Focus on the big game. Don't try to outrun the market. Focus on surviving for the next 2 decade. PERIOD.
Trust the process. You as as trader will be defined during the drawdown period. Trust your system. Trust the process. Focus on losing small and winning big. Focus on the big game. Don't try to outrun the market. Focus on surviving for the next 2 decade. PERIOD.
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