Saturday, November 22, 2008

Traders enjoy the process of trading

What do most accomplished traders have in common ? They enjoy the process of trading. The net result - profit or loss is important since trading survives only if it is profitable. But traders do not trade for money. They trade because they enjoy in the building up of trading rules, in its execution, in research. For a trader, if you have followed your rules properly, your trading has gone well. Profit or loss is in the hands of the market.

I give this background since I received a comment that said:
"Hope you recollect my earlier posts wherein I said "Before touching 3350,Nifty likely to go to within 3-5% of Oct lows" How accurate? But the sad part is during this period only I lost 15K due to erratic/excessive trading in put options with tight stop losses."

Nothing sad about it. This is good news. The writer is aware of his/her trading problems. It is only a matter of time before he/she can solve these issues. Do not worry about the results. The market takes care of that. Worry about the process of trading. Are you defining your rules. ? Are you doing research ? Are you following your rules with discipline ? Are you afraid of losses ? Are you overleveraging ?


tushar said...

Very Optimistic post for traders.
Good one.

rajivhtc said...

namaskar sukhani ji,

really very optimistic post. but the point is how many traders are making money from this market ?
now taking lead from your post only, it would be good if you educate us at your convenience-

what should be the process of trading. how to define one's rules ? how to do the research ? how to follow one's rules with discipline ? why and how not to be afraid of losses ? how to understand overleveraging ?

would love to have your answers to all above during the course of time.

your blog is an addiction now.

warm regards
rajiv malik

BULLS said...

Dear Sir,

Speaking about Intra-day Trading in Nifty, can you throw some light as to what all aspects to be taken care of during such short-span of trade.

As in... How many Nifty Traders is it desirable to take positions during the day ? Whether it depends on signals received for trading ? or one should strictly trade where signs of trend are absolutely clear ? What all patterns can one look for cues in Nifty intra-day movements ?

And... Lastly, SL (Stop Loss) which are a must fo day traders. What should be the span of SL difference from the trade price ? Is 10-15 points of SL enough ?

Hoping to some post from you, especially, for Active Nifty Day-traders.

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