Wednesday, March 28, 2012

Sensible Trading Advice

Here is some excellent advice to traders from the blog – For the full post, click here.

I am giving some excerpts:

  • A good trade must be right on both direction and timing. If one of these factors is wrong, the trade is wrong.
  • I have trading rules and I must follow them. If my rules prevent me from participating in a market I correctly called, so be it.
  • Traders MUST force discipline upon themselves, even if it means a move will be missed.
  • There will always be another market. It is a sign of trouble when a trader feels he or she must be in a given market even if the set up was not right.

I try to follow these rules.  Often, I explain on CNBC that I am not having a position, or stepping aside or starting with a small position. Sometimes, I miss a move, – so be it.


tanmoy said...

For this kind of definitive advice from a highly experienced trader I frequent this site. This has happened to me also - when broker pressing for trade telling you are missing the move but I am not certain - this blog will help me stick to my position, after all brokers are not the one who is going to bear the pain of losses.

It's all about money, honey! said...

Dear sir,

I have attended one of the investor camp in Ahmedabad. I was a novice at that time and didnt understand techinical analysis. At that time you suggested me to read "Timing the markets" It really helped and I read a lot of material on technical analysis too. If I remember correctly, you explained the importance of ATR in trading. I would really appreciate if you can explain that study along with your interpretation of it on the price chars.

Thank so much.

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