How does one Make Wealth out of Trading ?
As for an my understanding goes, Trading is less 10% Technical and 90% Psychological.
Why Less Technical ?
Remember, Price is the Only Variable which keeps changing. The Change occurs due to change in the Human Behaviour.
The Price changes, as the Fear and Greed of Humans change at Different Price Points. Some one buys for Rs.10 Profit and Some One Sells as He is loosing Rs. 5.
So when Greed and Fear hits its ceiling, the Price starts moving up and down.
This is SAR.
In Stock Markets Nothing New Happens. One makes Money by looking at the Past behaviour at a Price
Data pertaining to Action at the Current prevailing Price.
Remember, For every Buyer there is a Seller and For every Seller there is a Buyer.
1. Market is Temple.
2. Price is King
3. Trend is your friend
4. Hope is miserable life partner
5. Time is your enemy
6. Greed & Fear - U R Weakness.
7. Patience is your Strength.
8. Stop Loss - Insurance cover
10. Compulsive Trading is a NO-NO.
11. Liquor is Poison to a Traders Mind.
12. Friends, Family, Fun, Entertainment and Sex (With your Life partner) are Booseters.
13. Eyes are your Weapons.
14. Mind is an Atomic Bomb.
Trading if done as Business, then every business objective is to be Profitable over a period of time. If we don’t make money at all then we need to shut the business.
So as a Trader, your Objective is to make Money.
Most of the trades are taken basis some view - View about some target. Eg: Long 10,000 - SL 9975 and Target 10100.
So the Objective is to make money, but Subjective is to make 100 Points. I Make 100 points or I Don’t book at all.
So its 100 or -25
Objective is when the trader says the market can do any thing, once I see a profit, I will use TSL and try and come out at least at Cost + Commission + Book + STT
Retail Ho, Retail Raho - Rakhesh Jhunjhunwala banana Gaye, toh Kapade bunane ke laya phi nahi bachonge.
Small is BIG for Retail
If your entry is correct, then You will get your Capital. But if its wrong then Forget Profit, forget capital, chances that you will not get your LIFE.
Market doesn’t care for any body
Ego Ko Sandaas Mein Rakhna.
“Be Willing to Loose Your View, But Not Money"