Thread by @Traders82

#Chapter1
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.

Why Does Price Change ?
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.

When Greed over takes, the Price Moves Up or Buyers Come in and thats SUPPORT and When Fear Increases, the Resistance comes in and People start selling, hence it becomes resistance.

In Stock Markets Nothing New Happens. One makes Money by looking at the Past behaviour at a Price

Stock Markets is the Only place in the entire universe, where the Money is made in Future, by Looking at the past data.

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.

What are the Key Elements, one needs to remember as a P.A Trader ?
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

9. Position Sizing decides your Age.
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.

So What is Subjective Trading and Objective Trading ?

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.

So What is Subjective ?
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

Subjective is when a traders mind says I Think the Market will fall and hence I will wait for my target to hit.

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

So Now many think, If Trend is my Friend and I should ride till it bends…BC, Yeh Kitaab main accha lagta hai. DII, FII, HNI, Pro - Yeh Kar sakte hai.
Retail Ho, Retail Raho - Rakhesh Jhunjhunwala banana Gaye, toh Kapade bunane ke laya phi nahi bachonge.

Small is BIG for Retail

Please remember the below quote by #WarrenBuffet “ Market is a device for transferring money from the impatient to the patient”

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 Owe any money to any body. Market doesn’t invite you to come and trade. Get your Act together and always Trade with a Capital which is lost, should not impact your dependents life. Yes, Tum BC - Suicide Karloge, But Biwi, Bacche, Maa, Baap, Pariwar - Unka Kya ???

Your aim should be to take a Trade at the Price at which you want basis the chart reading you will do and not basis what Prof, MJ, Sundar, Jegan or that Chutiya @ Trading8 wrote on their handle or for that matter not even what your MIND tells YOU

Market doesn’t care for any body

Market Khud Market Ki Nahi Sunta - Toh boh Ghana tumhare yah kisi aur ki sunenga. Market Ko Suno - Sunke Trade Karoge toh Sukun Se Rahoge, Dekh Ke Trade Kiya, Toh Zindagi Dekhane Layak Nahi bachonge.

Ego Ko Sandaas Mein Rakhna.
“Be Willing to Loose Your View, But Not Money"

#TapeReading: #Fact : Reading a Tape is an Art, Science and Maths. To Read a Tape accurately, one needs to have Tea in a Steel Tumbler and not in Cup. Tea in a Cup is easier, as the Ceramic cup absorbs the Head, but Tea in a Steel Tumbler burns the lip's....