My friend @VMK100 sent me this insightful short note on mental fitness for traders by @normanhallett. I'm summarizing the points worth learning in this thread for the benefit of #trading community. Image
1. You've got a superb #tradingsystem...so why are you losing?

You are not in control of your #emotions.
2. Why are you not able to limit your losses and let your profits run?

You have been taking the losing personally which doesn't allow you to take losses.

It’s not about YOU. It’s about THE MARKET. If you don’t take your emotions out of it,
you don’t have a shot.
You must see yourself as a trader not someone who is becoming a trader.

3. How to cope with #losses?

Stop seeing the outcome of your trades as reflection of you as person.

Develop a mindset that you are a #winningtrader whether you are losing or winning right now.
4. What would you choose between perfect system or a perfect soulmate?

Trick question! Perfect systems dont exist.

Assess the type of trader you are - impatient/Intraday, Positional or I'll trade what moves types.
You are more likely to follow your trading signals if the system “agrees with you.”
5. Can I become a #successfultrader?

Visualizing your future the way you want
it, is much more likely to make that future a reality.

Visualize the picture of
'you' as a successful trader…you WILL head in the direction of that picture you’ve created in your head.
6. Are you the "new trader"?

A new trader is either someone who has just begun trading and is yet to make the mistakes of a beginner, OR someone who keep making the beginner’s mistakes over and over again and never learns.
New traders blame volatility or institutional traders. The difference is a successful trader is IN CONTROL. New trader is not.
7. Are you well capitalized?

If you’re under-capitalized, your conviction will waiver as fear creeps in.
You’ll hesitate when your system gives you the green light and you’ll take your profit too early.
Your light will dim and in the end, after blaming market conditions, your light will go out.

To win, your attention should be focused on the process of trading, not on each win and each loss.
8. Do you know the force is within You?

Its not about changing your system. Its about changing YOU.
9. Do you have a plan for hurdles that may come your way?

What if the power or internet is down? A phone call comes on something other than the trade you are concentrating on.

Trading is a business. Treat it like one.
Do everything in your control to STAY FOCUSED on the one task of following your system to the T.
10. Do you seek others opinions before entering your trades?

There's a danger of MAKING a trade fit. Its better to be out of a market (or stock) wishing you were in it then wishing you were out.

Only you know what works for
you, system-wise and emotion-wise.
Trust in your tested trading system. It will serve you if you stick to it.

11. Do you keep a trading journal?

A trader must ensure two thing. First, he doesnt get knocked out in the early rounds by the market. Second, learn from his mistakes.
Keep a journal and be honest with your self-assessment. It will help you to stay alive early and be aggresive later on.
12. Do you rely on trading gurus?

Trading gurus may help but only to a limited extent. Your eexperiences are they only ones that count. Make your own mistakes. Learn from it by keeping a journal. Programme your mind.
13. Do you believe in your trading system?

Choose a system or guru whom you can trust 100%. Do all the backtesting you can before deploying the system. Think hard before deploying it. But just follow it once deployed.
14. Are you looking for the holy grail of trading?

It doesn't exist. Even if it does its within you and not outside. Focus on your mind rather than anything else.

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More from @apurvansheth

Oct 19, 2020
Do you believe #markets are #cyclical in nature?
Do you think #history #rhymes, if not #repeats?
Do you agree #greed and #fear are two main forces in the market?
If answer of above Q's is yes then following tweets will solidify ur view if its a no then they will change ur view.
Above is a monthly chart of #Sensex. It goes through an alternating #greedandfear cycle of 8 years. Sensex moves up in greed phase and consolidates in fear phase. It was up 469% in greed phase of 1992. was up only 20% from 1992 to 2000. From 2000 to 2008 it was up 271%.
In fear phase of 2008 to 2016 it was up only 48%. #Sensex has entered greed phase in 2016 and will stay there till 2024. So far its up more than 50%. But the story doesnt end there. The sectors which move up during these phases also go through a cycle.
Read 22 tweets
Sep 28, 2020
Have you ever felt that you have lived the present situation before? Its called #Déjàvu. Right now I'm experiencing this moment in the markets. #PSUBanks are going through tough times. But this isnt new. They were in a similar situation back in 2016. (1/n)
#PSUBanks were dealing with NPA's and losses in Mar 2016. Their troubles are amplified after the #COVIDー19 outbreak. But it seems worst is over. Here's a weekly chart of #NiftyPSUBank index. (2/n) ImageImage
#PSUBanks are forming bullish divergence in #RelativeStrengthIndex(RSI) on weekly charts. #RSI is a momentum indicator. Bullish divergence in it indicates that ongoing downtrend is losing steam. It doesnt guarantee a reversal but increases the chances. (3/n) Image
Read 12 tweets
Aug 31, 2020
#Market #breadth is weak despite 100 point gap up in #nifty...quite unusual considering the recent rally in broader markets👀 Lets see if it catches up during the day
#Humptydumty #nifty had a great fall...is this the #top?
Declining stocks outweighed advances early in the day this was an indication of things to come.

#advancedecline #nifty #triplecentury Image
Read 5 tweets
Aug 28, 2020
I believe #ratio #charts are one of the most underrated and underutilized tools in #technicalanalysis. Do you agree?
Ever wondered which stock to chose between the two?

#HDFC or #HDFCBank?
#TCS or #Infosys?
#HeroMoto or #BajajAuto?
#ACC or #Ambuja?
#BPCL or #HPCL?
#BajajFinserv or #Bajajfinance?

But don't know whats the best approach to pick one?
#Ratio #charts can help you identify the best stock for #trading and #investment. You can plot a #ratiochart by dividing the price on one stock with another. Its preferable to divide the high priced stock with low priced one to get ratios greater than 1.
Read 13 tweets
Jul 6, 2020
I am building up on the concept of #RTM shared by @heartwon in this post -

#RTM = Short-Term Mvng Avg (5DEMA) / Longer-Term Mvng Avg (20 DEMA)

He adds another #RTM: 4 Week EMA / 12 Week EMA on the #charts to get a holistic view
So the two #RTM's work like a MACD except that an #MACD plots the absolute difference between 2 mvng avgs. But since we are dividing one avg with another in #RTM we can use it to compare one stock with another which we cant do in a MACD.
I have applied the concept of RTM on F&O stocks and come up with some insights. If the daily #RTM value is above the Weekly #RTM value then I define the trend as bullish. Then I calculate the difference between Daily and weekly #RTM's across F&O stocks. Image
Read 6 tweets
May 26, 2020
Introducing the #T20list

This list covers #CNX500 stocks but excludes F&O stocks from the study

stocks at new 20Day highs or lows suggest range #breakout

20Day volume gainers indicate #action

top 20Day % gainers & losers suggests #momentum Image
#Locustsattack could lead to a #bounty for #agrochemical companies

Smaller #cement stocks are gaining interest. Watch out.

#stockstowatch #howtotrade #trading #T20list


My video on how the #T20list can help traders identify #stockstotrade
Read 9 tweets

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