Components for making money from market
1.
Mind-The importance of Discipline, How people think, how to manage risk, how greed and fear affects our decision making, it is important than entry exit because trading is 1 man job we are investor, analyst, risk manager all in one
1.
Mind-The importance of Discipline, How people think, how to manage risk, how greed and fear affects our decision making, it is important than entry exit because trading is 1 man job we are investor, analyst, risk manager all in one
2.
and managing all things at same time takes experience but to speed up we can divide activities in steps for each part of trading system, this is biggest hurdle those struggling in this field face, it is 60% part for being successful in trading as per Dr. Alexander Elder
and managing all things at same time takes experience but to speed up we can divide activities in steps for each part of trading system, this is biggest hurdle those struggling in this field face, it is 60% part for being successful in trading as per Dr. Alexander Elder
3.
Position size-whatever basis we choose to trade there will be times when trades won't go as expected & get us in loosing streak, every successful trader goes through this phase, its position size that will help you overcome this phase, staying in game is must to win the game
Position size-whatever basis we choose to trade there will be times when trades won't go as expected & get us in loosing streak, every successful trader goes through this phase, its position size that will help you overcome this phase, staying in game is must to win the game
4.
how much money to put in trade, position should be reverse calculated on the basis of risk we can afford to take per trade, not more than 2-3% of capital in one trade Eg 20000 risk i have decided per trade & stop is 5 rs below entry then 20000/5 = 4000 shares we can buy
how much money to put in trade, position should be reverse calculated on the basis of risk we can afford to take per trade, not more than 2-3% of capital in one trade Eg 20000 risk i have decided per trade & stop is 5 rs below entry then 20000/5 = 4000 shares we can buy
5.
Managing position size is the only step that will help you to keep the money made from trading, if it's not proper you will earn 3 months & give it back in 4th month, it accounts for 30% in successful trading As per Dr. Alexander Elder
Managing position size is the only step that will help you to keep the money made from trading, if it's not proper you will earn 3 months & give it back in 4th month, it accounts for 30% in successful trading As per Dr. Alexander Elder
6.
Entry- where to enter into any position, it can be based on any method like chart patterns, support & resistance, indicators, but should be backtested on past data to have proven edge, backtest & forward test will give us idea of accuracy & risk reward ratio our method has
Entry- where to enter into any position, it can be based on any method like chart patterns, support & resistance, indicators, but should be backtested on past data to have proven edge, backtest & forward test will give us idea of accuracy & risk reward ratio our method has
7.
now we know how much winning trades to expect out of 100 & how much money we will make when trade goes in our favour & if it doesn't go in favour how much we stand to loose
Trading Result= Winning trades* how much we made- Loosing Trades* how much we lost
now we know how much winning trades to expect out of 100 & how much money we will make when trade goes in our favour & if it doesn't go in favour how much we stand to loose
Trading Result= Winning trades* how much we made- Loosing Trades* how much we lost
8.
Exit- where to book profit or if trade doesn't go in the desired direction then where to cut loss, since we have already decided the maximum loss on this trade in step 3 we have already accepted this loss as normal, this is the calculated risk @Trading0secrets your views pls
Exit- where to book profit or if trade doesn't go in the desired direction then where to cut loss, since we have already decided the maximum loss on this trade in step 3 we have already accepted this loss as normal, this is the calculated risk @Trading0secrets your views pls
9.
Method is only 10% part of trading success but everyone is running behind entry exit only this is why trading has low success rate, This week i took 9 trades, 2 hit SL, 3 closed at cost and 4 gave good profit all posted here, it is position size & psychology that made me money
Method is only 10% part of trading success but everyone is running behind entry exit only this is why trading has low success rate, This week i took 9 trades, 2 hit SL, 3 closed at cost and 4 gave good profit all posted here, it is position size & psychology that made me money
10.
Journal- Doesn't matter if you are starting or been into trading, journalizing your trades is must to keep you in right direction & removing what is not working for you, it's only after analyzing 100 trades you can find what is your strength & what are the problematic areas
Journal- Doesn't matter if you are starting or been into trading, journalizing your trades is must to keep you in right direction & removing what is not working for you, it's only after analyzing 100 trades you can find what is your strength & what are the problematic areas
11.
Making money from market requires in depth work on each point given above, how to better your psychology, how much to risk, where to take trades,
let me know if you want me to post anything, i am available for 1 hour feel free to connect.
#3M #Mind #method #money
Making money from market requires in depth work on each point given above, how to better your psychology, how much to risk, where to take trades,
let me know if you want me to post anything, i am available for 1 hour feel free to connect.
#3M #Mind #method #money
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