Skip to main content

Managing Stress while Trading


With real money on the line, a new trader will discover that live trading is not the same as books or simulated trading.

One of the top three things that will determine the success of a trader is the trader’s psychology. The weakest part of any trading plan is the trader himself. Stress can knock a trader out faster than anything else. Traders must treat trading as a business, and realize that it is highly probable that some of your trades will be losers & some will be winners, and hopefully those winnings will be larger than the losses. A trader can’t control the market, instead, they must learn to control their own actions. How they choose entries, exits, position sizing, and method will impact the success of their trading career. The key to trading success is not fun and excitement, it is about making what you do as sterile and boring as possible, steadily making money with good trades that have the odds in your favor.

  1. Only risk that Percentage of your total trading capital per trade which doesn't Destroy you Financially with stop losses and proper position sizing.
  2. Only trade a position size you are comfortable with.
  3. Trade a method or system you believe in.
  4. Know where you will get out of a trade before you get in.
  5. Only trade with a detailed trading plan.
  6. Believe in your ability to follow your trading plan.
  7. Know yourself as a trader and only take your kind of trades.
  8. Do not listen to any unsolicited advice about the trading; follow your own plan.
  9. Sit out markets that you are uncomfortable trading due to volatility or other looming risks.
  10. Do your homework before you trade.
  11. Keep your ego out of your trading and run it like a business.
  12. Only trade when the odds are believed to be in your favor.
  13. Do not blame yourself for losses if you followed all your rules.
  14. Focus on what you are doing and realize you can’t control what the market does.
  15. Practice discipline and self control at all times.
  16. Trading is a business not an amusement park ride, trade accordingly.”

Comments

Popular posts from this blog

Pre - Market Analysis (30th Jan 2022)

1. U.S Markets closed higher on Friday. 2. Right now , dow futures are lower. 3. Asian markets are mixed. 4. SGX Nifty is up 30-50 Points. 5. There's no point discussing Global markets today. 6. As we are dealing with our own local issues as of now. 7. The talk of the town is Adani Group. 8. Every stock Market participant during last 2 days have not spent as much time with their wife /gf /husband /bf as they have spent on researching Adani stocks. 9. They shouldn't have wasted so much time in research and should've spent their time with loved ones. 10. As Ultimately my Pre Market report would clear all. 11. Now , the Adani stock price has gone below the FPO price. 12. FPO price is in the range of 3100-3200 and stock price is around 2800  13. Who will subscribe to FPO when they can buy shares much cheaper from the Market? 14. Also over the weekend Adani has come up with a 450 page report addressing one by one the allegations made by Hindenberg.  15. I haven't

Pre - Market Analysis (16th June 2022)

U.S Markets closed higher Yesterday. Right now Dow futures are higher by 140 points. Asian markets are higher. SGX nifty is indicating a gap up opening. Yesterday as anticipated Fed increased the interest rates by 75 basis points. This is the largest increase since 1994. There was a relief rally due to the same in U.S market and U.S VIX crashed 10%. How long will this relief rally go on is a big question. Our Markets were terrible yesterday. Everybody is shorting left , right and center. Yesterday all Put options premiums raised in last 30 mins. Even 15200 PE which is 500 points away from spot rose from 4rs to 13rs. Today we might get some short covering as we open and even head higher. 16000 should be a firm resistance for the day. I won't chase this gap up because when Market reverses it's with great speed. I'll look to short near 15950-15980 with a stoploss of 16020. In Bear markets the rallies sre quite ferocious but again markets make fresh lows. So remembe

Pre - Market Analysis (18th August 2022)

U.S Markets closed Flat Yesterday. Asian markets are mixed. SGX Nifty is close to 17940 right now. Yesterday markets broke out of 17900 and now are closer to 18000. 18000 is important as 18000 CE has the highest open interest. Highest amount of calls have been written for 18000 CE strike price. Plus round figures always act as psychological resistance too. Today is the weekly expiry and as of now the range is 17800 to 18000. 17800 is a strong support level and 18000 might act as resistance. Markets will gain steam once 18000 is taken out. Today could be a side-ways expiry. But nothing can be said as markets can always surprise you. IT Index has crossed 30k. Sensex yesterday hit a landmark of 60k. Sensex and Nifty both are now just 3% away from all time highs. So this isnt just a Bull Market , it's a raging Bull Market. India VIX closed below 18 yesterday. Bank Nifty is close to important levels of 40k. Once these important levels are taken out then we move towards all t