Trading is Hard; The Key is Developing a Strategy That Works For YOU

Trading is Hard;

The Key is Developing a Strategy That Works For YOU

Trading successfully is not easy – in fact, it is VERY hard!

No software can not take someone who knows nothing and turn them into a SUPER SUCCESSFUL, ULTRA PROFITABLE trader.

Trading using the very basics can do the wonders.

If you are desperate to make money and need to make it fast, please look elsewhere.

If, on the other hand, you are looking for a powerful tool that can provide you with an edge over many other traders, then you have found what you are looking for.

Having strong basics, does not mean that you don’t have to think and continue to educate yourself about the markets, money management, and strategy development.

In fact, some people will use the basics the wrong way, lose money in the markets and blame the tool.

The tool is not to blame as there is much more to trading successfully like

1) Maintaining control over your emotions (i.e. fear and greed) so you can make rational trading decisions,

2) sound money management, and

3)common sense.
These are necessary ingredients to success as a trader.

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WHAT IS THE SUMMARY?

Use Demand and Supply as the basic tool for trading.
Test your strategy-PAPER TRADE. Perfect your plan.
Dont buy too many positions or dont buy just one position
use money management= use position sizing,use risk control with stoplosses

For example
A person started buying Put options. He got just one day more to expiry.The main index Nifty was moving up. PUT price was falling. He went on buying more puts at lower and lower prices. His limited capital got finished. puts are still falling.


Analyse now
Buy puts is correct when market begins moving down.Otherwise it is wrong.
Just one day to expiry-risk is high no time for market to turn in your favour.
Buying too many puts is unsafe.
money management
by MM, we get max number of puts to buy as 10.
Decide your loss% say 20%,if a put is priced 20 rupees, risk is set by you at 4 rupees per put, then u got for 50 puts loss level=200.
and if your capital is 20000 rupees,max loss you set at say 10%, then you should not loose more than 2000 rupees. now number of positions one can buy is 2000/200=10
Having bought puts he must try to limit loss by selling them at profit.

when he saw put price is going on falling and Nifty INDEX is going on rising, he must stop BUYING PUTS at some point and start doing right things

Right things are
sell puts with minimum loss or slight profit
start buying calls as market is rising.LIMIT NUMBER OF CONTRACTS TO 10,
Since expiry is just one day away,try to settle things fast.