Identifying the Best Perfoming Sectorial Indices

July 27, 2009

Although the NSE Nifty 50 and the BSE Sensex have not yet crossed their June 2009 highs a few sectorial indices have done so. Some of the sector indices that have outperformed are: The Auto Index has clearly confirmed its intermediate uptrend. Investor/traders can concentrate their trading into the following stocks that belong to the [...]

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Difference between successful and unsuccessful traders

July 24, 2009

One crucial difference between successful and unsuccessful traders is that the successful ones have a trading plan and they follow it. Unsuccessful traders do not have any kind of plan for their trading. They go from trade to trade applying various ideas they have learned without any consistency and without any testing. They make decisions [...]

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Four Pillars to a Successful Trading Plan

July 23, 2009

The Four Pillars to any Successful Trading Plan are: Trade with the trend One of the most useful skills that any trader can develop is the ability to identify a trend. If you can identify a market in an uptrend and enter a long position or identify a market in a downtrend and enter a [...]

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Are traders highly under capitalized

July 22, 2009

Most traders who want to trade the Indian futures markets seem to be highly under capitalized. Not only are they under capitalized but they have a very high expectation of returns. This limited trading capital makes traders take highly leveraged positions.  A single loss in a highly leveraged position could easily wipe out 50% of [...]

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Never add to a losing position

July 21, 2009

As a trader you should never add to a losing position! Most traders add positions to a losing trade to average their entry price. This is hazardous to your trading career. Averaging down into a losing trade is the only thing that will assuredly make you lose a bulk if not your entire trading capital. [...]

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Let the market tell you what to do

July 20, 2009

The correct attitude for successful trading is to let the market tell you what to do. If the market says to go long, buy, and if it starts to go down, sell. This sounds easy but it is much more difficult than you think. We always like to believe that we can be in control. [...]

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What is Money Management

July 19, 2009

Money management is nothing but risk management. It is the part of your trading plan (or trading system) that tells you how much money (as in % of trading capital) should you risk in a single trade. Money management (risk control) is is the most important component to your trading success. You could have the [...]

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