to prey on small traders investors.. it’s a David vs. Goliath battle
Some rules of war, which apply to Trading:
Declare war on yr enemies – Life is endless battle & conflict & you cannot fight effectively unless you can identify your enemies. Once you gain knowledge in mkts 2/n
you will face enemies within yourself… its very necessary to identity the enemies within you to succeed… for eg. Person like myself has an enemy called overtrading..
Do not fight the last war – What most often weights you down and brings you misery is the past. You must 3/n
consciously wage war against the past & force yourself to react to the present moment.. Be ruthless on yrself, do not repeat the same tired methods… make everything fluid & mobile – we tend to remain in the past.. our last profit / loss.. previous trends hang onto the mind.. 4/n
all this needs to go.. Every trade needs mind reset..
Amidst the Turmoil of events, do not lose yr presence of mind – In the heat of battle, the mind tends to lose its balance. It is vital to keep your presence of mind. Learn to detach yourself from the chaos. Under the worst 5/n
news & panic all around usually market bottom are made… & I have so observed that most give up their long & some go short at such a moment.. its all illusion & pressure created by smart money.. they know your breaking point exactly…
Create a sense of urgency & Desperation - 6/n
– you are your worst enemy. You waste precious time dreaming of future or dwelling in your past instead of concentrating on your present. Set goals in market & even personal life to train your mind to remain focused… back your self in a corner.. test yr strategies in worst 7/n
possible markets… observe & learn from that.
Avoid the snares of GroupThink – The command & control strategy – In Trading, the worst possible thing is reading Whatsapp groups & other social media.. it does play with your mind… you need to participate & listen to others,
8/n
form strategies.. but one has to learn to cut off all this noise & trade.. In difficult markets I usually cut myself from all this..
Pick you Battles Carefully – We all have limitations… we face the smartest minds & deepest pockets… so unless you find a trade really fitting 9/n
yr strategy don’t trade.. curve fitting trades to ones bias is a flaw I have seen too often.. also the worst possible traders are those who get it right for the wrong reasons.. in fair mkts even wrong strategies will fetch u results but this will be suicidal.. It is really 10/n
suicidal… It is really not necessary to trade every day / minute & nor are the mkts gonna shut down tomorrow, so pick yr trades carefully..
Trade Space for Time / Loose Battles but win the war – Retreat in the face of a strong enemy is a sign not of weakness but of strength 11/n
u r in a wrong trade cut off, retreat.. stops r the only way to make money rest all strategies come & go… U need to admit to yrself u were wrong, contrary to the usual mindset which will find excuses of why it dint work out, its basic human nature to find own self not guilty n/n