Nifty And Bank Nifty Analysis For 16th January

10 Trading Tips for Traders

Here are our top 10 Trading Tips for Traders and Investors. It really doesn’t matter whether you’re a veteran trader or just getting started, we think these are all very important!


1. “Between stimulus and response, lies our freedom to choose” – Steven Covey
This quote is very important. What it tells us as traders is that there should be a specific setup you’re looking for (a pattern of sorts) and then a specific protocol that follows it. Too many traders just “wing it” when they are trading instead of having a specific setup and plan that they know works and they know what their risk/reward is. If you don’t know what you’re looking for and you don’t know exactly what you’re doing when you see it, you’re likely headed down the wrong path.

2. Stick to your plan.
It’s extremely easy to lose focus of what you’re doing and start doing what someone else is doing. Stick to your trading plan and what you know works.

3. Ignore the noise.
Noise comes in a variety of ways. At times it’s economics news, at times it’s other traders. It’s not uncommon for traders to seek what other traders think about their trades because they are unsure about their trade setups. Noise for many traders usually results in less profits and larger losses.

4. Be patient.
Anyone who is successful at anything has patience. Whether it’s an athlete, your favorite musician or successful entrepreneurs, they all have patience. You don’t become successful without having patience. Just as important it is to have a set plan and rules, patience is just as important.

5. Stay Disciplined and Focused.
This is one of the hardest things for traders to do. It falls inline with being patient. Discipline may be the most important factor in trading success. A lot of traders think it’s the trading system but they are mistaken. Many trading systems work, but only when it’s executed with discipline each and every time.

6. Pick one methodology.
Another problem many traders seem to have is that they trade too many methodologies and try to do too many things. A professional basketball player usually sticks to just playing basketball. They usually aren’t nearly as good at playing another sport. As a trader you should focus on one approach to the market and stick to it. Master one way to do something and you’d be amazed with the results.

7. Undertrade.
Under-trading is always better than over-trading. Start off slow and get the hang of what you’re looking for. Most traders who are consistently profitable are not over-trading or over-leveraging their accounts.

8. Repetition is key.
If you want to be successful it’s important that you develop the proper habits and repetition. Anything that you’re good at is likely the results of practice and continuous repetition.

9. Execute
If you want to make money trading, then you have to know when to execute. Being “gun shy” is not going to work in this business. You have to what you’re looking for and when you see it you gotta be ready to pull the trigger.

10. “We have met the enemy, and it is us”
A famous quote from the Walt Kelly cartoon strip, Pogo. As traders you must understand that we have complete control over our wins and losses. We choose when to enter, we choose when to exit. We decide on what price to buy or sell whichever market we are trading. You can’t blame anyone but yourself, so remember, if you want to be a successful trader it’s important to have a trading plan, stay focused, be patience, and have discipline.


Courtesy : www.ratiotrading.com

Proper Preperation By Oscar Rodriguez

As traders it is important to realize that this job can be very rewarding every day. But reaping the rewards does not come by just doing minimum preparation. One must fully prepare for different scenarios that could unroll the next trading day.


If one already has a set of rules for a specific trade set up that they like, for instance the Slingshot trade, it does not indicate that he’s got the tools and is fully prepared to go into the markets and trade the next day. Having the tools and knowledge to navigate the markets is a step towards success but it requires more to get rewarded. It requires that the tools and knowledge be used to fully prepare for the next trading day by creating specific if/then scenarios for each anticipated trade. The scenarios can be rehearsed and memorized or jotted down on a note pad. The more detailed these if/then statements are the better. And the more of these if/then statements one can come up with the more opportunities he can expect going into the next trading day.


I routinely flip through many charts every evening looking for quality setups from the universe of stocks that I watch. So every day before sitting at the trading desk I know the stocks I am going to trade and which trade set ups will be used to trade them. I create multiple if/then statements in my head so that when a stock reaches the anticipated price zone where I want to get involved there is no second guessing and the trade is properly executed based on my if/then statement. The more details a statement carries the likelier it will be that the trade is successfully executed. I like to include subsets to my if/then statements that tell me what the stock would need to do in order to get me back in to the trade if I’m stopped out, or once in, how the stock would need to trade for me to add some size to the position. Again, the more detailed, the better prepared one will be to reap the rewards.


In reality successful traders spend more time preparing than they actually do trading. They know that setting up plays on a whim is foolish trading. I know of not one successful trader who trades this way. One needs to be able to anticipate price behavior, not watch it come then act on it as it’s happening. As always, the more preparation one does the more opportunistic trading he’ll encounter going into the trading day.