The Challenge of Changing Yourself

Dear All,

The intensity and the repetition of change efforts are directly responsible for their ultimate success. The new, constructive patterns that are likely to stick are the ones that have become associated with highly distinctive states of mind and that have been overlearned. Conditioning new patterns to a distinctive state of mind makes it easier to summon those patterns any time you reenter that state. This connection becomes internalized most readily when it has been rehearsed intensively.


It is rare that insight alone will create change; more often, doing things differently allows you to make the change part of your ongoing repertoire. The greatest challenge to changing yourself as a trader is also the greatest challenge to change in therapy. It is relatively easy to initiate change, but it is far more difficult to sustain it. Without consolidation, people are likely to relapse into their habit patterns. An essential ingredient in change is to repeat a desired pattern again and again in the same way, at the same time, in the same situations on every occasion that presents itself. At first, enacting the new behaviors will require conscious effort. With repetition, however, the behavior becomes automatic, an internalized part of the self.


So be ready to change yourself as " Disciplined Trader "


Thanks & Regards
Abhay Mehrotra

A Trader's Self Evaluation !!!!!!!!!!!!!

Dear All,
Before putting up any trade , have u ever think regarding these point.


1) What is the quality of your self-talk while trading? Is it angry and frustrated; negative and defeated? How much of your self-talk is market strategy focused, and how much is self-focused? Is your self-talk constructive, and would you want others to be talking with you that way while you’re trading?

2) What work do you do on yourself and your trading while the market is closed? Do you actively identify what you’re doing right and wrong in your trading each day—with specific steps to address both—or does your trading business lack quality control? Markets are ever changing; how are you changing with them?

3) How would your trading profit/loss profile change if you eliminated a few days where you lacked proper risk control? Do you have and strictly follow risk management parameters?


4) Does the size of your positions reflect the opportunity you see in the market, or do you fail to capitalize on opportunity or try to create opportunities when they’re not there?


5) Are trading losses often followed by further trading losses? Do you end up losing money in “revenge trading” just to regain money lost? Do you finish trading prematurely when you’re up money, failing to exploit a good day?


6) Do you cut winning trades short because, deep inside, you don’t think you’ll be able to make large profits? Do you become stubborn in positions, turning small losers into large ones?

7) Is trading making you happy, proud, fulfilled, and content, or does it more often leave you feeling unhappy, guilty, frustrated, and dissatisfied? Are you having fun trading even when it’s hard work?


8) Are you making trades because the market is giving you opportunity, or are you placing trades to fulfill needs—for excitement, self-esteem, recognition, etc.—that are not being met in the rest of your life?

9) Are you seeking trading success as a part-time trader? Would you be seeking success as a surgeon, professional basketball player, or musician by pursuing your work part-time?


10) Can you identify the specific edges you possess over the many other motivated, interested traders that fail to achieve success in the markets? Do you really have an edge, and—if so—what are you doing to maintain it?


Remember the answer is within you of your trading mistakes or failure, " not with the technical analysis software that u use"




Thanks & Regards
Abhay Mehrotra

What does it Take to be Good Trader !!!!!!!!!!!!

Dear All,

What does it take to be a good trader? Many would say it is an excellent understanding of the stock market, or perhaps a lot of good contacts. Having access to technology and the ability to get trades in quickly are important. But above all else, the one thing that is more important to successful trading is something that seems very simple.

Discipline.

Sounds simple, yet it is the greatest failing of people who lose in the stock market. Successful traders realize thatthey will not be right all the time. Many successful traders are profitable on less than half their trades. Given theselosing probabilities, the reason winners make money is because they cut losses short and let profits run. They havethe discipline to hit the eject button when they are proven wrong. And those who consistently lose money? They hang on for the dream


Fear of taking a loss or fear of missing out on an uptrend cause many market participants to hang on to losingpositions. So often, these traders tell themselves that they will sell when the stock falls to a certain point. However,when it does, they find a reason to establish a new limit. Too much attention is paid to the story and not enough attention is paid to the message that the market is telling.


When you take a position in a stock, you have to establish the point that the market will prove you wrong. Whetheryou choose to base that point on support and resistance levels, or the announcement of news, this point represents a bad outcome of your trading decision. If triggered, the exit sign is flashing. Head for the door.

Failure to take a loss when proven wrong will have two effects. First, it will likely make a potentially small loss grow into a big one. Remember that successful traders take small losses. A big loss takes often has a longer holding period, so it also ties up capital. And it will take more profits to recover.


Second, it will create fear for the trader who is seeing profit and does not want to feel the pain of a loss again. To avoid the potential disappointment of another loss, some traders take profits too early simply to lock in the good feeling that comes with making a win. Unfortunately, to be a successful trader you have to limit losses and let profits run. If you have small profits and big losses, well, you lose.



Maintaining discipline when trading is essential for success. If you have it, only simple rules of trading are necessary for success. Be strong, it is easier said than done.


Thanks & Regards
Abhay Mehrotra

Happy New Year 2010 To all My readers and Clients!!!!!!!!!

Dear All,
May this New Year bring great Success and Happiness to you and to your families..


Thanks & Regards
Abhay Mehrotra