Be Patient With Winning Trades !!!!!!!

Dear All,


 This is the mistake we always do!!!!!

Tonight’s topic is about how to handle winning trades vs. handling losing trades. Actually the way you’re dealing with this common trading issue will determine your fate as a trader. Depending on what you do with your winners and losers you will either end up being a profitable trader or a trader losing money. A typical character trait of amateur traders is the inordinate amount of time they spend thinking about their biggest winners. They constantly want to take profits because of their need to satisfy their ego  and their inability to cope with greed.  Their thinking goes like this: “I should take profits because the stock has gone up.”


Instead, they should do the exact opposite. They should cultivate an emotionaly detached approach to trading, and most of their time should be spent monitoring and managing the losing positions in their portfolio. On the other hand a typical character trait of winning traders is the ability to cut losses. A few market adages that come to mind:

Winners take care of themselves
Patience is a virtue
Ride your winners
Stay calm and focused
Cut your losses
Always use stop losses
Do more of the things that work
Never add to a losing position

Rule : Be patient with winning trades; be enormously impatient with losing trades. Remember it is quite possible to make large sums trading/investing if we are “right” only 30% of the time, as long as our losses are small and our profits are large.

  Rule : Of all speculative blunders, there are few greater than selling what shows a profit and keeping what shows a loss.


Rule : Controlling losers is a must; let your winners run out of control

Conclusion: Think twice before you sell a big winner. Instead, ask yourself why that huge losing position is still part of your portfolio.

The best traders have no ego. You have to swallow your pride and get out of the losses.

Thanks & Regards

Abhay Mehrotra

Nifty Neo Wave Analysis : Make Or Break ????

Dear All,
                                                                  Nifty at Imp Trend Decider Level

Imp : This Update is Strictly for Educational Purpose Only 

M : 9873511276 

Thanks & Regards 

Abhay Mehrotra 

Bank Nifty Neo Wave Analysis : Cracked 600 Points , Levels Bang On !!!!!!!!

Dear All,
                                  On 26 Oct , Updated that we might start Wave C , kindly read http://abhaymehrotra.blogspot.in/2016/10/bank-nifty-neo-wave-analysis-wave-c.html


                                                         Below is the chart we posted on that day

What Happened After Update 

Bank Nifty Cracked 600 Points  

Imp : This Update is Strictly For Educational Purpose Only 

M : 9873511276 

Thanks & Regards 

Abhay Mehrotra 

Bank Nifty Neo Wave Analysis : Wave C Started ???

Dear All,
                                                  We are very close to resistance , can start Wave C

Imp : This Update is Strictly for Educational Purpose Only 

M : 9873511276 

Thanks & Regards

Abhay Mehrotra 

80/20 Rule : Holy Grail of Trading !!!!!!!!!!

Dear All,

                     80/20 Rule ........if Applied properly can enhance your trading success by leaps and bounds .

80 % of time Market is in stage where your chance of profit is only 20% i.e your probabilty of making a successful trade is only 20%

20% of time Market is in stage where your chance of profitable trade is 80% i.e. your probabality of making a success ful trade is 80% .

Less Frequency trades are holy grail for a retail trader !!!!!!

Most of  traders thinks the more they trade more money they make .......but truth is vice --versa .....the less number of trades based on logical setups will enhance your profitable trades .


Choice is your's  you want  to be a profitable trader or want to just generate brokeage for your broker trading every day.




Thanks & Regards
Abhay Mehrotra
M :9873511276

Natural Gas Neo Wave Analysis : Cracked 20% , Levels Bang On !!!!!!!

Dear All,
                                                        On 8 Oct posted that We might  be in Wave 5, kindly read http://abhaymehrotra.blogspot.in/2016/10/natural-gas-neo-wave-analysis-wave-5.html

                                                             Below is the Chart Posted on that day

What Happened After Update 

Natural Gas Cracked from 225 to 190 levels  till now 

Imp : This Update is For Educational Purpose Only 

M : 9873511276 

Thanks & Regards 

Abhay Mehrotra 

The Need To Be Right – Common Psychological Traps For Traders !!!!

Dear All,

            My experience tells me one of the biggest issues traders have is the ever present " Need to   be Right "


Some thoughts on what characterizes great and successful traders.


Great traders graciously accept losses. They don’t need to be right all the time.



Great traders focus on proper execution not on the outcome of a single trade.



Great traders concentrate on good risk management. They constantly manage their open positions.



Great traders are emotionally detached. Single trades do not affect their mood.



Great traders don’t compare themselves to others. They isolate themselves from the opinions of    others.



Great traders are not afraid to buy high and sell low


Conclusion:

Isolate yourself from the opinions of other people. Make trading decisions your own. Focus on proper execution. Have the courage to do the right think because it is Right .


The most important rule of trading is to play good defense, not great offense.
- Paul Tudor Jones



Thanks & Regards
Abhay Mehrotra

M&M Finance Neo Wave Analysis : Cracked 13% , levels Bang On !!!!!

Dear All,
                         On 4 Oct Shared Update that M&M Finance Might complete Wave 5 , Kindly read

http://abhaymehrotra.blogspot.in/2016/10/m-finance-neo-wave-analysis-close-to.html


                                                              Below is the chart we posted on that day

What Happened After Update 

M&M Finance Completed wave 5 exactly ar 404 levels 

and Collapsed 13% 

Imp : This Update is For Educational Purpose Only 

M : 9873511276 

Thanks & Regards 

Abhay Mehrotra 

Copper Neo Wave Analysis : Consolidation Continues , Wave C will be starting soon ???

Dear All,
                                            We might be in Wave C starting in Copper and consolidating

Near to Support Area

Imp : This Update is for Educational Purpose Only 

M : 9873511276

Thanks & Regards 

Abhay Mehrotra 

"Best Looser is Long Term Winner "---- Phantom of Pits

Dear All,
                       While reading the book Phatom of Pits " , I Came Across this phrase "Best looser is long Term Winner " . This is so close to reality of Professional Trading .

I read hundered of articles on trading, every body is focus how to win in markets , how to make profit etc.. nobody ever concern about loosing ......ametuer trader looks for methods and tips that can give then 100% Trade win ratio . Some people boast of 100% trade win ratio with no loss gurantee .

Just ask your self ,can you find a Single human being who have never done any thing wrong in his life .

Great people achieve success because they learn fast from there mistakes , take feedback from it and not to repeat the same mistake again .

Thomas edison failed 10000 times in making a light bulb ......should you call him a looser ???


To make mistake is being human , humans tends to learn and progress from mistake , its not that
that Successful people never did mistakes in their life .


Trading is same as life , professional trader's make mistake , they learn , they adapt and they love being wrong or should i Say being looser .

In Trading people hate to loose , but in reality Trading is a Business of Managing losses Effectively


Trading is all about defining your risk and play the game according to it . Being  a best looser will make you stand till the end and enhance your chance of winning the game in long term.


Please remember learn to loose Effectively  first .



Thanks & Regards

Abhay Mehrotra

The Art Of Trading Without Trading !!!!!!!!!!!!

Dear All,


                                   I start with Quote from One of the Best Trader of All time Jesse Live more

" After spending many years in Wall Street and after making and lossing millions of dollors I want to tell you this : It never my thinking that made big money for me . It always my sitting . Got that ? My sitting tight ! It no trick at all to be right on markt " .............Jeese livemore

Here Jesse reffreing to sitting tight for trade that is according to your trade plan . You need to wait , wait and wait till right setup comes in market as per you trade plan .


   The Biggest Edge the retail trader has , is not to trade .........surprised , let me explain , most of strong                        hands like Fii , Dii need to be have positions in market every time ......regardless of market conditions .
             
    We as retail traders has got this "Big Advantage" Not to trade when our trading plan don't permit us You can't control market prices , only thing that you can control is to put your money on trades when and only when your trading plan gives you desired conditions to go for trade ,like risk reward ratio to do so .


But we are not aware of this advantage or should i say never think of it .......just give a thought , in whole trading  process what is under your control ......"your entry price "  is the only thing that you can control .........if you use limit price order ........in market price order even that is also not sure at which price you get filled for trade , then why you jump on trades without giving a thought that if you are not getting desired entry price and you have not put a trade is your advantage .....by not trading you are using it as your advantage.

The problem with most of traders is that they want profit on every trade , want to trade every swing of market  and ultimately take losses in market .

Intra day Trader - Only concentrate on 2-3 trades max in a day , if you cant find a single trade as per your trading plan ......dnt worry you just have use your biggest advantage in your favour

Swing Trader -Only concentrate on 2-3 trades max in a Week , if you cant find a single trade as per your trading plan ......dnt worry you just have use your biggest advantage in your favour

Positonal Trader - Only concentrate on 2-3 trades max in a Month , if you cant find a single trade as per your trading plan ......dnt worry you just have use your biggest advantage in your favour

Dnt Trade Market , Trade according to your Trading Plan.


Next time you want to take a trade think 100 times why your taking that trade .........as you will be using the only and the only biggest advantage you have as a trader by simply not trading   .


Hope you have find this article useful

M : 9873511276

Thanks & Regards

Abhay Mehrotra

Quotes from Diary of a Professional Commodity Trader By Peter Brandt !!!!!

Dear All,
                                                                  Must Read for All Trader's 

p14. “Consistently successful trading is founded on solid risk management.”

p14. “Successful trading is a process of doing certain things over and over again with discipline and patience.”

p31. “As many as 80% of my trades over shorter periods of time will be unprofitable. The probability of my very next trade being profitable is less than 30%.” (Looking for 90% accuracy see how one of the best trader of the world trade with only 40%--30% Accuracy )

p34. “More often than not, a market will defy what its chart structure implies” [but Peter remains a dedicated, profitable and long term chartist].

p38. “Boundary lines [i.e. trend lines] do not need to be redrawn to accommodate [intraday single-event] out of line movement.”

p41. “My experience is that there are far more false or premature breakouts of slanted chart lines than in the case of horizontal boundaries.” p129. “Normally I do not trade trend-line violations. Trend lines fall into a category of chart development I called diagonal patterns. Yet, the more a market tests a trend line, the more valid-and tradeable-an eventual violation becomes.”

p41. “[After a pattern break out] I generally abandon any position that has a significant return to the pattern.”

p43. “I believe that my net bottom line as a trader would have improved if I had exited every trade that closed at a daily loss.”

 p142. “My net bottom line over the years would have improved if I had exited all trades that closed against me.”

p47. “As a general rule, the minimum move following the completion of a chart pattern should be equal to the height of the pattern itself, although the exceptions to this rule are numerous and complex.”

p53. “As a general rule, I will attempt one pattern recompletion per major pattern. After that, I will count my losses and go shopping elsewhere.”

p60. “Trades that are the emotionally toughest to execute are often the most financially rewarding.” 

p128. “Trades that are emotionally easy to execute are often trades consistent with the conventional wisdom of the marketplace. Conventional wisdom is usually wrong.”

p74. “While chartists often attempt to jump the gun on a pattern, markets usually make it abundantly clear when it is time to climb aboard.”

p80. “It is important for a trader to use similar time frames to both enter and manage a trade.”

p88. “The more I follow the markets during the trading hours, the more apt I am to make an
emotionally driven decision to override my trading plan...emotional reactions to intraday trading will be detrimental to my net bottom line over any period of time.”

p102. “The biggest temptation after a premature stop-out is to get right back in before receiving another solid signal. Getting into this cycle throws discipline and patience right out of the window.”

p117. “I cannot allow myself to be stressed out whether a certain trade was profitable or not. Profit cannot be the direct focus of my attention because I have no control over the outcome of any given trade. Order entry is the only thing I can control. My challenge is to maintain the patience to wait for t my pitch and the discipline to swing when my pitch is offered. Swinging at pitches outside of my sweet spot is the single biggest source of trouble for me.”


January 2012
p117. “I am constantly studying and analyzing my trading performance for two major reasons: to determine if my trading plan is in sync with the markets and to determine if I am in sync with my trading plan. ...either can represent a real problem.” (Most trader's dont even have written trading plan ..........i ask you one question do you have written trading plan ??? I guess you dont have !!!!!)

p119. “Every successful trader I know has developed a criteria for appraising trading performance.”

p152. “Breakouts should be decisive in order to be valid. Drawing tight pattern boundary lines is an invitation to get sucked into a false or premature breakout.”

p154. “As a trader, I need to constantly remind myself that I cannot afford the luxury of being bullish or bearish. Bullishness and Bearishness represent an emotional commitment. I need to limit myself to positions. Opinions don't matter.”

p156. “Trade identification is the least important of all trading components. The trading process itself and risk management are much more crucial components to overall success in trading operations.”

p157. “The most profitable trades are those that breakout and never look back.” p165. “If at first you don’t succeed, be ready to lose and lose again.”

p160. “Trading dilemmas never end. A trader never solves all the issues standing in the way of greater success.”

p166. “The best and largest patterns are commonly comprised of many smaller patterns, mostly failures.”

p173. “The battle to profitability is with one’s self. Successful trading is learning what to do and how to do it and then overcoming one’s emotions to get “it” done (discovering the “it” is the challenge for traders, and the “it” is different for everyone).”

p189. “[Trading plan] flaws are never visible during the good months and good years. Good times provide cover for the deficiencies of a trading plan.”

p194. “Triangles are not valid when prices work too far [more than 2/3rds to 3/4ths] to the apex.”

p197. “The single most important price of the day is the closing price, posted mid-afternoon each day. This is the price at which position traders, as opposed to day traders, are willing to hold a position overnight. Even though I often enter and exit a position intraday, the closing price is the only one that really matters. Everything else is noise.

p229. “Make a chart prove itself. Do not lead a breakout.”

p230. “Do not chase a missed signal. There will be trading opportunities next week, next month, and next year. Chasing signals can lead to other serious breaches of trading practices.”


Thanks & Regards
Abhay Mehrotra

Aluminium Neo Wave Analysis : Zoomed Up 6% , Levels Bang On !!!!!!!!

Dear All,
                                On 20 Sep , posted Update that aluminium can start Wave B , Kindly read http://abhaymehrotra.blogspot.in/2016/09/aluminum-neo-wave-analysis-close-to.html

                                                          Below is the chart We posted On that day

What Happened After Update 

Aluminium Zoomed Up from 105 to 112 Till Now 

Imp : This Update is Strictly For Educational Purpose Only 

M : 9873511276 

Thanks & Regards 

Abhay Mehrotra 

How to Become Doctor In Two Days !!!!!!!!!!

Dear All,
                         


  Can you think of becoming Doctor in 2 Days , Then why people think that they can become                                         trader in 2 Days ???.

Trading like any other Professions require Following steps  to Succed

1. Training :  Have you seen any body  becoming doctor / engineer / lawyer in 2 days forget about being sucssecful , the answer is no

Doctors go through rigirous Training , MBBS - 5 years + M.S. -- 2 Yrs , then they practise in some hospital for 2-3 Years and then they stand on there own . Total Min yrs Spent on learning or Training 10 Yrs .

Lawyers  complete LLB in 5 Yrs & After practising for atleast min 5 yrs can thing of starting on their own . Min ysr spent on learning or Training  10 Yrs.


Professional Players spent hours & hours on training , Tiger Woods used to have training schedule of 12 Hours per days , Our Great Sachin tendulkar Used to train min 6--8 Hours Daily on Nets .


Remember Your are Competing with one of the best & sharpest Mind in the world of Trading , You dont have slimest of chance if you are not prepared well.


Becoming a Professional Trader require rigirous amount of training , which most people dont do and then they loose there money in Market .



2. Planning :  Doctors have a set guide lines / Dignosis which they follow in treatment of people / same applies to professional athelets , they plan there innings or game and then tacticaly execute them on field .

As a Trader have  you ever plan your trades or Have gone through these question before taking Trades

1.Why Trading ......... Have you ever asked yourself why you want to trade ??

2. Your Style of Trading .... Positional / Swing / Intra day ??

3.What's your Edge in Trading ???

4.How much time you devote In studying Markets ??

5.Have you define which markets will you trade ???

6.On what basis you decide to enter into a trade ???

7.Exit criteria ??

8. Money Management rules ??

9. Position sizing ???

10. Are you having a Written Trading Plan ??



You need to Plan your Business of Trading  else chances of success are almost Nil .



3. Discpline : Doctors / Lawyers / Professional Athelets / Engineers they follow discpline in these profession , same applies to Trader's Also . Displine to follow your Trading plan make the diffrence between a Professional  Trader or Amatuer Trader .


The moral of the Story is you need intense Training / Planning / Discpline to be come a Profitable Trader ...........else you will kepp loosing money .




Thanks & Regards

Abhay Mehrotra

M :9873511276

Natural Gas Neo Wave Analysis : Wave 5 Making Ending Diagonal ????

Dear All,
                                               Natural Gas Might be making Ending Diagonal in Wave 5

Imp : This Update is Strictly for Educational Purpose 

M : 9873511276 

Thanks & Regards 

Abhay Mehrotra 

Silver Neo Wave Analysis : Wave C subdividing ????

Dear All,
                                                             Silver Might be in Wave C and subdividing

Imp : This Update is Strictly For Educational Purpose Only 

M : 9873511276 

Thanks & Regards 

Abhay Mehrotra 

Natural Gas Neo Wave Analysis : Zoomed Up 10% , Wave 5 Still On ????

Dear All,
                              On 20 Sep , posted that we are in Wave 5 and Sub dividing , kindly readhttp://abhaymehrotra.blogspot.in/2016/10/natural-gas-neo-wave-analysis-levels.html


                                                   
                                                     Below is the chart we posted on that day

What Happned After Our Update 

Natural Gas Zoomed  Up From 195 to 214.6

Imp : This Update is For Strict Educational Purpose Only 

M : 9873511276 

Thanks & Regards 

Abhay Mehrotra 

Natural Gas Neo Wave Analysis : Levels Bang On !!!!!!!! What Next ????

Dear All,
                        On 20 Sep , posted that we are in wave 5 and subdividing , kindly read http://abhaymehrotra.blogspot.in/2016/09/natural-gas-neo-wave-analysis-wave-5.html


                                                              Below is the chart posted on that day

What Happened After Update 

Natural gas from 195 , Hit 207 levels 

What Next 

Imp : This Update is Strictly For Educational Purpose 

M : 9873511276 

Thanks & Regards 

Abhay Mehrotra 

Gold Neo Wave Analysis : Cracked 1000 Points , Levels Bang On !!!!!!!!!

Dear All,
                       On 4 Sep , posted that gold started  Wave B , Kindly read http://abhaymehrotra.blogspot.in/2016/10/gold-neo-wave-analysis-wave-b-started.html

                                                            Below is the chart we posted On that Day

What Happened After Update 

Gold Cracked 1000 points 

Imp : This Update is Strictly For Educational Purpose Only 

M : 9873511276 

Thanks & Regards

Abhay Mehrotra 

80/20 Rule : Holy Grail of Trading !!!!!!!!!!

Dear All,

                     80/20 Rule ........if Applied properly can enhance your trading success by leaps and bounds .

80 % of time Market is in stage where your chance of profit is only 20% i.e your probabilty of making a successful trade is only 20%

20% of time Market is in stage where your chance of profitable trade is 80% i.e. your probabality of making a success ful trade is 80% .

Less Frequency trades are holy grail for a retail trader !!!!!!

Most of  traders thinks the more they trade more money they make .......but truth is vice --versa .....the less number of trades based on logical setups will enhance your profitable trades .


Choice is your's  you want  to be a profitable trader or want to just generate brokeage for your broker trading every day.




Thanks & Regards
Abhay Mehrotra
M :9873511276

Gold Neo Wave Analysis : Wave B Started ???

Dear All,
                                                                     We might have started Wave B

   

 Imp : This Update is Strictly For educational Purpose Only

M : 9873511276 

Thanks & Regards 

Abhay Mehrotra 

Nickel Neo Wave Analysis : Wave 3 or Wave C Subdividing ????

Dear All,
                                                 We Might be in Wave 3 or Wave C and subdividing

Wave 3 or C 

Can Complete at following levels 

Imp : This Update is for Strict Educational Purpose Only 

M : 9873511276 

Thanks & Regards 

Abhay Mehrotra 

Why Trader's Loose Money !!!!!!!

Dear All,

Almost 95% of traders loose money in Market.

Reason are plenty ..........but we discuss few of them

If have answers to following question then only you making succesfully in trading else you are loosing money .


1.Why Trading ......... Have you ever asked yourself why you want to trade ??

2. Your Style of Trading .... Positional / Swing / Intra day ??

3.What's your Edge in Trading ???

4.How much time you devote In studying Markets ??

5.Have you define which markets will you trade ???

6.On what basis you decide to enter into a trade ???

7.Exit criteria ??

8. Money Management rules ??

9. Position sizing ???

10. Are you having a Written Trading Plan ??

Trading is Business nothing else .............if your expenses are high (losses) then you will not earn profit in a business ......same apply to Trading also

Most people thing that only way of making money in trading is to have 10 out 10 or 10 out of 8 trades to be successful ............it is absolutely wrong

let me give you example ..

let say i put 10 trades with 40% accuracy

Winning trades 4 with an average profit of 6 rupees per trade ---4*6=24

Loosing trades 6 with average loss of 1 ruppes each 6*1=6

Profit in 4 trades =24

loss in 6 trades = 6

Net Profit =18 rupees


so see even if your accuracy rate is only 40% you still make good money ......so if any body claiming 90% and 99% accuracy he is fooling you this is blunt truth that most people dont understand

If you follow this mantra only you will make money " cut your loss fast and let your profit run"

very easy to say but very difficult to follow .

Most Advisory people claim 90%---99% accuracy ...........use your common sense if any body has this kind of winning ratio he will become multi millionare in very short time and why he will sell his advice .

"Trading is all about Probablities never certainity "

People sell magic software , claims giving operators tips ............and catch greed of innocent traders

"Consistent money always comes from hard work "


Hope you find this post useful !!!!!

Thanks & Regards
Abhay Mehrotra

Zinc Neo Wave Analysis : Levels Bang On , Zoomed Up 5% !!!!!!!!!!!!!!

Dear All,
                             On 20 Sep , posted updated that we might start wave B , kindly read http://abhaymehrotra.blogspot.in/2016/09/zinc-neo-wave-analysis-wave-b-can-start.html

                                                        Below is the chart we posted on that day

What Happened After the Update 

Zinc Zoomed Up from 150.50 to 158.50

Imp : This Update is Strictly For Educational Purpose Only 

M : 9873511276 

Thanks & Regards

Abhay Mehrotra