NOVEMBER 20199Be patient and always keep learning from your mistakes. Remember, even a rocket scientist goes through years and years of training before he can make itIt therefore becomes important to cut your losses at a predefined stop loss and also take profits at a predefined target profit per-centage. It is important to not get emotionally carried away by fear and greed, instead stick to your game plan.Remember 40 percent of all the trades in the market are taken by HFTs and algorithms in India. They have so much fire power that they can move the market. As traders, we benefit from finding that move and join them and not stand against following the trend. If you find yourself on the opposite side of the trend, get out of your position and don't be afraid to switch sides.3. Have an EdgeThere are over 20 lakh traders in India who participate in the stock markets every single day. They all have access to the same informa-tion that you do. They look at the same charts and are observing trends. Yet, over 90 percent of trad-ers lose money in the market. In or-der to be part of the 10 percent that doesn't, it becomes imperative to have an edge in the market. What is that edge?The edge can be one or more of the following: being objective, not letting emotions get in the way, having access to market research and analysis that others don't, hav-ing a game plan an the discipline to execute it well.Simply put, you need to have a strategy which you have validated, and you need to execute it well. Rule 4: Have a Strategy, ALWAYSTrading without a strategy is like trying to find a needle in the hay-stack, in the dark. You always need to have a strategy before you make a trade. The complexity of the strategy may vary, you can have a simple price based strategy in mind or a complex one based on technicals, but you need to have one nonetheless.The probability of making mon-ey in the long run becomes higher as you practice the art of creat-ing trading strategies, backtesting these strategies and taking them live in the market to see how it be-haves under various circumstances. You need to have at least 5 techni-cal indicators that you are comfort-able with and use them quite often to see some good results. We cre-ated Streak to facilitate this pro-cess and make it simple for every-one. If you are using then you can deploy as many as 100 algorithms (without programming knowl-edge) and wait for signals with zero margin utilised.And finally, I want to leave you with these thoughts.The markets have been running for the last 100+ years. Do not take a trade with an unwaverable convic-tion and don't marry your position, be it bullish or bearish. Be flexible to switch sides if the need arises and always have a Stop Loss in case the trade goes bad and make sure you only carry trades that you are comfortable with.Be patient and always keep learning from your mistakes. Re-member, even a rocket scientist goes through years and years of training before he can make it. No matter how good you think you are, use the latest tools available in the market to sharpen your skills.
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