Wednesday, August 22, 2012

A Profitable Trader

Who is a profitable Trader? This is a most basic question. From my point of view, A profitable trader is who making more money than loss; means being profitable. 

Making profit is different according to the stage of trading. Beginner’s trader should not expect to have immediate and ultimate success in trading. They should look for the maintaining there capital and not to lose more money. In the early stage of trading they should look for gaining knowledge and experience. Achieving and maintaining trading success requires continual progress. 

Traders who truly enjoy the “progress” and process of trading do have a significant trading edge over those who do not enjoy learning and gaining experience.


Dinesh said...

Dear Sir,
Yes, very wise advice. I know couple of people who moved on from trading as tried to become millionaire overnight.
I read somewhere that one should trade around 10 % or so of the available capital at a time coupled with a strict stop loss. It should ensure the person to be in the trading business from a long term perspective.

Jitender Yadav said...

Respected Sir,

First of all a very-very happy birthday to you and best wishes from your thousands of fans and followers.

Although trading profits can not be consistent year on year and even master traders can have losing periods but still if you have to classify returns that traders get out of the market, how would you rate them. Lets say for example
0-15% per year
15-20% per year--
20-50% per year etc.

Your Fan
Jitender Yadav

Sameerbhai Limaye said...

I agree Sudarshanbhai. In fact I believe traders at all times should focus on managing their risks well. Profits will automatically come. But if one loses his/her trading capital in early stages of the trading career one loses his/her gunpowder, one may lose his/her confidence and ultimately gives up.

To keep up the motivation even in times of drawdowns one must read more, try not to get disappointed by continuous drawdowns and most important believe in your successful trading techniques on a continuos basis.

Seeking your blessings,
Sameer Limaye

daytrader said...

Dear Sir

This is just a one more attempt to ask a question based on ur book although my first question being unanswered (regarding nifty cycle of 53 page no: 177)
This is regarding for support and resistance ,while reading ur book have observed that u follow the closing price while identifying S&R,and short term trend (page 236-38-40) which is also true while following the candlestick chart
Now my question while identifying the short term trend u follow breaching closing price or just the short term swing high-low*(high and low of 2-3days as defined by larry Williams in his book long term secret to short term trading) and which is the idle way.
Also this is just a request; if any word hurt u I apologize

daytrader said...
Dear Sir

in ur book u have explained that nifty has a cycle of 53days (page no-177), would u pls explain how u come to this particular period or the rationale behind this,
(in my thought some thing like making swing .)pls explain sir ,also how can we calculate for stocks

July 10, 2012 2:57 PM

Rakesh Shethia said...

I have a few doubts about trading breakouts (or failure thereof). Suppose a breakout occurs out of a range. Now, there might be two possibilities - one buy directly at the time of breakout, or wait for a pullback after the breakout. Is it possible to be prepared beforehand what stance should one take - either buy rightaway or wait for a pullback? What should be the stop loss for the breakouts, the other end of the range, or just level of re-entry into the range. Uptil what level should one consider a breakout as a failure? And, does failure warrants entering the trade on other side?