Sunday, September 30, 2012

Success in Trading



We often read it and listen to people saying that trading is a losing game and 90% of the traders lose money. Now we have not heard about any actual conclusive study about the percentage of successful traders but yes many people lose money in trading. On the other side there are number of traders who are very successful in it and earning their living out of it and if they can do it you can do it too.   

Ari Kiev in his book “Trading to Win”, states “believing that an outcome is possible, makes it achievable.” He quotes the example of famous runner Roger Bannister who was first to break the barrier of running a mile under four-minutes. After he achieved this feat people started believing in this possibility and soon many other runners accomplished this once considered “impossible” feat.  

If you are doubtful of your winning, how will you be able to put your 100% effort in it? (Please note I have said 100% effort and not 100% capital.) Trading gains are certainly not as easy as those young supposedly MNC workers in web ads claim to make by trading forex just part time. Trading can be very rewarding businesses provided (1) you are dedicated to first learn trading (2) you have a robust system (3) you are disciplined to follow the rules. (4) You treat it as a business.

Readers are welcome to share their own experiences about success in trading.

(Contributed by Jitender Yadav)

10 comments:

SMART Trader said...

IMHO, there are three stages in trader development
1.Defining the market structure. Ie a frame work within which price moves
2.Decide upon the tactics to trade these moves
3.Decisive action and deliberate practice.
Tackle these one by one
Too much to write as a comment
Read More

Dinesh said...

Dear Sir,

I think you are spot on but I would like to add something from your earlier blogs that traders should be flexible enough to change the strategy. Although you have covered this aspect in point number 3 - follow the rules.

I think one should think / strive to win but not every trade. If my trade is not going as per my wish, the only action I can take is to accept the defeat and initiate a new trade. I mean I can not do anything to change the direction of the market and so I change myself. It is different from other forms of 'wins' where I can put in my 200 % efforts to conert my defeat into a win. For example, by running faster or by staying awake whole night to deliver a bug free software code but all that is not possible in trading. So, in trading - accepting defeat, closing the loss making trade and initiate a new trade which hopefully will be profitable, is like winning the game.

Regards,
Dinesh

jose antony said...

what do you meant by "2) you have a robust system". I am using a system provided by angel broking. It helps to create all the general indicators needed. It looks sufficient for me now. Please comment what else is required to improve trading.

JK Jorwal said...

You are rocking. Nice articles.

Rahul Ahlawat said...

what do you mean by
"(2)you have a 'robust system'."

Rahul Ahlawat said...

what do you mean by
"[2]you have a 'robust system'." ??

Zumit Zingh said...

Those who claim that having a real-time systems that gives tick-by-tick data flow drastically improve their odds in market are just fooling themselves. It is certainly not about that. Robust systems gives flexibility to do robust analysis and back-testing, freedom to make your own indicators and signals.

Dinesh Rishi said...

Trading can be very rewarding businesses provided
(1) you are dedicated to first learn trading
(2) you have a robust system
(3) you are disciplined to follow the rules.
(4) You treat it as a business.

KISS

You "Kept it Simple Sir"

shabsaif said...

Let me allow saying something by points as you mentioned.
It’s very true that in our social life, we always listen to people saying that trading is a losing game and 90% of the traders lose money, that’s why firstly no one want to become trader, if you ask a teenager “ what you want to become after pass 10th Class” they may say “ Doctor, Engineer, Professor, CA, teacher, pilot etc.” But no one say (or may be very few) that I want to become a trader. Even if you want to become a trader you may not to say openly that I want to be a trader because of our social life (They call you want to become “satoriya”)
So now point is we mentally not become so very hard which is the first requirement of a trader, and the result is 90 % failure. But anyway, it’s true that lot of person wants to become trader because they want independent life and less physical work in life. So after earning and saving money they started trading without any practice or without getting proper knowledge. Lot of them quit trading after few days, months or year.
My view as per my experience, every one need some times to become a trader and its depend on your mental ability that how much time you required (May be Three year to Ten years )to become trader, its mean not that after 10 years you will not lose any money, but its sure that your winning trader will more than your losing trade.
Dear Mr. Sudarshan, please let me know your comments. Thanks

trendingnifty2012 said...

Sudharsan sir,
We are missing you during the 12PM and Closing Bell @ CNBC.
Trades taken in Nifty Futures based on your morning comments have been waiting for further direction from you during the later part of the day.
You are greatly missed by all non-technical sound analyst and small retail traders like us

trendingnifty2012