Monday, November 26, 2012

Five Steps to Trading Success

Here are five steps, from different sources.

Vantage Point

1. Track, analyze, and evaluate specific markets  on a daily basis.

2. Find potential trades in specific markets or sectors.

3. Confirm potential trades and select those that show highest probability of success.

4. Define entry and exit positions that meet your strategic goals.

5. Review and Evaluate the trade.


1. Simple is better - only use a few indicators

2. Test, test, test and test some more

3. Paper trade using your trading system

4. Set a proper stop loss

5. Keep your emotions out of it


1. Have a dedicated working environment and structured working hours

2. Have regular performance reviews and keep detailed records.

3. Find a profitable niche

4. Develop a network of contacts and continually upgrade your education.

5. Have the proper mindset.

Kris Mathews

1. Unconscious incompetence

2. Conscious incompetence

3. The Eureka Moment

4.  Conscious competence

5.  Unconscious competence


Chintan DESAI said...

I was just wondering whether trading is a full time activity or a part time.
what i personally believe is trading activity requires good research but once you identify ur stock we need to just wait for the target to arrive. so its a good part time activity. Sudarshan what do u feel about it?

Shashank Semwal said...

Dear Chintan Desai,
Your Question on whether the trading is full/part-time activity is really very interesting and significant. As I had spend almost 7 years on Indian market, but at the beginning itself I realized that trading is not a part-time activity at all. It is the professional which require all sort of attention and discipline as any other profession, and preciously sometime requires more then that. Unlike other profession it is the profession which require least effort to do but, maximum effort to pursue (I know it sound contradictory, but it having sense in-depth.)
Now coming to your second dilemma. As far as I know. Trading doesn't require even-a-bit of research activity (although investment may require). For trader it is 100% game of probability. No research on earth can predict the short-term price movement of market, unless u betting the kind of trade which can make the market upside-down.
Further you can visit my personal blog to

And Happy Trading

How to get pleasure and treasure said...

Hello Sir

Wish u a very happy diwali to u and ur family.Sir I regularly watch ur programmes on CNBC.I am a house wife Initially i started short term investments.Now with ur suggestions i have started trading in F&O segment.I have made some money also.I thank u for the same and please suggest how to trade professionally.As of now i cannot spend any money on trainning.
Thank you once again.
With regards
Sumathi Anand

vipin raveri said...

sir i want to invest in my own in how many and which script should i invest app 10000 p\m.minimum 8 year of goalplz suggest