Some Trading Secrets..........

Technology changes but human nature never changes. Mistakes made years ago continue even today. Markets are our best teachers. Here are some trading secrets for sure shot success. One may not use all the secrets but can absorb just a portion and prevent oneself from getting lost in financial desert.

Some Trading Secrets

1.     The trend is your friend

Major trend must be determined first and one must go with the wind.

When one is in bear market and trend is down, the plan should be to wait for rallies and sell short and not to pick the bottom. This is due to the fact that one might miss the bottom several times on the way down and end in losing money. The same applies in bull market (in reverse).

In any major move, however, there will be corrective moves against the trend. Sometimes sharp correction will be seen because of sudden news but it will be followed by major trend after few days. News may tempt persons to liquidate prematurely. Here

·        Temptations must be avoided.

·        Listen to only market.

·        Never set a fixed price in mind as profit objective( it is bad habit based on hope)

·        Never set fixed time to liquidate either( this way amateurs deal)

Condition do not change, one must learn to change his mind when they do. A wise man changes his mind but a fool never. There is no way one can know exactly in advance how much profit to expect. It is determined by market. The mission is to determine the trend, hope on for the ride and stay on until indicators suggest change in trend and not before.

Always go with tide, never buck it………….

Secret 2-There is probably a reason behind market behind market being cheap or expensive

It moves parallel to ‘don’t buck the trend’ Money can be earned by selling short low priced markets which are public’s favorites and in which large long interest had developed. Alternatively, cash in on expensive markets when everyone is bailing out because of feeling in market of it being high enough for healthy reaction.

It is not the price that is important but the market action.

Secret 3- Quote machine ( tape) will trick you

Watching tape whole day will make trader keep on changing his mind constantly and increases chances of being wrong. Prices tend to look weakest at strongest time and vice versa. It is impossible to stand in front of ‘The tricker’ and identify big moves before they starts. This tricker tape will fool one when accumulation takes place in market.

The tape moves in mysterious ways, the multitude to deceive.