Trading secrets........

In continuation of secrets to make large profits from trading , I have written three more secrets to ensure higher profits 

Secret 4- When in doubt, Get out

It is better to get out if things are not working according to plan. A trader’s judgment will deteriorate the longer he sticks on a losing position and he might take wrong decision at extremes. There is an old saying

‘It is prudent enough not to stand in middle of railroad tracks while decision is being taken that train coming is freight train or illusion’

Secret 5- Diversify

Risk should always be distributed among variety of trade and markets. Capital should be divided into tenths and risk should not be more than 10 percent on one trade.

Secret 6- Correctly pyramid

In a trending market, pyramiding good position can make big money. Pyramid should never be reverse one i.e. add greater number of contracts than initial position as market moves their way. It is advisable to decrease size of position through the journey and not increase it. Follow following rules to gain from pyramiding-

·         After long advance or decline, never try and make pyramid.

·         Use technical indicators to pyramid.

·         Pyramid should be made when trend first turns up or down after move down.

·         It is safer to pyramid after market moves out of accumulation or distribution.