Something Special & Young Passion.

Trading with consistency is something special! Markets give profits and losses, so that is not within our control. But we can control the process of our analysis. We can keep this consistent. Here is an example.

In Trend Analyzer, there is an indicator called TA-Stoch. The indicator identifies buying opportunities in uptrend, and selling opportunities in downtrends. This implies that the trader needs to be aware of the trend using independent analysis, but that is a requirement for many discretionary methods.

The chart below is for ACC.

I selected the stock at random. The trend is assumed to be up. TA-Stock gives a buy signal when it falls below 20. Actual buying is done using (a) Bullish candle, (b) Cross above previous high. Once inside a trade, previous lows are used as trailing stops. Since this is a plan for a swing trade, exits are also made with minor trendline breaks, bearish candles. This is a simple strategy. It Works! You can modify this method to work with your favorite momentum indicator.

Or, Passion for trading in the younger generation. Shabsaf says “If some have passion in any work, he can make money (little or more) but they wouldn’t have to lost any money what they earned.”

Gourav has answered the question of how to keep your passion without losing money “For last many months I havent taken a singl trade but still keping trake as if I have a position in the market.I am not trading because of insufficient funds however guding my friends in trading the NIFTY and i becaome very happy when they make money in my suggestion”

Shabsaf has a fair point. We must have a passion that is sustainable.

Traders can survive only if they do not lose money. We lose money because of indisciplined trading. If we face a loss we may well end up getting out of trading. Therefore, any new trader should have capital preservation as the main, primary objective. Trade in small volumes. Do not increase your volume in your initial years in this buisness.

An equally important point is to maintain consistency in our trading approach. Have a set of rules, then follow the rules. This is much more difficult than not losing money. If you are consistent, you are actually going to make money, even in the starting period as a trader. For example, if you trade using MACD, just use MACD. Remember, with every method, you have to add the examination of price charts. But, please be consistent.