Hi to all my readers and friends,

Trading is all about mental and physical game which provides an intellectual, physical and emotional challenge of the highest order. An ideal private trader has the freedom to command their own time as they wish, to run to one's agenda, to make their own decision and to accept fully the responsibility for what you have committed

KNOW YOURSELF.

Today's winner will not guarantee tomorrow's success. Because the market is perpetually on the leading edge of chaos. We all have to learn trading discipline and by confining our main efforts to a few stocks, that you know well, I mean very well, so we can increase our chances of success.

For a pro private trader, if he doesn't trade, he doesn't eat. As a private trader, with a day job, you have plenty time but little capital. If you don't trade, you simply go back to work. Either one will make up of emotions, philosophy and intelligence - and the final analysis will determines your success or failure as a trader.

The moment we go from contemplation and analysis to action, we are assailed by the market crowd. Like a person standing on the edge of a tall building, some of the crowd will shout "Jump, jump" and others are yelling "Don't do it" 

THE PASSING BY CROWD.

Some of the crowd is just passing  by but it doesn't stop them for giving advices. More or less, traders are taking bets, some are traders and some are investors, confident that if they missed todays action the show will be repeated tomorrow and the day after tomorrow and the day after. We can profit from these crowd differences and the way the differences impact on the market behavior. In the same way, the process of trading is different from that of investing, the psychology of the participant also different.

THE BROAD DIFFERENCE BETWEEN INVESTORS AND TRADERS.

Broadly speaking, as an investor, they see market as a long term market trend. Invest correctly and  this can be profitable but only suitable for cash that you can afford to tie-up for years. Strong emphasis on dividend and capital return.

As a  trader, it is all about taking advantage of the short and immediate term price differences, or fluctuations, managing risk and understanding the nature of trends. And not by your entry, but by your EXIT 

THE  MARKET CROWD SENTIMENTS AND CHAOS.

All this group, investors, private traders, funds, syndicates, banking and institutional traders, and others make up the crowd. All Market sentiment is reflected in the action of this crowd.

Unlike individuals, crowds tend to behave in a predictable fashion. When we talk about crowds, we refer this to the crowds characteristics. A crowd is more than a group of people assembled in one place at the same time. A marketplace may be crowded, but full of small groups people who do not interact with each other.

But as soon as the fire alarm went off and someone yells "Fire", the crowd in the marketplace behaves like a herd and the common emotion, these strangers become linked with another stranger by virtue of the event and their reaction to it. Their fear causes the stampede.

On the other way round, if someone shouts out " Fire Sales" the crowd will act otherwise in the same common emotion and react differently. All hell breaks loose. These crowd's reactions will influence the sentiment of a marketplace.

LEAVE INSURANCE ON THE TABLE.

Trading is not about the one, and only opportunities of a lifetime. It is a consistent approach to take profits from the market time after time. Leaving money on the table  with unrealized  gains may continue to climb as the crowds surges further before collapsing. Identifying the crowd, is very important. The profit realized is more important. 

A good trader constantly hones and refine their entry and exit techniques. They are learning the way to recognizing these opportunities in individual stocks and know how to trade. A good trader is profiting along the market crowd sentiment and chaos.

A PRIVATE TRADERS LIFE.

Every trader has a losing position. However, successful traders don't let those positions wipe them out. They apply for the 36 strategies, understanding that retreat is another form of an advance because as a good man does not fight a losing battle.

The longer they have been trading, the more willing they are to take a series of small losses, in pursuit of superior gains later. Trade is not about 100% right. It's about making the right profitable call and ensuring the wrong decision is cut short and paid for as cheaply as possible.

PROSPERITY IS A GREAT CHALLENGE.

Getting to prosperity is a great challenge. Incurring small  losses are part of our process of learning  to trade, and handling them correctly keeps us going on. If we ignore huge losses, it will wipe us out, we will never learn how to trade. Trader cannot be held liable for large losses,  it will knock off the trader from the market entirely.

A TRADER'S PHILOSOPHY.

Here is what I have come to believe - There are two kinds of philosophy- the academic kind and the everyday personal kind. To me it is your everyday personal philosophy that really counts. Your everyday philosophy is what you believe about the everyday stuff. Its about - Money, work, worry, success, failure, friendship, family , love and future. 

Everyday philosophy is what we use to explain life's up and down. Its the foundation on which we build our life. Often it is the the reason that we give ourself to persist - or quit. People who are happy are not necessarily the smartest or the richest, or the most talented. But have a life philosophy that serves them well. 

Happy and effective people seem to share certain philosophies on life. 

 I awakened long time ago, but have one weakness, I trade less than a dozen time a year, happily and effectively.

Till then, only quit when you have succeeded. 

Bye.

P/s: A happy and effective traders never need to trade everyday.  If you want to trade a stock because you want to own it with a valid reason, anytime is a good time. However if you want to make a buy call for a quick profit, this is totally unrelated to intrinsic values. Eventually the underlying stock will be unsustainable and chaos will ensues