MAKER'S OF MODERN TRADER!


Member Login

UserName
Password
Forgot Password   Submit

Member Registration
SERVICES
Free Service
  Educational Report
  Market Summary
  E-Learning
  Fundamental Query
  Premium Service
Stock Pick :-Indian
  Instant Trade Alert
  Stock Pick Daily
  Stock Pick Weekly
  Futures and Options
  Dynamic Portfolio
  Phone Consultancy
Stock Pick :- Global
  Global Market
EducationalCourses
Basic Course
Technical Analysis
Day Trading
Flliot Wave Principle
Futures & Option
1- On- 1 Coaching
Mentor Program
Software Training
Custom Formula
Seminars
Performance
More Information
Trading System
Getting Started
Research Report
Glossary
 
Special
  Letter to Educator
  Writers Library.
   
 
     TRADING SYSTEM
 
 
   WELCOME || TRADING SYSTEM || TRADING SIGNAL || PSYCHOLOGY || PORTOFOLIO SIZE || TRADING PHASE ||
    STOCK PICK HISTORY || INVESTMENT BASIC || WEIGHTAGE ALLOCATION || GOLDEN RULE || PE MYTH
MAKER'S OF MODERN TRADER

PHASES OF A TRADE

Buy and sell in many respect is an "Decision  Making outcome of the methodical, Procedural and Intellectual thinking of Greed and fear" which a person goes psychologically. Stockleela.com helps an individual to change the way traders passes through intellectual and reflexive phase, see and think about investment and trading in Stock Market

"The most desirable elements of a trader are a keen analytical mind, foresight, courageous conviction coupled with enough conservatism to avoid over-trading, comparative freedom from concern, a wide outlook on all things, good physical health, good power of reasoning and, finally, the courage and ability to act quickly, courageously and forcefully, once his mind is actually made up."
We give below the phases through which a trader pass through psychologically with above elements.
DIFFERENT  PHASES OF A TRADE

Knowledge of Trading Techniques and immediate action followed by discipline, will make you ,a winner in the market. Psychology of trading technique can be broken down into 5 different phases. They are:-

Knowledge or Intellectual Phase:- 3 Phases
Action or Reflex Phase:-  2 Phases.
Type Phase 1: Intellectual start Phase 2:     Reflex action Phase  3:  Intellectual Phase 4 : Reflex action Phase 5: Intellectual
Purpose As per the pre- defined check list for selecting stock select appropriate Technical analysis software  run the query and  & look for opportunities.  On identification of a trade  instantly Open a right  position Long or Short As per the discipline, follow the rules and Manage the trade. Identify the exit. Close the position Short or Long  Review the system discipline and Analyze the trade
Decisions Is it the right selection? Are there  any other factors which have not been considered? How much to trade?  Pyramid the trade. Use the right  order. Use the trade management. Follow the trade and look for the  progress . Do self Performance appraisal for  system. Rules, profit and loss? At what price to close the trade? How much to close the trade? How much time I take to decide the action .
Process Select the right software for analysis. Find out the best  stock  to trade from  the selected group. See for Patterns reversal signals toping out or bottoming out for directional entry. Follow the trade  and use Trade management like initial stop placement and the trailing stop methods  the prices movement supply and demand tilt. Index direction and exit strategy. Review  for Patterns reversal signals Bottoming  out or toping out to review the exit position. Keep the diary of no of trade profitable and loss making and review the system for changes if any.
Emotions Eagerness' and anxiety to trade. Wish, hope and  dreams of multiplication faster. Inner fear and delay or lethargy in decision making. Use excuses. Over confident ignorance. Fear due to loss or for that matter not having risk capital, High hopes,  Greed- getting married to a stock etc. Excuses for the self or administrative problems, Fear,. Lot of hard work required. Stress gets built up for objective decision of  right or wrong or missed trade. If under stress decision making power reduces
Phase 1 - SEARCHING FOR OPPORTUNITY What should I do  and what should be my goal?
Without any position analyzing for new  position is a interesting one. We may spend stress free hours.
One goes through many chart to find a stock which best fits in your system designed for trading. Lots of intellectual process  and skill are involved into it.
In case if you have not found any chart as per your system you may start to see stock which may look very similar to the break out pattern and enter a wrong trade.
To avoid entering into wrong trade one need to define the system  and process without keeping any chances for deviation.
One should enjoy the profession. If one finds this as boring better take some other profession
PHASE 2-OPENING A NEW POSITION LONG OR SHORT:-How fast should I get In?
As per the trading system when you identify a stock to trade for long or short do it without wastage of time and second thought. If you are not sure about the Phase1 don't go to phase 2 and guess.
Phase 3 - MANAGING THE POSITION:-How should I manage my trade as per trading system?
Trade management, like initial stop placement and the trailing stop method and follow up.  Do I follow the rules and Discipline in Trade Management?
It is difficult phase of the trading. When you are in profit you fear that market will take it away or when price move against your trend you hope it will come back. This way traders cut there profit short and letting there losses grow.
If your decision is correct learn to ignore fear, greed, hope, dream and they will start to go away and you will become follower of rules discipline without emotional attachment.
Review of the trade at the end of the day / week to see if you are following the rules and discipline. If  would have happened if you would have followed or not followed.
When your are bubbling with emotions your quality of the decision are at the lowest this being a important phase, most traders loose because traders get carried away emotionally.
When you have favorite stock to trade have a clear trading system for exit so that emotions do not get involved. and without a second thought act as per the system. When ever a position for long or short is taken immediately follow for exit route to profit from pre determined plan.
Phase 4 - CLOSING THE POSITION How  fast do I get out?
Irrespective of Profit or loss or brokers commission or for that matter experts fees etc on review of the trade progress and analyzed for exit do get out of the trade right away. Close it shut the trade but do not forget . Now go to next Phase a very important one.
Phase 5 - Analyze:- How should I review the close position?

"One of the surest ways to get on the path to consistent gains is to continually measure your performance. When you set goals and know where you stand at any given moment, the impetus to do whatever it takes to get there becomes automatic. This is perhaps more the case in trading than in many other endeavors. "

Keep a record of all the trade. This is required since you cannot form a opinion based on few trade. Thoroughly review the individual performance of each trade; the goal the entry the trade management, like initial stop placement and the trailing stop method, the target and exit etc and take corrective steps so as to have better view site next time.

Think about it. Does every setup/plan work every time? Of course not.

Every Trader must deal with loss, take it as tuition fee and know why you are loosing. Never tempt into a " forced  trade to recover loss". Do not get upset if you have followed the rules and executed majority of the trade correctly by going through the above phases.

SUMMARIZING THE ABOVE:-  For ease of simplification we summarize the system of  Knowledge requirement, Art of using,  Decisions making ability into following chart for understanding your stress point and trading your way for consistent profitable carrier.:
  Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Type Analytical Knowledge. Quick Action Intellectual Knowledge  Art &  Skill Quick Action. Knowledge and self appraisal.
Purpose Search for right opportunities Open Buy/ Sell  position Trade Management Close the position Did I close all my Position & Analyze it.
Decisions Use high volume stocks, analyze money and time stop loss for trading & Investment which are giving breakout signals. Buy or sell after the stock has moved high or low of the time frame of analysis as per the trading system. Use stop loss orders if it breaks the system defined low. Use time stop loss . Close the position on achievement of target or as per the pre defined system. Did I follow my rules on this one?
Process Select a right Technical Analysis software, time frame to Look High Volume Stocks. Run the query by click or enter.

Book the order by click of the mouse or through broker.

 Watch price movement and review initial stop placement and the trailing stop and time stop loss as per the tie frame & pre defined trading system. Visual analysis and click. See the charts for a bigger time frame  for entry and exit.
Emotions Eagerness impatiens and Boredom. Indecision. Lethargy Fear of loss and greed of profit Indecision . Fear and  Risk of loosing the risk capital It is serious  phase to review self appraisal for Profit , Loss, Time spent Trading System and  emotional damage.
Above will guide you appropriately to thoroughly review the individual components of each analysis, follow-up and decision making process of wining and loosing  trade; the entry, the trade management, like initial stop placement and the trailing stop method, the target and exit etc so as to have better view site next time and improve the mind set and psychology.