Golden Rules

  Never borrow and invest/trade in Share Market

  Do not over trade

  Before entering trade always calculate risk involved

  Maximize Your Profits, Not the Number of Trades.

  Make good decisions and winning will take care of itself.

  Be Patient Enough to Wait for Good Trades.

  Consider your account size for appropriate trading.

  Cut Losses Early, Protect Profits with Trailing Stops.

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TRADING PLAN

MANY TRADERS STARTS TRADING WITHOUT ANY PLAN. SOUNDS UNBELIEVABLE BUT IS UNFORTANLY THE TRUTH. IF YOU WANT TO MAKE MONEY YOU NEED TO TRADE WITH A PLAN

PLAN
WHERE YOU WANT TO ENTER A TRADE ? HOW MUCH MONEY YOU ARE GOING TO RISK ? WHERE YOU ARE GOING TO GET OUT IF YOU ARE WRONG ? WHERE YOU ARE GOING TO TAKE PROFITS IF YOU ARE RIGHT ? KNOW HOW MUCH MONEY YOU ARE GOING TO MAKE IF YOU ARE RIGHT ? NEVER TRADE WITHOUT A PROTECTIVE STOPLOSS !
RULE:: DONT TRADE WITHOUT A TRADE PLAN !

MONEYMANAGEMENT
CREATE FIXED RULES HOW MUCH MONEY YOU WANT TO RISK PER TRADE AND STICK TO YOUR RULES. DONT USE A RISK FROM MORE THEN 5% PER TRADE !
RULE:: USE MONEY MANAGEMENT !

PROTECTIVE STOP LOSS
ALWAYS PLACE A STOPLOSS WITH THE INITIAL ORDER. NO MENTAL STOPS! MANY TRADERS SAY: "I USE MENTAL STOPS" AND CHANGE THEM MENTAL WHEN THE MARKET GOES AGAINST THEM. WITH A MENTAL STOP, AS SOON AS THE MARKET HAS GONE THROUGH YOUR STOP LOSS PRICE, YOU WILL NO LONGER ACT ABSOLUTELY RATIONAL. NOW, YOU ARE MOST LIKELY TO MAKE A DECISION BASED ON FEAR, GREED AND HOPE.
RULE:: NEVER TRADE WITHOUT A FIXED PROTECTIVE STOP !

TAKING LITTLE PROFITS AND LETTING YOUR LOSSES RUN
A MAJOR MISTAKE FROM TRADERS IS TAKING SMALL PROFITS AND LETTING LOSSES RUN. RESULT FROM HAVING NO TRADE PLAN. AFTER ONE OR TWO LOSING TRADES, YOU ARE LIKELY TO TAKE SMALL PROFITS ON THE NEXT TRADE EVEN THOUGH THAT TRADE COULD TURNED INTO A LARGE WINNER.
RULE:: CUT LOSSES AND LET WINNER RUN !

AVERAGING UP/DOWN
AVERAGING A LOSS CAN BE DISASTROUS FOR YOUR ACCOUNT.
A TYPICAL APPROACH IS THAT AFTER YOU WENT LONG AND THE PRICE DROPS DOWN; YOU MIGHT FIGURE THAT IT WAS A GOOD BUY THEN, IT IS A BETTER NOW. YOU MAY JUSTIFY AVERAGING DOWN BY FIGURING YOU WILL HAVE A LOWER AVERAGE PRICE AND REQUIRE A SMALLER MOVE TO BREAK EVEN. UNFORTANLY, YOU WILL LOSE TWICE AS MUCH IF THE MARKET CONTINUES AGAINST YOU.
RULE:: NO AVERAGING UP AND DOWN !

OVERTRADING
TO MUCH OPEN TRADES WITH TO MUCH RISK IS A CLASSICAL EXAMPLE FROM OVERTRADING. OUR RULE IS TO HAVE ONLY 3 POSITIONS (MAX) OPEN AT ONE TIME. THIS GREATLY LIMITS ANY POSSIBLE OVER TRADING. OVERTRADING IS THE QUICKEST WAY TO BLOW UP YOUR ACCOUNT.
RULE:: NO OVERTRADING !

NOT HAVING PATIENCE
YOU TRADE TO MAKE MONEY, RIGHT ? YOU DONT GET MONEY TO ENTER AS MUCH TRADES AS POSSIBLE. CHOOSE THE BEST TRADING SETUPS AND WAIT PATIENT WHILE THEY COME UP. SOMETIMES ITS BETTER NOT TO TRADE THEN TO TRADE AND LOSING MONEY.
RULE:: BE PATIENT !

DISCIPLINE
THE GREATEST CAUSE OF LOSSES IS THE ABSENCE OF SELF DISCIPLINE.
TRADER NEED A LOT OF SELF DISCIPLINE !
THE BEST WAY TO TRAIN YOUR DISCIPLINE IS MAKE YOURSELF WATCH THE MARKET FOR A WHOLE WEEK WITHOUT DOING ONE TRADE. EVEN IF THE PERFECT TRADE COMES UP DONT DO ANYTHING. THIS WILL PROVE YOURSELF THAT YOU HAVE DISCIPLINE TO BE PATIENT AND NOT TO TRADE.
RULE:: BE DISCIPLINED!

Now, I want to tell you the one characteristic that causes most would-be traders to fail. It is the desire to be right!! Most of us equate a losing trade with being wrong, and our egos won't let us accept being wrong.

Instead of exiting a trade that is moving against us, we hold on in the hope that the trade will turn around and prove us “right.” Invariable the trade keeps moving against us and what would have been a small loss turns into a catastrophe.

We all do this. After 10 years, I still fight the urge to “hold on just a little bit longer.” Sometimes the urge wins out and I pay the price.

How many retirees saw their retirement accounts virtually disappear because they didn't want to “take a loss.” Understand this: When a trade goes against you, the loss is already there. You don't have the option of deciding to “take a loss.” The only option you have is admitting to the loss.

Real trading is not about being “right.” It is about being on the “right side of the market,” so you are positioned for the next moderate or big move.

The only way to make money trading Stocks, Commodities, Currencies, Futures, or Options is to sell whatever it is you bought for more than you paid for it. So, Let’s Stop the Insanity, stop looking for the Holy Grail, and see how easy it is to buy low and sell high with Narayani Day Trading System.

Here s a fact that you're going to have to get used to; You're going to lose trades. You have to accept that fact and understand that fact. Strangely enough, it is ego that makes so many losing traders. They are people who just cannot admit they are wrong, and stay with losing trades too long so they can prove that they were right. We all have some of that in us. If you're a competitor like I am, you hate losing. So be it, but this is not about ego.

The best hitter in baseball, Barry Bonds, gets a hit one third of time. That's enough to make him a champion. Tiger Woods doesn't make a hole-in-one every time he tees off. In fact he makes a lot of bad shots. What makes him a great player is that he puts his bad shots behind him and follows them with great shots.

I'm not going to give you any nonsense about “Love Your Losses” or anything like that. I will tell you that as a Narayani Day Trading System Trader, your gains will be bigger and more frequent than your losses, and you can take that to the bank.