USDINR Mid and long term View

USDINR
Trend: Bullish
Target: 68-74
Stoploss: 58 (60 for low risk traders)
CMP: 61.60
Time: 6-18 months

BHEL Mid Term View

BHEL made a triangle pattern. Keep close eye on 214 and 235 level.These levels will work as trend decider in coming days. Any closing below 214 may lead this stock in to bearish. However there is a uptrending trend line support around 190. If stock is not able to hold that than it may witness 130-90 levels in mid term. and any closing above 235 will make stock in bull trend and may see 280-310 levels in coming days

Nifty View for week starting at 19 Nov 2012

Last week nifty made high of 5719 and low 5560. this movement shows 5620 is nearest resistance for NSE nifty. sustaining below this bears will have upper hand on market . Nearest support for Nifty 5548 below this 5460 is next target.
Key levels for the week are as follows

5940-5782-5623-5511-5460-5300


Disclaimer apply

HOW TRADERS FAILS??????

1. Lack of motivation. A talent is irrelevant if a person is not motivated to use it. Motivation may be external (for example, social approval) or internal (satisfaction from a job well-done, for instance). External sources tend to be transient, while internal sources tend to produce more consistent performance.

2. Lack of impulse control. Habitual impulsiveness gets in the way of optimal performance. Some people do not bring their full intellectual resources to bear on a problem but go with the first solution that pops into their heads.

3. Lack of perseverance and perseveration. Some people give up too easily, while others are unable to stop even when the quest will clearly be fruitless.

4. Using the wrong abilities. People may not be using the right abilities for the tasks in which they are engaged.

5. Inability to translate thought into action. Some people seem buried in thought. They have good ideas but rarely seem able to do anything about them.

6. Lack of product orientation. Some people seem more concerned about the process than the result of activity.

7. Inability to complete tasks. For some people nothing ever draws to a close. Perhaps it’s fear of what they would do next or fear of becoming hopelessly enmeshed in detail.

8. Failure to initiate. Still others are unwilling or unable to initiate a project. It may be indecision or fear of commitment.

9. Fear of failure. People may not reach peak performance because they avoid the really important challenges in life.

10. Procrastination. Some people are unable to act without pressure. They may also look for little things to do in order to put off the big ones.

11. Misattribution of blame. Some people always blame themselves for even the slightest mishap. Some always blame others.

12. Excessive self-pity. Some people spend more time feeling sorry for themselves than expending the effort necessary to overcome the problem.

13. Excessive dependency. Some people expect others to do for them what they ought to be doing themselves.

14. Wallowing in personal difficulties. Some people let their personal difficulties interfere grossly with their work. During the course of life, one can expect some real joys and some real sorrows. Maintaining a proper perspective is often difficult.

15. Distractibility and lack of concentration. Even some very intelligent people have very short attention spans.

16. Spreading oneself too thin or too thick. Undertaking too many activities may result in none being completed on time. Undertaking too few can also result in missed opportunities and reduced levels of accomplishment.

17. Inability to delay gratification. Some people reward themselves and are rewarded by others for finishing small tasks, while avoiding bigger tasks that would earn them larger rewards.

18. Inability to see the forest for the trees. Some people become obsessed with details and are either unwilling or unable to see or deal with the larger picture in the projects they undertake.

19. Lack of balance between critical, analytical thinking and creative, synthetic thinking. It is important for people to learn what kind of thinking is expected of them in each situation.

20. Too little or too much self-confidence. Lack of self-confidence can gnaw away at a person’s ability to get things done and become a self-fulfilling prophecy. Conversely, individuals with too much self-confidence may not know when to admit they are wrong or in need of self-improvement.

WHY TRADERS LOSSE MONEY

When a new player enters in market in his first few trades he makes good profit and after that he starts losing loosing and losing and finally quits from market. Today here we will tell you why it is so?

• When a new player enters in market he has less knowledge so he follows views given by his friends and broker.
• He initially use small amount of money loosing which will not affect his life style and he also satisfied with whatever he gets thus avoiding greed factor. Greed and fear factor is the biggest reason for people to lose money.
• After few successful trades he introduces more money to market even beyond his capacity and when stop loss for trades done using this money triggers than he starts fearing. We suggest all trades to use only limited money within his capacity and use only such amount of money loosing which will not affect his life style u can’t avoid risk factor associated with market.
• People followed tips given by their broker and we all know brokers only works for their brokerage so when u ask idea about market they gave their own idea about market so that you may trade and they get their brokerage.
• When people start trading before opening market they develop their own strategies about trades for the day but when market opens they forget their strategies and start trading randomly. Doing this is very dangerous in market.
• When stop loss are getting hit, traders stop using stop loss and now they have unlimited risk and limited gain.
• To avoid such kind of scenarios use your own analysis, use stop loss order and trade with define risk. When this situation comes traders end up with loss and finally quits from market
  

your suggestion and comments are always welcome. add your comments and suggestion and if we find it valid than we will add in our post too.

SETTING REALISTIC GOALS

Setting realistic goal in market is very important. Only realistic goals can be achieved. I remember when I was new in market and I had invested my full 1^st salary, that was around Rs. 10000 and I made Rs. 2000 in just 3 days. After that I thought I made Rs 2000 in just 3 days in this way I can make Rs. 20000 per month that is more than my current salary. By thinking this I became so unrealistic and soon lost all my profit and my investment amount too. Than I talk to some market experts and soon realize my mistakes. Than I again started my trading with the determination not to repeat same mistake again. As per expert 30% return per year from your investment is good in market and that can be earned easily. Here is an illustration if you invest Rs 10000 and get 30% return per year at Your investment than you can Increase Your money 150 times in just 20 years.

YEAR	AMOUNT	RETURN 30%
1st YEAR	10000	3000
2nd YEAR	13000	3900
3rd YEAR	16900	5070
4th YEAR	21970	6591
5th YEAR	28561	8568
6th YEAR	37129	11139
7th YEAR	48268	14480
8th YEAR	62749	18825
9th YEAR	81573	24472
10th YEAR	106045	31813
11th YEAR	137858	41358
12th YEAR	179216	53765
13th YEAR	232981	69894
14th YEAR	302875	90863
15th YEAR	393738	118121
16th YEAR	511859	153558
17th YEAR	665417	199625
18th YEAR	865042	259512
19th YEAR	1124554	337366
20th YEAR	1461920	438576

DEVELOPING TRADER PSYCHOLOGY

Trading has nothing to do with indicators and everything to do with you.The easiest thing to do in market to learn Technical Analysis. However, they have nothing to do with trading. Many times You have to try Anti-technical. technical Indicators You can memorize or buy from market . But all the results depends on You.

you can learn a perfectly good trading system, trade it, and lose money. someone else trading the very same system makes a fortune.

Once your trading system hit stoploss you start thinking....

• Is the system really effective any more?
• Have the market conditions changed so this system no longer works?
• Do I need a new system?

and many such questions start arising in Your mind...

So here are few things you can do to help you manage your trades better:

Don't look at daily profits. Look at them over time. Who cares if you lose Rs. 1000 today? You could make Rs. 2000 tomorrow! That's still Rs. 500 a day over 2 days. So always analyze your profit loss over a definite time period


Plan for losses. For a good trader losses is not permanent. They will come, but know they're only temporary. If u lost today You can gain tomorrow.

Plan your trades and trade your plan. This is the most important part of trading. If you start the day with a plan, but don't follow it, than No meaning of your plan and you may end-up with losses without proper plan

A good trading system gives you 7 winning trade out of 10 trades....

HOW TO DECIDE TRADING QUANTITY.

This is the most frequently asked question by all day traders as you cannot move original Stop-loss level to any other levels. Than its become very difficult to decide in how much quantity you should trade. Normally 2-3% risk of your trading capital treat as good trading risk.

Lets take a case that your trading capital is Rs. 50000. as per 2% calculation you should take only Rs. 1000 risk per trade. Now question comes that how much quantity should I trade so that if stop-loss triggers than I must loose only 1000 Rs per trade. Infect Your trading quantity depends on your risk ability. Means your risk ability will decide in how much quantity you should trade. For Example you got tips to buy SBI at 2000 with stop loss of 1950. And your risk ability is Rs. 1000 per call. Than how much quantity u should buy of SBI??? Confused????

Quantity=Risk Ability/(buy price- stoploss price)
=1000/(2000-1950)
=20
That means should purchase 20 shares of SBI so that if sl trigger than you will loose only Rs 1000 as you had decided earlier.

Let’s take another example of unitech. For example you got a call to buy unitech at 70 Rs with stop loss of 68.50 and your risk ability is Rs 1000, than how much quantity you should buy unitech. Just calculate like this-

=1000(70-68.50)
=666.66
~666
Means you should buy only 666 shares of unitech. In any case if stoploss trigger in unitech than you will loose only 1000 Rs