January 29, 2008

Learn from others mistakes

Survive first and then make money

Supports and resistances are just to make bulls and bears hope as eventually they always break.

There is no evidence based proof that technical analysis or weird wave theories work.so dont trust these things too much.

If u trade in futures or use leverage and dont have any methods to control risk(stoplosses,position sizing etc)u r bound to lose sooner or later.

Dont get overexcited and too happy on profits until they r in ur trading account.and dont get too depressed due to a loss until u have enough left to recover that money.

Market is unpredictable.but still money can be made here by controlling risk and by discipline.

If u want to invest buy the whole market or the full index nifty.i dont believe buy nd hold can be easily outperformed.

Charts tells you about past behaviour of markets and it is not necessary that future would be related to that.

If u use margin and leverage then use hedging or dont keep them ur positions overnights.
majority will always lose in futures market.

Author (Kamal) is xellent day trader

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