TRADING WISDOM

Introduction: A Trading Plan is Like a Voyage Plan Imagine a captain setting sail without a voyage plan—no route mapped out, no contingency for rough weather, no understanding of the tides, and no estimation of the fuel required to reach the destination. Sounds reckless, right? Now, think of trading without a plan. Just like a […]

The Role of Trade Performance Analysis Successful trading extends beyond just having a strategy—it involves evaluating what works and refining what doesn’t. No professional athlete improves without reviewing past performances, and traders should adopt the same mindset. Without tracking performance, traders operate in uncertainty. Data-driven decision-making is essential for long-term success in financial markets. However, merely collecting

“The market doesn’t define you; your beliefs about the market do. Just as in life, it’s not the events themselves but what you believe about them that shapes your experience. Change your beliefs, and you’ll change your trading—and your life.” When it comes to trading, it’s easy to think that the biggest hurdles are external:

When it comes to trading, many beginners are drawn in by the idea that success is about predicting the market. They envision a system where you analyze charts, apply indicators, and confidently know where prices are headed. But in reality, markets are not predictable in that sense. Every trade carries an element of uncertainty, much

Trading the financial markets can feel much like sailing the open seas. On the surface, it’s an exciting adventure, full of opportunities for profit. But beneath that excitement lies risk and unpredictability. For sailors stepping into the world of trading, this journey can be thrilling but also filled with hidden dangers. In Mark Douglas’ book

As a sailor, you’ve likely faced your fair share of unpredictable weather. The wind doesn’t always blow in the direction you’d prefer, and the sea can be merciless. But what do you do when the winds change? You don’t panic. You adjust your sails. The same principle applies to trading. The market, like the sea,

Short-term trading involves making quick decisions and taking positions that are usually closed within a few days or even within the same day. This style of trading is very different from medium- and long-term trading because it requires close attention to market fluctuations, quick reflexes, and a deep understanding of market dynamics. In this chapter,

As a new trader, one of the key aspects of market analysis is understanding medium-term trends and how they interact with market brackets. These concepts will help you identify market movements and make better trading decisions. Let’s break this down with simple explanations and examples from the Nifty Index on the National Stock Exchange (NSE).

As a new trader, one of the key ideas you need to understand is how the market moves over the long term and how it pauses or consolidates in what we call “brackets.” These are crucial concepts for identifying market trends and timing your trades effectively. Let’s break this down, using examples from the Nifty