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Sunk Cost Fallacy in Stock Market

Managing our emotions is hard especially when it comes to money. And sometimes, the possibility of a big loss makes us behave irrationally.

Zero Loss Guarantee Strategy

Zero Loss Guarantee Strategy At least once a week, I get asked that if I teach some kind of a "zero loss strategy".  It's a very innocent question and I completely empathize with those who ask it. However, my situation is that of a gym instructor [...]

Can I Buy from BSE & Sell at NSE ?

Can I Buy from BSE and Sell at NSE ? This question is asked a lot and I am surprised how few traders really understand how this works. In this article, we will answer the question whether one can buy shares from one stock exchange [...]

Difference Between Liquid & Illiquid Stocks

Difference Between Liquid & Illiquid Stocks Before understanding the difference between liquid and illiquid stocks, we should first understand the concept of liquidity. What is liquidity in stocks? Liquidity is simply an assessment of how easily stocks of a company can be bought and sold. [...]

5 Signs That You’re Maturing As a Day Trader

5 Signs That You're Maturing As a Day Trader #1 You don't get all excited at the market open Gone are the days when you couldn't wait for the weekend to be over and the market to open. Your heart doesn't beat faster when the [...]

3 Reasons Why Trading on Tips is a Bad Idea

3 Reasons Why Trading on Tips is a Bad Idea Tipsters are everywhere now a days. There is no shortage of these "nice people" who really want to help you. In fact, you don't even have to go hunting for them; they will call you, [...]

Day Trading with Smart Phone is Not Smart

Day Trading with Smart Phones is Not Smart Call me old fashioned (or just old) but every time I see a day trader trading on his phone, my blood pressure goes up a notch.  In this day in age, everybody has a phone and placing buy [...]

Are you ready for Futures Trading?

A new student of mine (very bright and young) pinged me today  in the Chat Room with a great news that he made over ₹16,000 in Tata Steel trade. I was, of course, very happy for him and then we moved back to trading. Later, it struck [...]

Your Beliefs About Trading

You do not trade the markets—no one does.  Now that might sound surprising to many of you.  But what you really trade are your beliefs about the market.  Furthermore, your ability to do so is tempered by your beliefs about yourself. I’d like you to write down your beliefs [...]

What is Involved in Peak Performance Trading?

There is so much involved in developing peak performance, that I recommend that all traders have a business plan. We recommend that the business plan cover all of the following areas. Your vision. Your purpose. Your objectives. A thorough self-assessment of your strengths and weakness, based [...]

Stop Worrying Yourself Out of Profits

Every time Michael thought about entering the market he said to himself "But what if I lose?" Those thoughts often paralyzed him from action or delayed his entry so long that many opportunities simply passed before he would pick up the phone. When Michael did open [...]

Make an Honest Self-Appraisal

Think about the last loss you had in your trading.  What caused it?  Who was responsible for it?   If your response was anything other than yourself (e.g., the market, my broker, bad advice, etc.), then you are not taking responsibility for your results.  And the consequences of not taking [...]

Difference between Amateur Traders & Systematic Traders

Trading News vs. Trading System Amateur Traders try to trade news while Systematic Traders trade price. While Amateur traders are busy trying to figure out what the latest news on TV really mean, Systematic traders are taking the signals from price behavior in the market. Systematic [...]

7 Trading Advises for Young Traders

We get a lot of young traders who are eager to earn money from the stock market so this post is for them. Here are a few things I typically advise youngsters before taking the plunge in the market: 1: Don’t rush to trade Take your [...]

Are you afraid of shorting?

A friend asked me a few months back about the concept of Shorting (i.e. Selling first and Buying later). He was curious as to how that works and amused when he learned how easily it can be done in Indian markets (as compared to US where he [...]

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