Trading Room Disipline

Discipline in trading is more essential than any other business one may do.

A person who are there in the shop or doing business may need not to have this much diligence as we need in trading.here money and time is directly proportioal.Some time once you miss the oppurtunity you may not get it back the same ever.Here time is money.You have to act fast and that needs higher disipline.

I have observed many things that hurdle/interferes an individual trader and point out the same here for my clients/readers.

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1.Have Pre-plan

• Have pre-plan or mind mapping before entering into the day trade.One can even apply the same for each of his/her trades.
• In advance forsee both the possibilities of Up's/Down's,So that ,when the market open up in> Bear/Bull mode you can very well handle and tackle the situation well and make out fast trading decision.
• "You have to expect the unexpected".

2.The Trading Room/Hall Discipline

• When you enter into the trading room you just maintain pin-drop silence and encourage the other co-traders to follow the same.Avoid talking to anyone when you are there in the trading room.There are some useless 'chatter-box'.chat junks about everthing or moves of the market without knowing the base of the market. Just ignore also make a pull stop for further conversation with them.


• There are many traders (So called) come to trading for fun shake or time pass they may not trade or does less trade ( would have lost money in the past and still stick to market without plan and free to adise others). These people are dangerous just avoid them.They may induce you into the wrong side.


• There are many people in the trading hall > will over-react for everything...like, every 5 points drop/up they exploit/shake others by shouting market is bearish/bullish...blood bath etc. and make a trading hall a whole-mess .The positional holder will face nuisance by them. They may not even having a single holdings in their a/c, but they simply come and go.Be aware about this type of people.if possible, throw them out or you stay away from them and trade in your own home/office.


• All your trades do it on your own willingness.Do not follow other traders/rumors by the brokers /media etc.


• When ever, you are carring positional shorts/longs in future do not disclose or discuss with others they may capable of corrupting your mind and make you to book loss saying you are against the trend.The moment when you book loss/curtail profits the market will jumps.(You may murmur latter on,if i would have hold,i would have made huge profits)So, you decide every buy or sell and just follow your own plan and do trading accordingly.


• Be secretive in all your trades and never mind what other does.Be a conservative trader.We are here for business not nessary to share with every one what we does.


• Stay away from the market fellow as much as you can.The more market friends you have the more confused you are.Do not loose your clarity by just mingling with other market friends.


• Avoid reading so many useless websites...There are few sites out there to spread only rumours.Just stay away.follow only the quality sites. Let your mind be an empty slate and be pro-active& spontaneous in your trading.
  

3.Avoid Phone Conversation

While you are involved in your trading....

• just avoid all phone calls


• Tell your family & friends> 'Not to call you' during trading hours.(Expect to important calls)


• Trading needs lots of observation and timley decision making...So you also stop calling some body during your trading hours.


• The trading needs higher disipline than any other business...A diligent observation pays you well.


• Be punctual and avoid absence..your presence only makes things better.Non-other can do on your behalf.

Have your trading note book and pen write down all your trades...it is easy to calculate pivotal, net avereage etc.You will not forget your positions and the P&L .what rate you have bought & sold and the net positions on hand.

Do not feel shame to carry a note book like a school going children...We , as a traders has to learn things every now and then.This learning never ends.The wisdom pays you a great rewards sooner or latter.