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Make your own FORMULA for trading

Wednesday, October 7, 2009 | Labels: , , | |

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Make your own FORMULA for trading.

Every investor and trader are wise. This is not comparison of trader and investor. I thought that both are wise. No one is wiser than other. Both are wise on their own place. We are start to fill own brain with lot of experience day by day. With passing day in market, we learn so many common thing. Those are common thing for market player, but not for outsider. Most of time if you are trader then you may criticized by family and friend. They are looking at us as gambler. They look at us trader as thirsty for grid. This is quite true,but not absolute . Think if trader like me and you are not trade, investor like you and me not invest, then think for economy of country. Think about jobs who feed thousand mouth. In India trader and investor is ever feel criticized by their nearby crowd.

This is not issue of our discussion and talking. My point is that you gain lot of experience as trader and part of society. Every one has its own brain. If you think little analytical way with those experience and use behaviour of other, we will make our own way to earn good money with little effort. I like to tell my one best friends experience here. How he makes his own way and enjoy? Now he able to make good money with his own ideas. You can also make your own way to earn money.

My friend Himanshu is trader. Initially for four to five years he acting like investor in market. Then he shifted to trading in cash market. He make lot of trade like shoot arrow with blindfold. Sometime he was in winning side or some time he was on losing side. Average he take loss in his trade. He start to study mind pattern of his own and try to assume other traders mind pattern. Then He make his own FORMULA for him. After lot of experiment he will able to found best of his formula which help him to win 60-80% time.

Let's just check his formula with his own assumption.

  • He first download BHAV COPY from www.bseindia.com
  • Then he make some calculation in spreadsheet. This calculation is that (High-Low) of every stock. he separate stock whose difference of “high-low” is more than 50
  • he then use those bunch of stock for its use, he again make one irrigation to adjust stock of his “reach”. He make separate out of from this stock whose value in 100Rs-300Rs.
  • On next day if stock is open high from last close then he “short” stock and wait for 12.5 point difference( he make divide 50 by 4), place order below to gain 12.5 or near value.
  • on next day if stock is goes down then he make “buy”, place order above 12.5 point to make sell and gain profit
  • He strictly use “stop-loss” for his position

  • This simple formula with his own experience helps him.

    Now it is your turn to make some good formula for your own. Use this formula, eliminate loop holes of your ideas. If not succeed first time again try for it. This simple trick and tips change your earning.

    Hope you like it. I also hope you will put your own formula here to help other trader too.

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