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THE

11
RULES LIVELONG
TRADERS FOLLOW TO
GET AN EDGE IN THE
STOCK MARKETS
1
UNDERSTANDING THE
RISK

There is no single trade that we


personally take without
determining the point where our
view goes wrong. This helps in
keeping away emotions since we
have already planned the stop loss
before hand itself or considered a
hedging methodology
2
UNDERSTANDING THE
DYNAMIC NATURE OF
MARKET

In the stock market nothing is predictable with


100 % accuracy & hence we double down on
things that are in our direct control. ie,
Position sizing and checking for oppurtunities
when the potential reward is 2X the risk or
better.it is only through proper analysis and
practise we are going to get results and
watching 100's of strategies is not going to
give that . Each & every setup should be tested
personally & only once confident,we enter it
with small position size . then gradually
overtime with confidence we scale
3
IMPORTANCE OF
PRICE ACTION

we realise price action is a method that helps


us define probable reward & risk much more
efficiently than any other indicator and hence
we stick and focus on understanding
price,volume and together with open interest
4
RISK - REWARD
THE SAVIOUR

we realise that focusing on systems with even


50% accuracy & 1:2 risk/reward ratio will help
us stay on the green side for the long term
rather than any other system of 1:1 for short
term and we will further facing trouble in
adapting to it.
5
CAPITAL PROTECTION &
DRAWDOWN

Statistics show that any good trading system


can have a continuous losing streak of 10 &
hence we realise it we keep risking amounts
greater than 20%. it could actual bring in a
significant drawdown to our portfolio
someone who is starting off,should never risk
more than 1% per trade , else it could affect
the trader emotionally as well.
6
 
JACK OF ALL TRADES
,MASTER OF NONE

it is absolutely fine to concentrate on your


most comfortable segment and master it.
stocks are like your friends , the more you
spend with them,the more you get to know
each other. it is absolutely fine in trying out
various segments , but ultimately focus on
what suits our personality .The best & stick to
it unless we are no longer comfortable in it.
7
LIVELONG  WEALTH
COMMUNITY

Human beings are tend to make mistake,


hence we ensure that we journal down our
trades and share with our community about
the wins and losses.this will help us review our
trades later as well as identify & learn from
other mistakes & wins as well.

YOU ARE A
CHAMPION

in the stock markets each individual has a


different trading style . we should never ever
compare ourselves to someone else & their
profits.always focus on your trading system &
work on improvising it to make it better .never
ever be distracted by the big profits made by
other fellow traders. " never compare your
day one to that of another persons day 1000"

TODAY IS NOT THE
LAST TRADING DAY

many beginners commit the sin of over


trading on the same stocks to recover from
losses even when there is no opportunity.
"i am scared of the person who has practise
one kick 100 times than the person who has
triesd out 100 kicks 1 time " Trade only based
on your system & never ever based on your
emotions.make sure that you dont take losses
personally . study it & work on it to improve
yourself.revenge & over trading is a sin
10 
START SMALL
DREAM BIG

people have this misconception that you should get


started in the stock markets only once you have a
huge capital. it is just like thinking becoming sachin
tendulkar to start playing cricket.always get started
with a small capital 2000 -3000 rs & figure out for
yourself how your analysis working out in real time
markets.only after gaining confidence with the system,
think about scaling your positions.never think about
doubling or tripling your capital just because you got a
continuous 3 day streak . at max increase your
position size by 25% at a time. else emotions will
actually trouble you in taking the best decesions.
11 
TRADING IS A
BUSINESS

just like you have spend 4 years for your


engineering or the 2 years you have
spend to stabilise your business cash
flow getting into full time trading will
take atleast 1 - 2 years of dedication and
practise and it depends on your efforts.
LIVELONG WEALTH

LEARN TRADING FROM ABSOLUTE BASICS


TO ADVANCED STRATEGIES

C
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