11 KEYS

11 KEYS TO SURE SHOT SUCCESS IN FINANCIAL MARKET

Key 1: Know the basics of your market

Stock market, commodity market, forex market, bond market etc
Nature of each market, volumes, volatility, formalities etc, time duration of market open and close

Key 2: Rectify your wrong thinking pattern

Most mistakes are made due to wrong thinking pattern. Unless you rectify this, no amount of technical knowledge can help you

Key 3: Keep informed & be independent when it comes to what to do with your money

Be open to receive all information & keep informed about the market by monitoring the news, but when it comes to making a decision, rely on your technical skills and no one else.

Key 4: If you do not have time for that, take advice and service of experts only

Those who do not have the time and will to learn about the markets or technical analysis should take advice from established experts with proven track records. Do not entertain advice from a layman.

Key 5: Gain knowledge of technical analysis

Why? Can a long term investor do without it? Its benefit’s
Used for short term timing as well as long term timing to gain more out of a stock rather than holding forever. Stock should keep in portfolio but better return can be derived with churning

Key 6: Be an expert at Risk management

Importance of diversifying to reduce risk
Importance of stop loss and how to implement it to cut losses at minimum
Importance of avoiding average down strategy and why?
Importance of trailing stop and how to implement it to get maximum profit home
Following a system that ensures that once in profit, you never come into a loss

Key 7: Above all: KEEP IT SIMPLE

Learn to build a system and follow it
Follow the setups, and depending on the time horizon you are trading, look at the overall picture and avoid all other noise
Device and strictly adhere to your strategy do not make it unnecessarily complex
Use limited indicators

Key 8: Decide your goals & act accordingly

What type of work you want to do in market?
Do you have the time and money to do it?
Should you do it if you do not have time & money for it?
What are your short term and long term financial goals
How to fulfill them with help of various financial instruments
Your goals:

Goal 1: To earn daily income
Options available: Intraday trading

Return possible: Depends on funds allocated. But a trade giving return of around 1 percent of more
Required setups:
Time: Who can do this and who can’t as per time limitations
Money:
Tools: Intraday charting software
Discipline:

Goal 2: Earn Short term income

Options available: If time allows, Intraday trading, or Swing trading only
Return expected: 5 to 10 percent monthly
Required setups:
Time: Who can do this and who can’t as per time limitations
Money:
Tools: Intraday charting software
Discipline:

Goal 3: Get medium term return

Options available:
Medium term investment that is 3 to 6 months
Return expected: 25 percent or more
Required setups:
Time: Who can do this and who can’t as per time limitations
Money:
Tools: EOD charting software sufficient
Discipline:

Goal 4: Generate long term capital gain

Options available:
Long term investments with holding horizon of more than 2 years if required
Return expected: with right stock pick sky is the limit
Required setups:

Time: Who can do this and who can’t as per time limitations

Money: Financial capacity & Holding capacity must be analysed first
Tools: EOD charting software
Discipline:
What people do in reality & result?

Scenario 1: You have a full time job or business and you go for intraday trading
o Your goal & what you get
o Who should do it and who should avoid it

Scenario 2: You have a full time business or a job and you invest in the short term without knowledge of technical analysis
o Your goal & what you get
o Who should do it and who should avoid it

Scenario 3: You have a full time business or a job and you are a long term investor
o Your goal & what you get
o Who should do it and who should avoid it

Scenario 4: You are a full time trader
o Your goal & what you get
o How you can do this & who should do it and who should avoid it

Key 9: Building a progressive portfolio

Building a long term portfolio and what it can do for you.
How to do it
Its key elements
Treating a portfolio as a person
What bad stocks do to your portfolio
Having the courage to take a loss
Having the skills to take most profit home

Key 10: Building a portfolio of blue chips to earn long term dividends & bonuses

Key 11: Remembering the commandments and follow them religiously

What are the commandments
Never trade based on assumptions: Confirmation is the key to success…….
What to do to remember them
Importance of discipline: Discipline is the key to success in stock market: