ATMASphere Aug 2014

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Rajat Dutta is a system designer and a fund manager for Moneyrizing Wealth Management Company. He is a trader since 1970. His specialty is trading micro trends with a focus on analyzing and trading Stocks, Option and commodities. He can be reached at rajat@moneyrizing.com AUGUST <strong>2014</strong> ATMASPHERE | 12
10 Things that will improve your trading results quickly The simple truth is that 90% of traders over the long term never breakthrough to profitability. There are many reasons that keep new traders unprofitable permanently. They make the mistakes of the mind: letting their fear affect their ability to let a winning trade run, they let their greed take over proper position sizing, and their ego stops them from cutting a losing trade short and keep it small after they have been proven wrong by price action. Also even you develop a winning trading system it must be traded with discipline and focus or it will not work. Many new traders never really understand that the money management system they are using to trade their method dooms them to failure regardless of winning percentage or the size of their wins if their position sizing is too big. If a trading method is not traded with the right position size then the first losing streak will be their last. Many new traders are disappointed and even quit when a trading environment suddenly changes. Markets change from volatile to tight price ranges, from defined support and resistance to breaking out to new all time highs and trending, from Bull Markets to Bear Markets. What works in some markets does not work in all market environments and multiple trading systems are needed. New traders do not make it in the markets because they are unable to put all the pieces together. They have to develop and trade a methodology that fits their own personality and works in multiple market environments. Once they have the system it must be traded with discipline and focus. That motivation to trade must come from the desire to make money not the urge to be right or prove anything. Trading is a business like any other and when the new trader stops treating it like a hobby, doing it for entertainment, or for the emotional rush they can start making progress. You can be a profitable trader if you are willing to do the work. Here are ten insights that could help direct new traders in the right direction. 1. The best money managers in the world return 15%-20% gains on capital consistently. Targeting large annual capital gains of over 20% only comes with greater risk exposure. The greater you reach for big returns the greater the danger of a large drawdown. The best way to avoid the risk of ruin is to stop trying to get rich quick, and begin to develop a method that will produce consistent returns. 2. A trader must develop a plan for entries that give a good risk/reward ratio. The stop placement must have a have a good probability of success based on historical price action. The trader must also have the ability to take decisive and immediate action when their buy or sell signal is hit. It is not enough to have a trading plan it must be followed with discipline. 3. Trading is not about quantity of trades it is about the quality of the trading signals. Focus on taking only the best signals and begin to eliminate the lower quality ideas. Profitability is about quality not the quantity of trades. 4. Good traders make decisions based on facts, probabilities, statistics, and with logic and reason. Emotions, greed, and ego have no place in entries and exits, just the facts. AUGUST <strong>2014</strong> ATMASPHERE | 13
Page 2 and 3: CONTENTS Letter from the President
Page 4 and 5: EDITOR’S NOTE In this issue - 1.
Page 6 and 7: 2. Symmetrical Triangles: These are
Page 8 and 9: 5 Price action tips that will make
Page 10 and 11: Tip # 3. Look for wide range candle
Page 14 and 15: 5. High quality trades, many times,
Page 16 and 17: method that we will follow. Now why
Page 18 and 19: Understanding Market Profile Introd
Page 20 and 21: Hi, I often go with nick name Pit T
Page 22 and 23: Within an average period of less th
Page 24 and 25: World's FIRST E-Library of Technica
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ATMASphere Aug 2014

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