Ten Tenets to Trade as a Successful Entrepreneur (Part 8) – Powerful Trading Strategies (Conclusion)

In the last couple of articles, we have discussed two powerful strategies which can provide you with a good capital appreciation when it used with discipline in the long term. In this article, we aim to talk about a few general characteristics of the market along with how you can use it to make more profits. Strategies, in general, work only when certain conditions are met. In a bull market, Sell Today Buy Tomorrow (STBT) strategies might not work and in a bull market, Buy Today Sell Tomorrow (BTST) strategies might not work…Read more »

Ten Tenets to Trade as a Successful Entrepreneur (Part 8) – Powerful Trading Strategies (Strategy 2 – Pivot Trading)

In our previous article, we elaborately went over how to use the Open High Low strategy to make consistent profits. Another strategy which gives good returns is the pivot trading strategy. Pivot points are mathematical levels plotted on a security’s graph to mark significant support and resistance levels. The underlying concept in this strategy that, when the stock’s price breaches any of the pivot levels, then it will continue to move in that direction. How are the Pivot levels calculated? Before we get into the details of how pivot levels are calculated, let’s…Read more »

Ten Tenets to Trade as a Successful Entrepreneur (Part 8) – Powerful Trading Strategies (Strategy 1- Open High Low)

In our previous article, we extensively covered the relationship between price and volume. You can combine that knowledge with a powerful trading strategy for a good capital appreciation. But please note that you still have to watch out for national and international economic and political events which could make the market more volatile and unpredictable. As part of the eighth tenet in this series, we will be covering several strategies which are back tested and beat the benchmark of your standard fixed deposit and savings bank returns. Some have even given better results…Read more »

Ten Tenets to Trade as a Successful Entrepreneur (Part 7) – Understanding Price and Volume

In our previous article, we covered the nuances of having a trading plan. Now that we have gotten into the stronger details of intraday trading, the first thing you need to understand is the relation between price and volume. A trader might have several indicators and screeners to work on his trading plan but the only driving force of a price is volume. If you understand how volume affects the price movement, you can consider yourself a professional trader who knows how to navigate between the ups and downs of the market. The…Read more »

Ten Tenets to Trade as a Successful Entrepreneur (Part 6) – Having a Trading Plan

With our previous article, we started getting into the important aspects of actual trading. After observing the market for decades, we can safely conclude that those who devise a trading plan and stick to it with discipline, have come out to be successful compared to those who go by their instincts. In our previous articles in the same series, we have extensively covered why it is important to have a trading plan. So, what do we mean by ‘trading plan’? And how can you devise one? A trading plan is a set of…Read more »

Ten Tenets to Trade as a Successful Entrepreneur (Part 5) – Listen to the Market

In our previous article, we highlighted the relationship between profitability and the number of winning trades. Now that we have covered the auxiliary knowledge required to become a successful trader, it is time to get into the details of actual trading itself. The first step towards that is understanding how and why you need to listen to the market instead of taking your own calls. Why should you Listen to the Market? The market functions in three modes - consolidation, uptrend and downtrend. The goal for you should be to capture these movements…Read more »

Ten Tenets to Trade as a Successful Entrepreneur (Part 4) – Generate More Light Than Heat

Our previous article outlined the winning psychology you need to adapt to become a successful trader. The next objective for you is to understand the difference between profitability and profit. Once you dive deep into trading, you will come across many “successful” call providers who claim that more than 90% of their calls are profitable! But how reliable can are they? Even if their claims are true, does it mean that you will make profits at the end of the month? In this article, we aim to demystify that and shed some light…Read more »

Ten Tenets to Trade as a Successful Entrepreneur (Part 3) – Winning Psychology

In our previous article, we extensively covered how you can guard your trading capital with a few techniques and methods. Going forward in the same series, the next thing an aspiring trader should master is a winning psychology. Performing technical and fundamental analysis about a company can be taught and absorbed with enough dedication and practice. But to adopt yourself to maintain psychological equilibrium during profits and losses (especially losses), takes much more than just reading about it. Going into a trade with a healthy psychology is integral if you want to make…Read more »

Ten Tenets to Trade as a Successful Entrepreneur (Part 2) – Guarding your Capital

In our previous article, we covered all the ways in which you can aquire or increase your trading capital. The next step towards becoming a full time trader is to understand how you can guard your money. Fundamentally, you should refine your strategy enough to limit its loss making days. Once that is covered, you might be tempted to go all out on your strategy and use up all your capital. We suggest that you refrain from doing that because a significant loss in capital can reduce your profit percentage for successful trades…Read more »

Ten Tenets to Trade as a Successful Entrepreneur (Part 1) – Adequate Capital

The first requirement to start trading is an adequate amount of capital. When you have realistic expectations from your strategy and the market, you can expect to make around 1-2% return on your capital every month. Some months, you might also need to brace yourself for negative returns or losses. Every year, you can expect your capital to grow by roughly 15% which beats the average interest benchmark for returns from your savings bank account or fixed deposit accounts. With these numbers in mind, the capital you require to make a living out…Read more »
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