ACTING IN YOUR OWN BEST INTEREST IN TRADING - Bramesh's Technical Analysis (2024)


It is the most important concept you can learn in order to be a successful trader. If you can master this skill, you can be very successful in this business. But without it, you are destined to fail. It really is that simple. If you can learn to act in your own best interest, you will make a lot of money trading. If you don’t learn to act in your own best interest, you will lose a lot of money trading.

You see, the (futures) markets work in a very different way than almost everything else in life. There is more freedom in this business than probably any other business in the world. You can do what you want, when you want, pretty much any time the market is open. The only thing that will hold you back is running out of money. Other than that, you have all the freedom in the world to do whatever you want in the market.

Trading really is different from everything else we do in life. In the everyday environment, you can have control (at least somewhat) by taking actions that affect the
environment. For example, if you wanted to listen to some music, you would have to turn on YOUTUBE. If you go to Youtube and search your fav song and play, music will come. If you don’t music will not turn on.

Another example would be if you wanted to start your car. If you put the key in the ignition and turn it, the car will most likely start because you did something to affect that change. If you don’t turn the key, the car will not start. You must change the environment (by turning the key) to get the car to start.

Everyday we all do things to affect changes on the environment. We put our bankcard in the money machine to get cash out. We push the button on the coffee maker to make coffee come out in the morning. These are all changes that we can consciously make happen.

But here’s the difference:

In trading, you can’t control what the market will do. No matter how much you want the market to go in a certain direction, there is nothing you can do to make it go in that direction. There is no affect that you can cause on the market to make it do what you want it to do. We can’t push a button, we can’t turn a key, nothing we do will make the market do what we want it to. Nothing at all!

So, if we can’t control the market and what it will do, then the only thing that will make us successful is if we can control ourselves. And that’s easier said than done. But it is the reality of successful trading. Again, you can’t control what the market will do, so you must control what you will do.

I’ve met thousands of traders and, unfortunately, many of them fail at trading. Most never learn the proper skills they need to be successful. Most of them focus so hard on finding the perfect technical method or mechanical system, and very few people realize that is much less than half the battle.

A person with good self-discipline but a poor trading method will outperform a person with poor self-discipline but the best trading method currently available.

I talk to people who’ve had very large profits in certain trades. For example, I remember a time when a traders called me and told me he had 800 points in a three lot
trade in the NIFTY FUTURE, But even with that big profit, this particular trader still lost money on the trade. When I asked why he didn’t trail his protective stop order to lock in some profit, he told me he was looking for the big home run. Right then I knew this person didn’t have his best interest in mind.

Sure, we all want those huge winning trades. But one thing we must all remember is we can’t control what the market will do, so we must be prepared for whatever it does do. Thus, a person who gets 800 points in an NIFTY FUTURE trade (not an easy thing to do) must have his best interest in mind and not allow all of that profit to evaporate, even if that means missing out on the big winner.

As Today is Trading Holiday Reflect on your Trades see if you are ACTING IN YOUR OWN BEST INTEREST IN TRADING.


ACTING IN YOUR OWN BEST INTEREST IN TRADING - Bramesh's Technical Analysis (2024)


What made you interested in trading? ›

So, why do people want to trade? There can be many reasons, but the two most common ones are to make money or because they find it exciting. Whatever the reason, those who want to become traders must undergo an interview process to succeed.

How do successful traders think? ›

One of the most important psychological characteristics of winning traders is the ability to accept (1) risk and (2) the fact that you may well be wrong more often than you are right in initiating trades. Winning traders understand that trade management is actually a more important skill than market analysis.

How do you answer why are you interested in investing? ›

Most websites, books, and other resources recommend generic answers:
  1. You want to learn a lot.
  2. You're interested in corporate finance.
  3. You like a fast-paced environment.
  4. You've always done well in finance/accounting classes.
  5. You want to work with smart and motivated people.

What should I say in a trading interview? ›

Likewise, if you're interested in trading you can say that you're fascinated with how traders position their books in anticipation of client demand, how they think about relative risks, and how they balance serving clients while at the same time ensuring they protect themselves (maybe the reason why a client wants to ...

What is the 3 5 7 rule in trading? ›

The 3–5–7 rule in trading is a risk management principle that suggests allocating a certain percentage of your trading capital to different trades based on their risk levels. Here's how it typically works: 3% Rule: This suggests risking no more than 3% of your trading capital on any single trade.

What are the golden rules of trading? ›

Let profits run and cut losses short Stop losses should never be moved away from the market. Be disciplined with yourself, when your stop loss level is touched, get out. If a trade is proving profitable, don't be afraid to track the market.

What is the secret to successful trading? ›

Successful traders focus on risk management first and foremost. Risk management involves limiting your losses and protecting your trading capital. One common rule of thumb is to never risk more than 2% of your trading account on any single trade.

Why do you want to learn trading? ›

Diversification: Trading stocks can help diversify an investment portfolio and reduce overall risk. Control over investment: You can make decisions based on your personal goals and risk tolerance. Active participation: Trading stocks can help you to stay informed and learn about market trends and financial information.

Why do you love being a trader? ›

Financial Freedom

Being a successful trader means you can (1) make a lot of money, (2) be free to invest that money in any way you see fit, and (3) do what you want without having to get approval from someone higher up. That is real financial (and personal) freedom and traders have it good.

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