Questions That Can Change Your Life As A Trader + Performance of Our Calls during last Week.

September 20, 2013

Questions That Can Change Your Life As A Trader + Performance of Our Calls during last Week.

Greetings From Hitesh! Hope you had a nice week and may be getting ready for eventful weekend. Let me share some important questions, if you ask, it will change your life as a trader forever. Here they are….

v Does this trade fit my chosen trading style? Does this trade fit into my set parameters of trading, or is it just based on my own fear or greed?

v How big of a position do I want to trade? How much capital am I going to risk? Am I limiting my risk to 1% or 2% of my trading capital? Knowing where my stop will be how big should my position size be to limit my risk?

v What are the odds of my risk of ruin based on my capital at risk?

v Why am I entering the trade at particular level? What is the entry trigger to take the trade?

v How will I exit with a profit? A price target or trailing stop?

v At what price will I know that I was wrong? Where is my stop loss based on the position size?

v Will I be able to admit I was wrong and exit the trade if my stop is hit, or will my ego make me hold and hope? Can I trade this position size and keep my ego out of the trade?

v Is the risk small enough that I can emotionally handle the loss without blaming the market or myself? Is my risk small enough to keep my mind and trading plan in control?

v Can I really risk this money or do I need it for upcoming bills? Trade with risk capital not living expenses.

v Am I committed to staying disciplined and following my trading plan on the trade? Free-styling a trade that is losing is usually a formula for disaster.

I believe the answers to these questions will determine your success in any one trade more than anything else.

Performance of Our Recommendations For the Week 16^th Sep to 20^th Sep :-

	12th Week Performance :- 16th Sep to 20th Sep
Sr.No.	Company Name	Reco.Date	Recom.  Price	High Made After Our Call	Date on Which It Made This High	Absolute Profit in %
1	HDFC Bank	16/09/2013	631	689.9	19th Sep.	9.33
2	IDEA	16/09/2013	163	169	19th Sep.	3.68
3	CIPLA	16/09/2013	441	450.4	16th Sep.	2.13

We have also made tons of money in 6000 call bought on 18^th Sep at Rs.56….it became Rs.181 next day. On 20^th we bought 6100 put at Rs.60 which touched Rs.164 in just 20 minutes and at 11.46am on 20^th we gave a call to buy 6000 call again at Rs.56….which became Rs.90 in just 30 minutes.

Most Important Questions on the Market:-

Since 29^th August, Nifty has moved up by 1000 points and BSE Sensex has moved up by around 3500 points. Where is the fundamental change in last 20 days? What happened to the NPAs of the Bank? What happened to the Inflation? What happened to CAD? What happened to GDP Growth? What happened to Corporate Profitability?

Just perception has changed…..if you are also ready to change your perception about the market…..the market will help you make tons of money.

Make your choice.

Have a Happy Weekend.

Hitesh Parikh.