Oct 012008
 

Its been a long hard road that I have travelled. Many lessons have been learnt, not by paper trading, but by losing real money. I have read dozens of books, and experimented with several methods. One thing is certain. You never cease to learn while dealing with the markets. Somewhere along the road, the fog lifted, and it became clear what needed to be done to succeed. Here is a brief summary of my philosophy.

1. Don’t try to get rich quick.

2. It is impossible to predict the future, but you can assign probabilities to your assessment of the likely turn of events. When you spot a low-risk trade, be sure to take it. Missing a trade after you have spotted it is bad trading.

3. Don’t be surprised by a loss, but be sure to limit it to your pre-determined stop (unless the market gaps, in which case you have to salvage it as best as you could).

4. Give your trade a chance to develop. I have known the emotion where one can’t wait to put on a trade, and the moment it is on, he/she can’t wait to get the hell out of it!

5. Don’t confuse activity with good trading. It is not necessary to be trading every day.

6. Trade with the trend.

7. Wait for the best opportunity for success to present itself, and when it shows up, be sure to act.

8. Choose a position size that will enable you to survive a series of losses without throwing in the towel too soon.

9. Your past trades have absolutely no bearing on how the current trade will work out. So it is best to completely forget the past.

10. Thank heavens you don’t have to trade to put bread on the table. Else it will be too stressful.

(You will find additional information about me here)

  2 Responses to “My Trading Philosophy”

  1. Respected Ramki sir , i m interested in learning Elliot Wave Theory.
    i stay in India MUMBAI.Can u please suggest me some very reliable books for serious reading or if u can conduct online classes then it will be an excellent idea for learner like me.I have talked to many Technical Anlyst but no one can teach this complicated,yet wonderful theory.I m looking upto you with great expectations about learning this theory.Hope to hear something positive from your goodself.
    Thanks,
    MR.PREM

  2. Hello Mr Prem, I am assuming you know the basic Dow theory, and classical analysis. Once you have a basic understanding of that (Edwards & MaGee is a good book), you can start with Elliot Wave Principle by Robert Prechter Jr.
    As I am a full-time Treasury Manager, I am not conducting any online classes, but if I conduct any short seminars in Mumbai, I will announce that in Wave Times. Good luck.

 Leave a Reply

(required)

(required)