Oh; You're a disciplined trader?

the following discipline needs to be followed.

a) inevst and do not speculate.

b)do not do naked trading.that is short of funds or short of shares.i.e going long without funds in hand,and going shot without shares in hand.

c)do not buy in a falling market.

d)refer to the charts and historical price pattern of the share.

e) follow and act on the major news in the company.like losess unexpected,fall in sales,fall in the sales of the sector,out dated product.change in management.

f)do not just keep on analysis and not acting.the analysis is garbage if you do not use your analysis.

g) trade on brake outs.if the days opening is weaker then yesterday generally 9 out of ten times the share would close weak.buy when the share price crosses the brake out major break outs is 20days moving average,50 days moving average,200 day moving averages,weakly break out,daily break out.

h)follow the trend in the industry.

i)never add to the mistake,every investment is a fresh decision and fresh funds.so add on to the new data and trends if your last decision has gone wrong analyse what mistake you have made in the last decision ,why the market is reacting against your idea of investment.go back to the calculation again.

j)do not do excess trading that add to the cost.

k) always calculate the cost of carrying a stock in your portfolio.

l) learn to sell,it is when you sell that counts,most of us are in a habit of buying and hoarding things.

m) do not marry the scrip

n) always hold on to scrips which are performing better and giving you good returns .

o)refer to mazines and website for regular updation of th ecompanies news anlysis,see what big fund are doing about the stock,because a big fund can distroy the value and creat value within short time just by massive investment and selling.

p)price earnig ratios and earning per share can be decptive some times.do not depend on one ratio to analyse the share price.

q) question your self at regular interval and at different price tags whether you should hold on to the share have your target.

s)book on sudden price rises and check on sudden price falls the reasons.

t)do not try to time your trade at the bottom and high.it is not a good practice to expect that you would always be able to buy at the bottom and sell on the high.

u)use charts,graphs,data,fundamental and technical.etc etc

Okay, I never said, no risks, but caluclated risks. The reason for our current financial crisis is because people "throw caution to the wind".

You are Right. A trader is like any other businessman. A business has to be disciplined. If he is not than he is destined to doom. Only a disciplined businessman is going to succeed in the business that he is pursuing.

A trader must be disciplined in his trading patterns. One should know his/her risk appetite and trade accordingly as per the risk return requirement. One should keep the basics clear while trading and should be aware about the investments  he is trading in. A good trader knows from experience that over a period of time he may engage in more losing trades than winning ones. But money management,
and a careful assay of the risks protected by realistic stops, will keep the
trader out of trouble and ensure that on the "big" moves, he will profit.

Fro better awareness one must read "The Disciplined Trader" by " Mark Douglas"

Discipline is always fruitful..be it any aspect of life..random trading may yield profit and better results but again it is only by chance..but if u take the case of disciplined trading you know before hand what you are doing and what u expect out of it..so I think mindset is clear cut..if things are disciplined...

Jyoti,

Discipline goes hand-in-hand with knowledge and Mindset.

Yes Pierre you are right here, one needs to be disciplined in their trading, one needs to have back if anything goes wrong in trading, so disciplined trading survives, whereas trading in Adhoc manner don't do good for that  matter, and thanks for sharing the link it had some very good insights....thanks for the debate.....