Profits on Short Term Trades.....Important article

more than 99% who trade in the stock market, trade with a. rumours, b. information, c. stories, d. because the ticker shows the prices are green, e. news papers are showing the market is up, and f. a big shot is buying. These are the reasons many have when they buy shares. all this is pure gambling. If you are reading my posts do not read, because my articles won't benefit that approach.

I encourage you to trade to a plan. You need to plan your buy, sell and stop levels. if you do that then you have completed 90% of your plan. if you love to trade for above reasons, have your buy, sell and stop levels and trade on them. to give an example today there is an article in the papers about lanka hospitals plc. now if you want to put a buy order tomorrow, do it, no worries, but ask yourself how much of profits you want. do you need 1 rupee of profits after cost or more. then ask yourself whether it is achievable. if you think it is achievable then ask the next question from yourself. i.e. what if the decision is wrong, at how much will you sell at a loss. is it an x amount of money or %. once you decide on the BUY, SELL and STOP, then enter the order. then keep a track of your trades, and see whether they have succeeded or not.

This is why I post the following tables regularly. They give you the summary of the profit and loss, and also the list of trades based on the buy, sell and stop dates. this is done because i want you to learn the right way of trading, so that you will be confidently trading and investing in the stock market.

Table 1 shows you that Rs. 21,342.96 was the profit from 36 trades, whilst the loss was Rs. 9,373.41, from 14 trades. As at 10.5.2016 there had been 50 trades in all.

Most of these buy calls were posted in the blog, whilst some of them were communicated to clients.

Table 1:



In the Table 2 below is the list of 50 trades in detail. The important thing I tell any trader is to take the Profits out. This must be done on the provisioning method. Meaning that when you take the pofits out deduct the losses as well. Based on the above figure you could deduct Rs. 1,342.96 out of the profits and take Rs. 20,000.00 out. This way what you have deducted is the amount that will be reduced from the loss of Rs. 9,373.41. Thereafter the loss will have come down to Rs. 8,030.45. The provisioning can be done according to your choice and the above is just one method. What ever the method please do it.

Table 2:



there are many trading strategies, but only one rule to trade i.e. BUY,SELL and STOP RULE.
If You master this then you will reach the ultimate experience, the real effect..........Success and independence. This could lead you to even making trading your main income generator.