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Trading Learning Meet with Mr. Pravin Patil

Hi All,
Yesterday was a great day for us, we met with self motivating and disciplined trader Mr. Pravin Patil from Pune. Initially meeting was scheduled beteen 9 to 11 AM. But due to interesting topics it was streteched to 5PM with one coffee and lunch inbetwwen. The training was so immense that we hardly moved from our place for natural calls. Excited so lets begin to see what our Master Pravin says.

 Pravin is humble and down to earth guy, he started with his initial decsisions, how he came into the market, how he switched from Currncy trader to stock investor to stock trader and now as successful options trader.

 He says If you can't keep your emotions in check when trading, you will lose money. The most significant action that you can do to improve trading profits is to work on yourself. Really knowing yourself and how you think can give you an edge that others in the market don't have. Hopefully, you can develop the mental edge you need to become the best trader you can be using self motivation, discipline.

 Markets are random, dynamic, irrational to deal with this we need to learn probability theory and apply it while doing share trading. So many traders consider outcome of single trade as success or failure  due to natural thought process which we have built from our childhood. So we need to measure success in terms of 100 trades or trades taken in a perticular month. Also we need not to be very serious about outcome of single trade.

 Build self belief with better analysis and back testing of any trading idea before going into the trade. Do your homework before begining the trade.

Bullet Points:

§  Give Time Slow and Steadliy you can learn the dynamics of the share market
§  Develop Self Belief
§  Money Management & Psychology are the top most important thing in trading
§  Treat trading as a Business
§  Personal Strategy (System Trading)
§  Don’t consider trading income as passive income, consider it as a active income and go for profits
§  Cut your losses short & make the profit run
§  Stay away from unreasonable expectations. Keep reasonable expectations
§  Discipline, Processes
§  Learn from the mistakes
§  Keep record of your trades, emotions, deviations, Logics, Market movement at that time
§  Win/loss ratio
§  Risk/Reward Ratio
§  Pray and hopes are dangerous in the market
§  Plan the Trade, Trade the Plan
§  Plan Entry, Exit, Stop Loss vs Actual Plan Entry, Exit, Stop Loss create a log
§  Accept your mistakes & take actions
§  Improve Learning everyday and keep reapeating
§ Stop loss compulsory: Put the stop loss first & then place the order (to avoid mistakes)
§  Rule based Trading
§  Increase on screen hours
§  4 to 5% return are ideal/month
§  Risk Reward Ratio: 1:2, Win/Loss Ratio: 50%
§  Strong Buyer + Weak Seller = Upward Movement
§  Strong Seller + Weak Buyer = Downward Movement
§  Strong Buyer + Strong Seller = Choppy Market
§  Before taking trade check Moving Average, RSI, Open Interest, and Delivery Volume
§  Short Building, Short Covering, Long Building, Long Covering
§  Stay away from: Pain Avoidance Mechanism
§  DII/FII data NSE
§  Fight or flight
§  Success Depends On (20%-Technical’s, trading knowledge; 80%-Money Management, Psychology)
§  Becoming successful trader is difficult goal but achievable goal Tell this to self everyday
§  Cheaper stock becomes cheap
§  Find your own trading strategy idea
§  Do the back testing of your idea
§  Believe in the tested system
§  Do paper trading

Books to Read
1. Trading in the zone - Mark Douglas Watch videos also
2. Disciplined Trader  - Mark Douglas
3. Trade your way to financial freedom - Van Tharp
4. How to make money in Intraday Trading  - Ashwini Gujaral
5. How to make money  trading Derivatives - Ashwini Gujaral
6. Market Wizards - Jack D. Schwager
7. Rich Dad Poor Dad - Robert Kiyosaki and Sharon Lechter

 Love,
DPZ.

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