Sorry for n00b question but is there an index like sensex or Nifty that includes the sum total of the entire stock market?

Some useful Psychological Tips for beginner Daytraders part-3

  • When trade starts going against us, our first duty is to book calculated loss & not thinking
    about saving that trade by averaging down or looking at charts with different angles with
    the hope it may reverse. It may reverse or not but when our stoploss gets triggered, we
    must book it.

  • Over a period of time traders tend to forget rules that they made in their well defined
    trade plan which must not happen. Rules are made based on all scenarios which don’t
    occur always. For example if your trade plan says 1 trade per day, why do you even think
    of second trade ? You have decided to take only one trade for some reasons for sure. If
    you say use Nifty futures chart & not nifty spot chart, it’s also for some reason.

  • Once chart is completely formed after market is closed, it becomes so easy to find trade
    opportunities on that chart. You always find it so easy to make profit from it.But when
    you do real trading on live market, charts are being formed & not complete. That time
    you really don’t know what could happen next.

  • Why chart timeframe is so important for you…? Different chart timeframes give different
    results on different days. What works today may not work tomorrow. If you keep looking
    for perfect chart timeframe, you would never trade because you would hesitate a lot.
    Hence select only one timeframe & concentrate on it. Feel comfortable with it & never do
    comparisons with anyother timeframe. Remember that what works for him, may not
    work for you. Find your own way. After all Every chart timeframe, be it 1 min, 2 min, 3
    min, 5 min, 10 min, 15 min, indicate same high/low & same Nifty moves. Just there is
    difference in number of candles.

  • Instead of searching for perfect trade plan, try to improve your trade basics ( entry-exit
    execution, order window, chart planning, trailing position, setting proper stoploss etc)
    with average trade plan. That’s where you will make money. Deciding on a system is less
    important than gaining enough skills so that you are able to make trades without second
    guessing or doubting the decision.

  • I can understand it really feels bad when your trading is over in the morning & as per
    your discipline you don’t have to take another trade even when you see so much good
    opportunities over chart. Again I say if I set a discipline not trade in the afternoon, it’s for
    a reason. I have seen so many days where for recovering my early losses, I have
    overtraded, not eating on time, stressed with fear, blaming myself ‘what the hell I am
    doing…?’ & I would never repeat this once I get out of this. Trading is not a whole day
    work where you come & take 4-5 trades, attending full hours. It may suit to scalpers but
    you are not a scalper. In fact consider that trading for you is your morning business.
    Once you get free out of it, you do other activities. Anything that might be related to
    trading indirectly or completely different. But it should not be taking live trades again
    even when your morning business is already over.

  • Once you become Mechanical Trader, Trading becomes live performance. You come
    everyday, open terminal when market is open, take a trade as per your set up, close your
    position either with profit or loss, close your terminal, that’s it. & you repeat it over &
    over again without comparing, without doing post analysis on what should’ve happened,
    not reading charts for tomorrow, because all these stuffs are of no use to Mechanical
    trader. (Rule based Trader).

  • Trading is about you, not the system. A trading strategy is not as important as the
    mindset you apply in it. You are what makes or breaks your trading. You need to be
    focused. This means picking a time of the day to trade where you can concentrate 100%.
    No distractions from family or day to day life.

  • If you trade outside of your trading plan then it will more than likely be the wrong trade,
    & yes you may get some big wins but consistently over time you will not be trading & you
    will not be set free.

  • Rules cannot be broken as broken rules will lead to losses, because you now know that
    these rules are in place to keep you safe from wild market moves, & more importantly
    from yourself. The rules you adopt will be the guides to make consistent results. But
    you need to be committed to not breaking them or trading outside of your trading plan.

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