Your Questions About Successful Trading

Richard asks…

which company gives successful trading call ?

best intraday trading call in nse
i dont blankly follow them just need to confirm my trading call

John answers:

You are deluded if you believe magically profitable trading calls exist.

Investing requires knowledge and expertise. Read. Study. Take a class. Learn to invest on your own expertise instead of silly tips that never work.

Carol asks…

History help?(trade questions)?

1. what elements are necessary for a mutually successful trade?

2. how do scarcity and abundance affect trade?

John answers:

Each individual has his own personal value scale organized by ranks according to the law of marginal utility. If another individual possesses a good or offers a service higher on the value scale of another than what the other would have to give up to get it, then a trade becomes possible — each party gains in satisfaction because, after the trade, each has a good or service which is higher in his or her value scale per the law of marginal utility.

The law of marginal utility is rooted in scarcity. Scarcity is unavoidable, because all men are mortal, so each man’s time is scarce. Since time figures into the evaluation of all things useful to man, from making a sandwich to going to the moon, all goods or services are scarce. Acting man seeks to maximize his satisfaction by securing to himself the goods or services which most satisfy him. This means that, for any given supply of goods, an actor will apply the first of the goods to his most pressing need, the second to his second, third to third, &c.

Let’s use cars for an example. Assume I have ten cars. I use the first to drive to work or school — very important! I keep # 2 for a spare in case # 1 breaks down. # 3 I convert to a race car for use on the track on weekends. # 4 I rent out for a taxi. # 5 I convert to a billboard to advertise my business by parking it in the lot of a friend. ## 6, 7, and 8 also go into the taxi pool. # 9 becomes another billboard. But, because the taxi business isn’t that remunerative, I have no apparent use for # 10, so I drive it off the pier and allow the coral to turn it into a reef to improve the fishing.

Obviously, you may have a better use for the tenth car than driving it off the pier and might be willing to give me more for it than I can get in additional fish. In this situation, we can trade — you get the tenth car, and I get something you have too much of which I need more than fish.

In this situation, both of us win because after the trade, we’re both better off.

Ruth asks…

What do I need to know about short term stock trading to be successful?

John answers:

To be a trader you must first learn how to invest. You must know the products and the markets in which they trade and more importantly you must know the rules that govern those products and markets. You should start by reading “Investing for Dummies” by Eric Tyson.

Then here’s a list of books you should consider, at least read half of them
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
How to Trade in Stocks, Jesse Livermore
Millionaire Traders, Lein & Schlosberg
One Up on Wall Street by Peter Lynch
Reminiscences of a Stock Operator, Edwin Lefevre
The Disciplined Trader, Mark Douglas
Trader Vic-Methods of a Wall Street Master, Victor Sperandeo
Trader Vic II-Principles of Professional Speculation, Victor Sperandeo
Trading for a Living, by Alexander Elder
Trading in the Zone, Mark Douglas

And when you think you want to trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
and/or http://www.tradingsimulation.com/

Before you enter your first order you need to address four major policies and have very strong discipline to follow them
1 – You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
2 – A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away – don’t loose more than you need to and don’t be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
3 – You must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.

Unless you are willing to study and follow the above you will never make it as a trader. To be successful as a trader will take work and constant study of the markets and the products traded in those markets, there is no easy way.

Sandra asks…

japan’s successful trade policy has created a?

large food supply ,
strong work ethic ,
huge trade surplus ,
shortage of raw materials

John answers:

Huge trade surplus

Linda asks…

Options Trading Advice?

Hi Everyone!

I’m turning 18 next month and I want to venture into the options market. I’ve been into investing and trading since I was 16 and I’ve been demo trading on and off since then; I have a foreign exchange account in my dad’s name and I’ve not done that bad on it – I have a pretty good strategy after a lot of trial and error.

However, I feel that the foreign exchange market isn’t for me anymore; it’s great because of the liquidity but I don’t get much excitement from it.

I don’t have vasts amounts of capital either – so directly trading stocks would be difficult. This is why I feel options might be a less-riskier market for me to enter. I was planning on putting another £500 into my forex account when I turned 18 after moving it into my name but I might switch the cards around and put that into an options account, depending on the advice I get here.

So, would you say £500 is enough to trade options? (I would most likely be trading options for low priced stocks so I have the capital to purchase the stock from the option if it’s profitable). What is the best broker to trade options with in the UK? Should I trade options online or do it traditionally and ring the broker up? Or Should I stick in the forex market, or both?

Thanks, I appreciate your time!!

John answers:

I don’t think anybody can be successful trading options without a decent base in trading underliers. I know you are all 18 and think you know everything, but this is just a stupid kid idea.

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