Winning the market

“Now, experience The Winning Side of the market through our Mentoring Service”

Although most of us know the simplest way to win the market is “Plan Your Trade and Trade your Plan”, yet, the fact is, most of the traders fail to win mainly because of these 2 reasons:

  • Not having a proper Trade Plan
  • Not being able to trade as per the plan

So the question is what is the solution?
Solution: - Mentoring.
You need a good mentor who would transform you to be a winner.

Let’s see, what role a mentor can play through an Example of a Medical Profession. We all know that even after completing the 4-5 years of studies a new medical surgeon needs to be trained under an experienced surgeon. Now the question is why it is important to do that? Because, when they practice under an experienced surgeon, they can get rid of confusion, anxiety, excitement and stress. They disciplined their mind and body in such a way that their action becomes automatic. During this practice (repetitive process), they build the confidence. This confidence enables them to perform a flawless surgery. Thus, the mentor helps them not only developing the skill but also in developing the winning mind-set (confidence) to become a successful surgeon.
Trading is also a skill based profession that needs proper knowledge (to plan your trade) and proper discipline (to trade your plan better).

Let us first understand, what do we mean by, “Plan your trade and trade your plan”?

1. Plan your trade: there are two aspects here:

  • Having a proper ‘Trading Method’
  • Having a proper ‘Money Management Plan’

The Trading Method suggests us to have a method which can give us positive expectancy. (i.e. it has reasonable probability of success and has a favorable Reward to Risk ratio). This method should have been back-tested for long period so as to provide us confidence to trade. With the good Trading Method, we will be able to generate ‘trading calls’ more systematically and with more reliability.
Money Management (MM) is the key to achieve our financial objective through trading. It tells us what amount of risk we should take for each trade in relation to our capital and our trading objective. In absence of MM, we won’t be able to know whether we are taking appropriate risk? And if we don’t know what risk we should take, we will either take too big risk (and lose money too fast) or we will take very small risk (and will not be able to reach to our targeted return).
These both (Method and Money Management) put together is what we call ‘Plan your Trade.

2. Trade your Plan: Trading the Plan is concerned with our ability to implement our trading plan in disciplined manner. In absence of discipline, we will not be able to make money even with the best of trading methods. Maintaining discipline and trading as per the trading plan is utmost important in winning the market. However, maintaining discipline is extremely difficult.
As per research, most of the traders break their discipline when they have:

  • a) Big profits or consecutive profits
  • OR
  • b) Big losses or consecutive losses

When we have big profits, we get excited and we tend to overtrade with too big quantity. When we incur big losses, we get stressed and we tend to avoid the trades or trade with very little quantity. In both the above cases our psychology compels us to break the discipline and forces us to act against our trading plan.
Hence, the only way to maintain our discipline is to keep our profit or loss within our psychological limit. When our profit and loss are within our mentally acceptable size we will not get disturbed. Especially, we must avoid large losses as compare to our capital.
The only way to manage the size of our profit or loss is through Money Management (MM). The MM will show us that how much amount we should risk for a trade as compare to our capital. The well defined risk (within our mentally acceptable level) for every trade will help us in keeping our emotions in control. When our emotions are under control, we will be able to maintain our discipline well.
In case of trading, a Mentor will understand your individual risk-capacity as well as your trading-capital and accordingly he will help you to design a customized trading plan for you. Then the mentor will take care that you implement your trading plan with discipline. If you don’t follow the plan, then he will hand hold you and bring you back on the track. This is how he will make you win the market.

At Market-Hub, we are all geared up to provide you the state-of-the-art Mentoring Service:
Through our Mentoring Service, we will provide you guided trading and personalised hand-holding, so that you can trade with discipline.
We follow the process as mentioned below:

  • Based on the capital you plan to invest with us, we will offer you alternative ‘Trading Plans’ to select. For example, if you have very small capital we will offer Trading Plans for Cash-Segment only. Once you select a particular plan, we will not allow you to trade in derivative markets. Sticking to only one ‘Trading Plan’ will help you in staying focused and disciplined. Of course, you can select multiple plans provided you have sufficient capital to support that plan.
  • This ‘Trading Plan’ will have Broad Perspective and will include, “what to buy, when to buy, how much to buy and when to exit”.
  • The trading calls generated through such ‘trading Plan’, will specifically suggest, how much risk you should take for that particular trade. Thus, based on your trading capital, the trading call will tell you exact quantity of particular stock you should trade with.
    By providing guided trading we help you at the first step of winning the market i.e. Plan your Trade.
  • It is not only that we suggest you to trade strictly as per the planned quantity, we will also monitor whether you are trading as per the plan. If you break the discipline of trading (e.g. if you take higher risk by trading more quantity than suggested to you) our executive will call you and suggest you to manage your quantity according to plan.
    By providing personalised hand-holding, we help you at the second step of winning the market i.e. Trade your plan.

In short, based on your capital, we will offer you to select a particular ‘Trading Plan’. This plan will have a suitable risk consideration for you. This risk is designed in such a way that it will be within your psychological tolerance limit. Hence, even if you lose in the trade, this limited risk will not hurt your psychologically much, and will help you maintain your discipline. Yet, if you break the discipline, our executive will call you and guide you to be on track.
In this manner, you will be able to practice the real secret of winning, “Plan your trade and Trade your Plan”.
As a Member Broker, we have unique approach of Discipline Based trading. We don’t expect our clients to trade more. We want them to be aware of Risk and Money Management part of the Trading.
Through our Mentoring Service, we wish to provide Guided trading and personalised hand-holding with which you will surely be better off and will be able to win the market.
Like a mentor we are committed to make you win the market. If you too are committed to transform your trading and experience the winning side of the market, please be in touch.

Diwali Muhurat
Pics 2073