1. A successful trader has a trading plan and does his homework diligently.
2. A successful trader avoids overtrading.
3. A successful trader does not get unnerved by lossesessons from your losses.
4. A successful trader tries to capture the large market moves.
5. A successful trader always keeps learning.
6. A successful trader always tries to make some money with less risky strategies as well.
7. A successful trader treats trading as a business and keeps a positive attitude.
8. A successful trader never blames the market.
9. A disciplined trader keeps a cushion.
10. A successful trader knows there is no Holy Grail in the market.

What must I do now?
This is the question probably every equity investor would have asked himself a number of times in the past few months.
With the stock market moving to dizzying heights before succumbing to gravity, it's easy to get nervous or over-excited.
Here's what we suggest you do when the bulls and bears kick up a lot of dust.

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The market may be bad, but I slept like a baby last night. I woke up every hour and cried.

Intra day traders / Swing Traders often face difficulties in entering the market when there is a gap open. But the gap need not destroy your trading plan. You can do a quick analysis, adjust your trading strategy and get into a good position well after the crowd pulls the trigger on a gap play. Here is how.

Let the index/stock trade for the first fifteen minutes and then use the high and low of this "fifteen minute range" as support and resistance levels. A buy signal is given when price exceeds the high of the 15 minute range after an up gap. A sell signal is given when price moves below the low of the 15 minute range after a down gap. It's a simple technique that works like a charm in many cases.

If you use this technique, though, a few caveats are in order to avoid whipsaws and other market traps. The most common whipsaw is a trading range that lasts longer than 15 minutes. If an obvious range builds in 20, 25 or even 30 minutes , use those to define your support and resistance levels. Also consider the higher noise level in the morning. A breakout that extends only a tick or two can be easily reversed and trap you in a sudden loss. So let others take the bait at these levels, while you find pullbacks and narrow range bars for trade execution.

1. What should be the price and volume action which we should look out for in this trade?

There is a 15 minute range. Thus, there is a high point in the range and a low point. An ideal condition for buying will be for prices to remain close to the high point for the past few minutes, making some kind of a consolidation. When prices breakout from the high of the 15 minutes, we will also have a breakout from this consolidation. This is better than one breakout. The reverse is true for breakdowns. Volume should exhibit similar action, increasing near resistance and falling near support (for a bullish breakout). Now, all of this defines an ideal condition, but real life is different.

2. Can we predict some target for this trade?

should not try to predict what the market will do. Instead, we can say, this is what I, the trader will do. So, an up breakout should move up by the same amount of points as the 15 minute range (high - low). The trader can plan to take partial profits at this level. A lot of innovation can be done with levels, R1, R2, prior resistance and support.

3. Where should we keep our stoploss?

the other side of the range. If you go long, the stop should be just below the low. As the trade moves in your favor, move the stop to the mid point of the 15 minute range. Again, you can do a lot of experiments with stops & exits.

4. Shall we trail in this setup?

My research suggests that you try to have a break even trade after you see the trade move in your favor. But, beyond break even, let the market decide what it wants to reward you with.

A Stock Trader's Story - Why Aren't We Rich Daddy?
He had bought and sold hundreds of stocks and several properties over those years, but had never really made any real money.  He owed it to himself and his family to finally get his act together and make some changes to his trading plan.  That was the day the pain of not living up to his potential made him sit down and write out his trading strategy and rules.
One Saturday morning, while he was sitting at his computer studying the market, David's 7 year old daughter came up, tugged at his shirt sleeve, and said, "Daddy, why aren't we rich?"
He looked his child in the eye, and thought to himself, what a great question - why aren't we rich?
As she stood there expectantly waiting for an answer, he struggled to come to grips with the realization that, although he had focused his undivided attention on nothing but creating wealth for more than 15 years, he was still broke.
He had bought and sold hundreds of Stocks and several properties over those years, but had never made any real money to speak of.
He looked at his daughter, and asked, “What makes you think we aren't rich, sweetheart?”
She looked at him sternly and said, “Because you said that if we were rich, you and mom wouldn't have to go to work any more, and you both still work all the time.
You said we could live near the beach and play in the sand every day. I want to know what you are doing about that. When can we go and live at the beach?”
There’s nothing like a child to cut straight to the heart of the problem - and what was he doing about it?
“We're not rich because daddy made some mistakes,” he finally answered.
“What kind of mistakes, daddy?” she asked.
“Well, I bought some shares that were going down and then didn't sell them soon enough. Then I bought some houses but sold them again just before they went up in price.”
“Why did you do that?” she asked.
He had to think long and hard about that. He had no reason to buy shares that were going down in the first place. He had no reason to hold on to them when they kept going down. He had no reason to sell the properties either, come to think of it.
Her logic was flawless – why wasn’t he doing better financially than he was?
He knew in that moment that he had to change his strategy.
He owed it to himself and his family to finally get his act together and make some changes - that was the day the pain of not living up to his potential made him sit down and write out his stock market trading plan...his trading strategy and rules – he had to have a life raft.
He started by writing out his vision - what he wanted his life to look like when he became a successful trader and investor, then worked backwards from there - through the details of how he was going to achieve his dream.
He saw in his mind the 4 bedroom penthouse on the beach, the red Ferrari 360 Modena, the 80 inch plasma screen computer monitor in an office overlooking the surf beach 17 floors below, the family holidays, the million dollar donations to worthwhile causes and children's charities.
He visualized all the tremendous benefits of becoming a successful trader, investor and philanthropist.
He realized that his main problem all this time had been that he was afraid of losing, and that fear was just too expensive to let it control his life any longer! He had been playing not to lose, instead of playing to win.
He decided he would never again sell a property unless there was a compelling reason to do so.
He decided that he would no longer accept anything less than perfect execution of his stock trading plan.
He decided that he would take every trade entry signal his system gave him and follow his trading plan as if his life depended on it.
As if, after each trade was closed out, he had to stand in front of a panel of super traders, and explain his actions to them - why he entered where he did, where he placed his stop losses, why he exited when he did.
And if they weren't convinced he followed the rules of successful trading, he would be taken out and shot!
This certainly focused his attention on only trading strong trends - trends where the price bars were trading above their respective moving averages for long trades, or below for the moving averages for short trades, and the Stock price was moving strongly in one direction.
He pretended that if he couldn't justify his trading decisions to his trading Mentors, he was dead...
That was the day he resolved to study his selected group of Stocks, the ones that had a track record of trending strongly, every day.
He would then take every trade his system produced, put his stop loss orders in the market as he entered each trade it a place where the trend had to change to take him out of the market, and he would hold every position until the trend changed.
He would act 'as if' he was a great trader, even though his record up to that point had been less than inspiring...
That innocent question from a child turned out to be the start of David's successful trading career.
He started to trade profitably and consistently for the first time in his life. He thought he was doing well, and indeed he was making money.
He knew from his wealthy mentors that rich people are different; they make rational decisions based on facts, not emotions.
They understand the value of money - they respect it as a tool for building a better world. They buy well for logical reasons and hold until there is a valid reason to sell.
Then one day, he closed out a trade, and excitedly told his daughter, “Daddy made a big profit in the market today darling, come and look and see what I did.”
His daughter came over to the computer and looked at the screen as he excitedly showed her where he had bought a Stock and then sold for a $13000 profit. She looked at him and said, “But daddy, it's still going up, why did you sell now?”
His smile faded as the power of that question sunk in...why had he sold it?
What was he doing getting out of such a strong trend just to take a profit? What would his trading Mentors say?
She was right...the market was still open, so he bought back in again. He had never been able to bring himself to do that before - he was becoming a great trader!
The rally continued and he kept buying more as it rallied. The trend finally changed, but his profit on that trade, when he eventually got a valid sell signal, was $34500!
His daughter's simple, logical question 5 weeks earlier had been worth over $20000!
That was the last time he ever got out of a trade based on his emotions. His fear of the market was gone - thanks to some simple questions from a 7 year old...
So now, it's your turn.
Whenever you are preparing to place a trade, find a small child, even if you have to borrow one, and ask them what the trend is. Then don't trade the other way!
If your trading isn't as great as you know it could be, decide to create a trading plan now that will become your life raft.
Remember, fear is just too expensive folks.
If you are afraid of losing money, reduce your position size until your fear goes away.
Once you have made a series of small profits, you will be trading with the markets money and you can increase you position size according to your growing confidence and account balance.
If you have a series of losses, reduce your position size again until you get back on the right track. Stick to your trading plan once you have something that works consistently.
Then, just go out and do it!

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Price-earning (P/E) ratio is commonly used while taking investment decisions by many investors. P/E ratio is the ratio between the market price and earnings per share. The ratio indicates the market price of a share vis-a-vis its earnings.

According to one view, lower the P/E ratio, the better it is for investors, as there are chances of higher appreciation.

According to others, it is the other way round. Of course, there are exceptions to these theories as well. P/E ratio is calculated as market value of each share divided by its earnings. For example, if a company's stock price is Rs 200 and it has an earnings per share of Rs 5, the PE ratio is Rs 40 ( Rs 200 divided by Rs 5).

The earnings per share can be taken for the full year or for the last few quarters. It can also be taken from estimates of earnings expected in the next few quarters.

Sometimes, the P/E ratio is referred to as the 'multiple', because it shows how much investors are willing to pay per rupee of earnings. In general, a high P/E means high projected earnings in the future. However, a P/E ratio actually doesn't tell you a whole lot by itself. It's usually only useful while you compare companies in the same industry, or a company's own historical P/Es.

The higher the P/E, the more you are paying for an estimated stream of earnings. Investors usually are willing to pay a higher P/E for companies they judge will be growing faster than the norm even though they do not pay those earnings out in dividends but retain them to fund future growth.

If that growth is realised, the price of the company's stock usually grows faster than the price of a company with a slower growth or higher dividend-paying company. So, the higher P/E produces greater upside potential.

However, if the estimated earnings are not realised or the stock itself loses favour with investors, the downside potential is greater as well. The risk is not just in the ability of the company to earn profits, but also in the higher price you pay relative to its earnings. If a company goes from a P/E of 50 to a P/E of 25 and maintains earnings of Rs 5 a share, your investment goes from a value of Rs 250 per share to a value of Rs 125 per share even though the company is still earning profits.

P/E ratio is a commonlyused way to value a company and to determine what a company's stock should be worth. Generally, a company with a high P/E ratio is expensive when compared with a company with a low P/E ratio, since with a high P/E ratio one is paying a larger multiple against a company's earnings.

igher P/E ratios are often associated with 'growth stocks', or companies that are growing faster than average. Investors believe that such a company's earnings will be higher in future. Usually, this yardstick is used to analyse whether a stock is under-valued, overvalued or trading at fair value by investors planning to buy stocks. 

SOURCE :- ET

In case of an up rally,

say "No" to shorting indications such as RSI crossing 85 or even more!
say "Yes" to any indication to go long without a hitch such as RSI falling to 40-30-20!
Going short at every high bend inside an up rally can be dangerous and very less profitable.
Going long at every low bend inside an up rally can be least dangerous and highly profitable.
In case of a down rally,
say "No" to all indications to go long such as RSI falling below 15 or even more!
say "Yes" to any indication to go short without a hitch such as RSI rising to 50-60-70!
Going long at every low bend inside a down rally can be dangerous and very less profitable.
Going short at every high bend inside an up rally can be least dangerous and highly profitable.
In case of a range-bound movement,
say "Yes" to all indications to go long or short without a hitch!
Follow this simple but magical advice and your profits will double and losses will become quarter of whatever they are as of now!
Happy Trading!

A) In an up-trend

Buy when William % R on 1 month chart (default value 10) crosses above 80
and
just starts to decline after making a "^" peak or plateu!
Book profit as per your comfort level or when trend ends.
(avoid shorting in up-trend)
-------------------------------------------------
B) In a down-trend
Short when the said William % R crosses below 20
and
just starts to rise after making a "V" or "U" turn!
Book profit as per your comfort level or when trend ends.
(avoid going long in down-trend)
-------------------------------------------------
C) In a range-bound market
Buy when William % R crosses above 80
and
just starts to decline after making a "^" peak or plateu!
Short when William % R crosses below 20
and
just starts to rise after making a "V" or "U" turn!
Book profit as per your comfort level or when trend ends.
(don't hesitate to short or long in rangebound or weak-trend markets)
-------------------------------------------------
This method is particularly effective and accurate with Nifty or any index.
-------------------------------------------------
How to get graph with William % R?
A) go to website (http://www.google.com/finance?q=NSE:.NSEI)
for stock pl search stock in the column before "Get Quotes". These google finance charts give almost live quotes for NSE (BSE is delayed).
B) click on '1m' inside graph window
C) click on "technicals" below graph window.
D) Click on "add technical"
E) Select William % R (10/30min default value will appear automatically)
F) You are ready!
--------------------------------------------------
Critical factor = You have to be sure about the trend!

There are 101 ways to know the current trend.

1st one is common-sense gut-feeling observation.

6 more are given below.

Rest 94 can be shared by fellow traders.

2. RSI

= When RSI 14/1d on 3 month or 6 month chart is moving from lower boundary towards upper boundary the trend is up. When reverse is the case, the trend is down.

3. SAR

= When on 1 month or 3 month chart, SAR (Stop And Reverse) dots are below the priceline, the trend is up. Otherwise, the trend is down.

4. EMA 34/8

= When EMA 34 line is below the priceline, the trend is up. Otherwise, the trend is down.

5. Higher high, higher low

= When the priceline is making higher highs and higher lows the trend is up. When it is making lower highs and lower lows, the trend is down.

6. Premium / Discount

= Till the Nifty futures premium is substantially higher than the spot, the trend is up.
When it is substantially lower than the spot, the trend is down.

7. Experts on TV

= This is the easiest of all. Even easier than the common-sense observation. Just switch on any business tv channel in the morning before the market opens. The experts on air may not be predicting the stock or market movement for the day right but they certainly have a good idea about the trend.

Combination of more than one ways can estimate the trend more accurately.