Knowledge that you can use
1. Emotion FREE TRADING
Excellent reading for traders to refresh and renew their perspectives for trading.
| larry_lewin_-_the_secrets_of_emotion_free_trading.pdf |
2. Trading compliance spreadsheet
Trading Compliance worksheet.
In order to use the worksheet, please down load it and use one copy of the spreadsheet for 1 instrument - eg. NF intraday. You can create multiple sheets in the same spreadsheet for other trading types e.g. NF Positional, BN Intraday and so on.
For the purpose of compliance the sheet shows upto ten trades per day. For each trade, please mark whether your entry was at the called level or not by marking a "Y". After the trade exits, again mark whether the exit was at the target for each lot or not. If one lot was at target and the other not as per exit rule, then mark "N".
As the chart fills up, the spreadsheet will calculate your compliance automatically.
Try to maintain your compliance at better than 90%.
Good luck.
In order to use the worksheet, please down load it and use one copy of the spreadsheet for 1 instrument - eg. NF intraday. You can create multiple sheets in the same spreadsheet for other trading types e.g. NF Positional, BN Intraday and so on.
For the purpose of compliance the sheet shows upto ten trades per day. For each trade, please mark whether your entry was at the called level or not by marking a "Y". After the trade exits, again mark whether the exit was at the target for each lot or not. If one lot was at target and the other not as per exit rule, then mark "N".
As the chart fills up, the spreadsheet will calculate your compliance automatically.
Try to maintain your compliance at better than 90%.
Good luck.
| trading_compliance.xlsx |
3. trading calculator
Many traders have told me that they are unable to stay with profitable trades and exit too early, not even making the minimum profit. While trading rules have been specified, during the heat of the trade, these are forgotten. To make things even simpler than before a Nifty trading calculator has been introduced, where you simply enter the trade price and stop loss and the current high price after the trade is initiated for a long or the current lowest price for a trade that was initiated as a short. The calculator then displays what prices you can exit at. This leaves out the guesswork completely. Click on the image to get a larger view.
The calculator lets you enter the long or short price and their stop losses.
For a long trade, you enter the approximate high value after the trade has started and for a short trade, enter the approximate low value after the trade has commenced.
The calculator has four display lines:
Current price - shown in steps of 2 points.
Exit price for the first of the remaining lots.
Profit at the exit price.Floor price - If current price reaches the level as shown in the column, you will exit all multi lots at the floor price shown here, if the price retraces from current price.
The calculator does the following, lets say we enter a long trade at 5000.
The maximum price is 5014 and price retraces. You exit at stop loss of 4990 for lot 1. and at cost for lot 2 and more.
The maximum price is 5018 and price retraces. You can exit lot 1 at 9 points on the retracement and lot 2 and more at cost+brokerage.
The maximum price is 5020-5029. Lot 1 exits at 5020 and lots 2 and more can exit at 5010-5015. See the exact prices in the calculator for different current prices.
The maximum price is 5030-5040. Lot 2 exits at 5030 and lots 3 and more can exit at 5020-5035. See the exact prices in the calculator for different current prices.
See the picture below to understand.
So the steps to use the calculator are. Enter the prices for your trade and the current high price and stop loss levels given to you.
The first lot that you hold will always follow the exits shown in the Exit price line. See what I mean by this.
Exit price is the exit for the first lot that you are holding. If you are holding 3 lots, then till the lot 1 exits at 5020 in a long trade, lots 2 and 3 are the 2nd and third lots. Once lot 1 exits, then lot 2 is now the new lot 2 and lot 3 is the new lot 2. The new lot 1 will follow the exit price line rules till it exits at a target or lower.
So, if the price goes to 5028 and retraces back, you can exit at 5020 or in the worst case the floor price which is 5014. So that if you dont catch the 5020 exit, you at least get 14 points profit for the remaining lots. Lot 2 (previously lot 3) also exits at this price.
From 5002-5010, lot 1 will exit at the Stop loss price, 4980 as shown.
However, lots 2 and more will always exit at cost or cost +brokerage or more as shown. If price goes to 5016 and retraces, you can see that floor exit price is 5008, which is more than cost plus brokerage.
The calculator lets you enter the long or short price and their stop losses.
For a long trade, you enter the approximate high value after the trade has started and for a short trade, enter the approximate low value after the trade has commenced.
The calculator has four display lines:
Current price - shown in steps of 2 points.
Exit price for the first of the remaining lots.
Profit at the exit price.Floor price - If current price reaches the level as shown in the column, you will exit all multi lots at the floor price shown here, if the price retraces from current price.
The calculator does the following, lets say we enter a long trade at 5000.
The maximum price is 5014 and price retraces. You exit at stop loss of 4990 for lot 1. and at cost for lot 2 and more.
The maximum price is 5018 and price retraces. You can exit lot 1 at 9 points on the retracement and lot 2 and more at cost+brokerage.
The maximum price is 5020-5029. Lot 1 exits at 5020 and lots 2 and more can exit at 5010-5015. See the exact prices in the calculator for different current prices.
The maximum price is 5030-5040. Lot 2 exits at 5030 and lots 3 and more can exit at 5020-5035. See the exact prices in the calculator for different current prices.
See the picture below to understand.
So the steps to use the calculator are. Enter the prices for your trade and the current high price and stop loss levels given to you.
The first lot that you hold will always follow the exits shown in the Exit price line. See what I mean by this.
Exit price is the exit for the first lot that you are holding. If you are holding 3 lots, then till the lot 1 exits at 5020 in a long trade, lots 2 and 3 are the 2nd and third lots. Once lot 1 exits, then lot 2 is now the new lot 2 and lot 3 is the new lot 2. The new lot 1 will follow the exit price line rules till it exits at a target or lower.
So, if the price goes to 5028 and retraces back, you can exit at 5020 or in the worst case the floor price which is 5014. So that if you dont catch the 5020 exit, you at least get 14 points profit for the remaining lots. Lot 2 (previously lot 3) also exits at this price.
From 5002-5010, lot 1 will exit at the Stop loss price, 4980 as shown.
However, lots 2 and more will always exit at cost or cost +brokerage or more as shown. If price goes to 5016 and retraces, you can see that floor exit price is 5008, which is more than cost plus brokerage.
| nifty_trading_calculator.xlsx |
