Some Of The Most Successful Traders In The World And The Money They Made

Below are some of the great persons who proved that we can also make tremendous amount of money from trading and it's not that one can become wealthy from long-term investing only.

So, below are some of the most successful traders and the kind of money the made

Jesse Livermore (Considered by many to be the greatest stock market operator ever. Made 100 million dollars in 1929 stock market crash. Made several other multi-million dollar fortunes in his trading career).

Richard Dennis (Turned 400 dollars into a fortune of at least 200 million dollars by using his remarkable trading skills).

-Ed Seykota (One of the greatest traders of all time. Turned 5000 dollars into an incredible 15 million dollars or more).

-Paul Tudor Jones (An amazingly consistent and successful trader. In 2006, earned a whopping 750 million dollars).

Bernard Baruch (Fantastic trader who earned ten’s of millions of dollars in the first part of the 20th century).

- Michael Marcus (In a ten-year period, he multipled his company account by an incredible 2500 times).

-Bruce Kovner (One of the world’s largest traders in the 1980′s. Made profits of over 300 million trading for himself).

-Randy McKay (Turned $2000 into $70,000 his first year of trading. Went on to double digit million dollar gains).

Practical Lessons For Successful Stock Trading

How to Find Your Trading Tendency

* How you trade after you’ve made money versus after you’ve lost money:  Do you trade more?  Larger?  Do you trade differently based on recent P/L?  Do you become risk averse after recent losses?  Does that affect your future P/L?

*  How do you trade when you’re taking more risk versus less risk?  Does different size/risk exposure cause you to trade differently?  Are you actually making more money when you’re taking more risk? 

*  What kinds of markets and market patterns provide you with your greatest profits?  Losses?  Do you trade selectively to maximize your best opportunities?  Do you overtrade markets that are not ones providing you with opportunities?

*  What is your ratio of winning to losing trades?  What is the ratio of the size of average winners to the size of average losers?  How successful have you been in finding large winners?  In preventing large losers?

Many times, our greatest biases and psychological mistakes come through when we thoroughly review performance.  The decision to not review performance is perhaps traders’ greatest bias blind spot.

All above points are too much important for success in trading.

One must contemplate and get answers to all the questions above and find reasons as well and take necessary steps to improve.

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5 Types of Mindset And Importance For Traders - Successful Mindset For Traders

5 Types of Mindset And Importance For Traders - Successful Mindset For Traders 

Create a better mindset for success in trading

1) An open mindset – Traders succeed when they see things that others don’t. Sometimes those are overarching themes and trends; sometimes they are short-term patterns in market behavior. To see things differently, we need a mind that is open to new and different information and open to shifts in market behavior.

2) A quiet mindset – Minds filled with noise can’t process new information. When we’re focused on ourselves and our profits/losses, we’re no longer focused on markets. We can’t exercise self-control in our actions if we are not able to sustain control over our thought processes.

3) A constructive mindset – Losses happen. We miss opportunities. The great trader learns from mistakes and embraces the lessons from drawdowns. If every day brings wins from trading or wins from learning, there is always something of value to be taken from each day.

4) A positive mindset – It’s because we cannot count upon our profits and losses to make us happy that we need to lead a fulfilling life outside of trading. A life that is filled with meaningful activities, fun activities, activities that bring us close to others, and activities that give us energy is most likely to provide us with the emotional fuel needed to power through challenging market times.

5) An action mindset – All the best ideas and intentions will get us nowhere if we aren’t prepared to act upon them. The action mindset is one focused on plans, translating excellent ideas into excellent risk/reward opportunities. Preparation is idea-focused, but also execution-focused. It is as important to work on our implementation of ideas as our generation of them.

 Lessons for traders, psychological aspects of trading, successful trader psychology  

China Faces Banking Crisis After $2 Trillion Mountain of Toxic Debt Exposed

According to the agency’s Tuesday report, up to 21 percent of China’s loan pool is “non-performing loans,” (NPLs) which means debtors are struggling to make the repayments. At the same time, only 1.8 percent of loans were classified as bad ones by state authorities last June.

Moreover, Beijing’s reliance on credit growth for providing near-term GDP increase could exacerbate existing problems, Fitch stressed, as it “will increase the size of asset-quality problems in the financial system.” “There seems a high likelihood that banks’ NPL ratios will continue rising over the medium term, in light of this discrepancy,” the report stated. “There are already signs of stress, most obviously in the increased frequency with which banks are writing off or offloading loans, such as those to asset-management companies.” As of the late 2015, Chinese debt made up 243 percent of the national GDP with a prospect of reaching 269 percent on a condition of debt continuing to grow. The latest statistical data also revealed that loans will be increasing by 13 percent annually, surpassing the pace of the GDP growth that stands at 6.5 percent as of now.

Liquidation of bad loans would cost China some $2.1 trillion, if the country’s financial sector moved to address the problem immediately, the report assessed. In longer perspective, however, dealing with the growing economic pressure would require the government taking some drastic measures such as writing off debts or expanding repayment terms.

Still, some experts are skeptical about the Fitch’s assessments. Senior economist at Commerzbank’s Singapore Hao Zhou said that the problems of Chinese financial system are caused by the shadow banking sector and aren’t big enough to plunge the economy. “The size [of shadow banking] is about 12 to 15 per cent of the overall banking [industry] and most of the shadow banking assets are related to bonds and cash products, which is seen as a low-risk product,” he said in an interview with City A.M.

Why traders lose money? Take time to do your HOMEWORK before you start trading/investing or select an advisor

Take time to do your HOMEWORK before you start trading/investing or select an advisor

Why traders lose money?

Selecting right advisor for stock market

Do your HOMEWORK before you start trading or select an advisor

Yes, this has been the problem with most if not everyone.

A person wants to trade/invest in the market and for that he wants some professional/expert advise.

So, he goes on Google and search for the same. In result they get a lot of advertisement sites as well some other results for the same.

Now, the person opens a bunch of the sites from the result and surfs them not giving proper time to go inside all pages and read it fully and also not giving time to compare.

Also, a big mistake made by him is register on the site for free trial, without knowing what it free trial? Why it is given out? What will he get out of it? Does it satisfy his needs for what he was looking for in the first place? Is it the right thing to do? Does any valuable thing come in free? Can he judge the performace of anyone for next one month based on 1 day advice? (read full article on free trials scam here http://meghainvestments.blogspot.in/2012/07/trap-of-trials-read-why-free-trials-is.html )

So, he doesn’t do this and simply registers. Why, because of lack of awareness of the above questions as well as the deep subconscious lure of ‘free things’ in human nature. Besides, it’s fast, as the ‘unscrupulous site’ is only asking for name and mobile number most of the time which takes few seconds to fill up (and they know it).

So, the point is you should not be impatience in starting your trading and take your time to check out the complete site and try to figure out below questions by searching whole site, comparing it with other sites and its services on several points.

Below article can help you with that –

http://meghainvestments.blogspot.in/2015/07/proof-why-we-are-better-than-most-of.html

http://meghainvestments.blogspot.in/2016/07/why-we-are-different-why-choose-megha.html  

Also TALK TO THEM. You ask many questions and continue your discussion for many days. This is also a very good point to understand the real character of the advisory firm and its genuineness. Ask them questions about their methods and so on. Ask them why 10 points why you should trust them with your money. (we have this big notice on our site saying discuss with us before selecting services)

See, just can’t risk your thousands or lacs Rs. by opening websites in google results and registering in them for free oneday trial. Is this what you want really? So, TAKE YOUR TIME and DO YOUR HOMEWORK before your trade or invest( learn some most basic things about trading- available on google only- devote 1 week or 2 week to find good advisor and selecting and scrutinizing them). Nothing is running away.

It’s your hard earned money (even if it’s not hard earned, you wouldn’t want to just throw it away!)

Why are you even in the Stock Market? How Do You Literally Get Lost In Market Without Knowing

Why are you even in the Stock Market? Reasons of your NOT SUCCEEDING in markets

Why are you trading/investing in stock market?

How to select right advisor for your investing trading needs?

Yes. You might think this is very obvious question. Of course to earn money.

But just repeat the question in your mind, to yourself, why am I even in the stock market? What am I doing? What do I want to achieve out of it? Why am I trading or Why do I want to trade?

The entire point we want to make here is that we have seen, over talking to thousands of persons and serving hundreds of clients that they literally are not FULLY AWARE of their actual purpose of being in stock market, except this vague obvious idea that ‘it will earn them money or to make money’

This is problem one and it gets worse. At least, at this stage they have this consciousness of making money, although they didn’t have full understanding of their goals, objectives and plan for entering market or starting trading and investing.

Now, after they are in market, this thing gets worse in the form of them completely forgetting WHY THEY WERE IN THE MARKET IN THE FIRST PLACE?

Yes, this happens. Imagine you setting out for a trip to, say Ladakh and on the way visiting Delhi, Simla and so on and your time and expenses are running out. You get immersed in destinations on the way that you forget to focus on getting to Ladakh. Although, this is not an exact illustration, I hope you understand what I want to say.

Because of this, after sometime in market, the person starts to trade and invest haphardly, tries to get in and out of stocks, takes advice of any Tom, Dick, Harry and Tanyas, or Sonias of xyZ stock advisory who calls him, keeps registering on anonymous websites offering literally 90-99% accurate trade tips…and so on….

…This is what we mean by “completely forgetting WHY THEY WERE IN THE MARKET IN THE FIRST PLACE?”

This happens because of one or many of the reasons below,

1.      complete dumbness (sorry) of the investor about how the market works and commonsense of purchasing any service or professional advise

2.      Genuine non-awareness of the way market works, how to select and not select a good advisor, non awareness of unscrupulous malpracticing businesses in this field of stock consulting etc.

3.      Initial losses in the market kills the temperament, moral, tempo and mood of the person which disorients him from prudent thinking and acting regarding all these

You will find the below pop up on our site on home page reminding every visitor what are basic purposes of them being in the market which I also put below, (comprise both investing and trading)

1. You want to generate extra/side income source.

2. You want to build a long term portfolio for your family and kids.

3. You want to increase your standard of living.

4. You want to participate and benefit from the Indian economy and growing stock markets.

5. You have a certain risk capital and you want to try it on stock/commodity trading.

6. You are a fulltime trader or want to be a fulltime trader.

7. You are broker or stock market professional.

This thing actually makes them commit lots of other mistakes which ultimately leads them into decisions which in turn give them further failure in trading and investing.

So, the whole point is you must not GET DISORIENTED and let your subconscious mind take over you.

Find other useful articles on our ‘beware investors’ series below,

http://meghainvestments.blogspot.in/search/label/beware%20investors

Market cap of BSE companies at Rs 110 lakh crore (2016)

Market cap of BSE companies at Rs 110 lakh crore (2016)

Boosted by a strong stock market show today, the total market capitalisation (m-cap) of BSE-listed companies surged to an all-time high of Rs 110.7 lakh crore ($1.64 trillion). Following the sharp rally in stocks, investor wealth rose by Rs 1,39,948 crore to Rs 1,10,70,610 crore.

TCS is the most valued Indian company with a market valuation of Rs 5,02,202.97 crore, followed by Reliance Indu-stries Ltd (Rs 3,45,650.10 crore), HDFC Bank (Rs 3,22,240.25 crore), ITC (Rs 3,11,383.66 crore) and Infosys (Rs 2,39,111.94 crore).

Among the 30 Sensex companies, 29 scrips ended higher, led by Asian Paints and Bajaj Auto. Bharti Airtel fell by 2.82 per cent.

BSE is among the world’s 10 largest exchanges in terms of market value, while it is the biggest in terms of number of firms listed on its platform. Over 2,900 companies trade on BSE. On the exch-ange, 1,638 scrips adv-anced, while 1,073 dec-lined and 216 remained unchanged.

Mark Douglas: 7 Keys to Trading in the Zone

Mark Douglas: 7 Keys to Trading in the Zone

“I am a consistent winner because:

1. I objectively define my edges.

2. I predefine the risk of every trade.

3. I completely accept the risk or I am willing to let go of the trade.

4. I act on my edges without reservation or hesitation.

5. I pay myself as the market makes money available to me.

6. I continually monitor my susceptibility for making errors.

7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.”

DII (Mutual Funds etc.) Ownership In Stocks At Six Year High

The shareholding of domestic institutional investors (mutual funds, insurance companies etc.) (DIIs) in listed companies has risen to a six-year high, following an increase of 10 per cent in the value of their holdings, despite flat markets.

At the end of the June quarter, DII shareholding in National Stock Exchange-listed companies was 11.7 per cent, up nearly 100 basis points in 12 months, from data compiled by Prime Database. The value of their holdings touched a record high of Rs 11.74 lakh crore, a 12 per cent increase over the Rs 10.5 lakh crore at the end of the June 2015 quarter. The BSE 500 index remained flat in this period. 

By stock exchange data, DIIs had pumped nearly Rs 40,000 crore in the Indian markets in the four quarters ending June 2016. 

DIIs comprise domestic mutual funds, insurance companies and pension funds. The increase in DII ownership and value of their holdings is a positive sign for the Indian markets, largely dependent on foreign institutional investors (FIIs). 

The value of the latter FII holdings at the end of June was almost double that of DIIs, at Rs 20.1 crore. Their ownership stood at 20.1 per cent, making them the country’s largest non-promoter stakeholders. Within DIIs, state-owned Life Insurance Corporation of India (LIC) is one of the biggest investors. At the end of June, the value of its holding was Rs 4.6 lakh crore.

Some of the companies with high DII shareholding are Balmer Lawrie & Co (72.8 per cent), Gammon India (66.3), Consolidated Construction Consortium (56.4), IVRCL (52.6) and Monnet Ispat & Energy (50.1). During the June quarter, Bombay Rayon saw the highest increases in DII shareholding in percentage points, at 26.3. Sakthi Sugars (18.9 percentage point increase) and Rainbow Papers (11.45) were other companies which saw substantial increase.

For long term investment advisory services visit our website and find 5 different types of Services for Investors here at www.meghainvestments.com

Rakesh Jhunjhunwala’s portfolio grows 5.5 times in seven years, Some of the details of his stock holding and how it pared

Rakesh Jhunjhunwala’s portfolio grows 5.5 times in seven years, Some of the details of his stock holding and how it pared 

Top Individual Investors In India/Top Individual Investors In Indian Stock Markets

Rakesh Jhunjhunwala’s Stock Holdings/

 

Big Bull Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala held equities worth Rs 8,900 crore and remained the biggest 'individual public shareholders' on the Dalal Street, June quarter shareholding data showed.

The Jhunjhunwala couple, which owns shares in IT firm AptechBSE -3.12 %, drugmakers Aurobindo PharmaBSE 0.17 % and LupinBSE 0.45 % and banking and financial firms such as Deewan Housing and Karur Vysya BankBSE -0.43 %, among others, have seen the value of their cumulative  ..

Companies where the combined stakeholding of Jhunjhunwala and his better half has gone up include Tata MotorsBSE -1.01 % (DVR) (from nil a year ago to 3.43 per cent in Q1FY17), Intellect Design Arena (3.74 per cent to 5.94 per cent) and Escorts (from 8.14 per cent to 10.18 per cent).

The Jhunjhunwalas raised stake in Delta CorpBSE -0.24 % to 9.32 per cent in Q1 of FY17 from 7.80 per cent in Q1 of FY16. They also increased stake in Agro Tech Foods to 7.66 per cent at the end of June quarter from 6.88 per cent at the end of Q1 FY16.

However, the duo exited McNally Bharat EngineeringBSE 2.77 % and PolarisBSE -0.86 % Consultancy, the PRIME Database study revealed.

The Jhunjhunwalas owned 9.85 per cent stake in McNally BharatBSE 2.77 % and 4.74 per cent in Polaris Consulting at the end of Q1FY16.

As per norms, details of less than 1 per cent shareholding is not required to be published. The couple cut stake in VIP IndustriesBSE 0.96 % from 7.05 per cent to 3.69 per cent, Karur Vysya Bank from 2.9 per cent to 1.92 per cent and Autoline IndustriesBSE -0.74 % from 10.14 per cent to 9.46 per cent in the one year period.

The retail holding went up in 767 NSE-listed companies in last one year till the end of Q1FY17. The average increase in stock prices of these companies in the same period was 20 per cent.

On the flip side, share prices of 671 companies where retail holding fell in last one year have risen by 47 per cent on an average.

"This validates the often-used phrase that retail investors buy at peak and sell at lows," said Pranav Haldea, Managing Director at PRIME Database.

Retail holding in terms of value hit an all-time high of 8.68 per cent in June quarter.

For Stock Investing Services visit our website www.meghainvestments.com 

SEBI proposes new framework for algo trading, co-location, Good news for retail participants and importantly retail day traders

algo trading India, Automated trading India, Algo trading BSE NSE 

SEBI proposes new framework for algo trading, co-location =

To stop inequitable trading access to the exchanges, markets regulator Sebi today proposed a new framework for super-fast algorithmic trading and co-location facility, including by suggesting 'speed bumps' and separate queues for algo and non-algo trades.

To stop inequitable trading access to the exchanges, markets regulator SEBI today proposed a new framework for super-fast algorithmic trading and co-location facility, including by suggesting 'speed bumps' and separate queues for algo and non-algo trades. 

Algorithmic trading or 'algo' in market parlance refers to orders generated at a super-fast speed by use of advanced mathematical models that involve automated execution of trade, while co-location involves setting up servers on the exchange premises. 

The Securities and Exchange Board of India (SEBI) has proposed to introduce resting time for order, random delays and random speed bumps, separate queues for co-location and non-co-location orders for strengthening the regulatory framework for algo trading and Co-location facility. 

The regulators across the world are looking to find an effective solution for this. SEBI has sought public comments on the proposal till August 31 and final guidelines would be put in place after taking into account views of all the stakeholders. 

The speed bump mechanism involves introduction of randomised order processing delay of few milliseconds to orders. 

The move is expected "to discourage latency sensitive strategies as such delays would affect HFT (High Frequency Trade) but would not deter non-algo order flow for which delay in milliseconds is insignificant," SEBI said in a discussion paper. "The intent behind such mechanism is to nullify the latency advantage of co-located players to a large extent," it added. 

The regulator also plans to begin minimum resting time mechanism, wherein orders received by the stock exchange would not be allowed to be amended or cancelled before a specified amount of time -- 500 milliseconds is elapsed. 

Besides, it plans to eliminate 'fleeting orders' or orders that appear and then disappear within a short period of time. 

The regulator has proposed introduce separate queues and order-validation mechanism for co-lo orders and non-colo orders. "Orders from queues will be taken up in the order-book in round-robin fashion... the co-located participants would still be among the first to receive the market data feeds due to their proximity to the trading platforms of the exchange and this coupled with the capability to make trading decisions in fraction of seconds would still provide the co-located participants the ability to quickly react to such market data," SEBI noted.

Most Useful Rules For Trading, Must Follow Rules For Trading

MOST BASIC RULES FOR TRADING

RULES FOR SUCCESSFUL TRADING 

MOST IMPORTANT RULES FOR TRADING SUCCESS

1.     Always trade with an actual stoploss.

2.     Trade with adequate capital. Otherwise you can easily lose out early.

3.     Make a trading system of signals which determine your entry and exit. Don’t do it on your hunch or guesswork of market and stock moves. Test your trading system/rules until it proves itself wrong.

4.     Never trade on loan money.

5.     Never risk more than 5% of your trading margin on one single trade.

6.     Forget the result of your last trade; be it profit or loss. Every new trade is new game.

7.     Always keep your risk reward ratio above 1.5 or 2 or more.

8.     Never ever average your losing trades.

9.     Let your profitable trades run.

10. Stop trading/take break after consistent series of losses or profits.

11. Be completely clear why you are trading. Don’t trade for only money. Trading is a journey and not a destination. Trading is not a job, it is a business. Expect not to get paid for days, weeks, months and even for a full year as in business. Trade because you love it. Never trade for fun, excitement or kill the boredom.

12.If you are completely new, start with paper trading, but don’t remain in paper trading. If you are relatively old then start with smaller positions and increase your volume as you go ahead with development of your trading system and right trading mental attitude.

13.Remain emotionally detached and completely rational.

Don't Chase the ONE trade/ The ONE TRADE fallacy in trading

mistakes of trading, don't in trading,

To execute trades without making mental errors you have to be free of thinking that “this trade will be a winner”. The typical trader expects “this trade” to be a winner, or why would they take it, right? But, you can’t think this way if you want to make consistent money. Once you start expecting each trade to win, you become emotionally attached to it, when as you should know by now, it is not any ONE trade that matters, but the overall series of trades and your ability to remain disciplined over that series that matters.