Sunil
03-10-2009, 01:24 PM
Hello everybody.
Enough and more information is available about technical analysis, indicators, chart patterns, trade setups etc. etc.
But surprisingly, very few traders look outside the box and strive to understand the other factors which go into the trading process – the psychology of trading, money management….and a “Trading Plan”.
But let me first introduce myself.
My name is Sunil Mangwani & I have been trading the forex markets since the last 6 years and devise simple trading strategies based on my vast knowledge and in-depth study in the field of technical analysis.
But in my years of trading and my subsequent experience in teaching technical analysis and mentoring, I realized that applying technical analysis is not enough to be a successful trader.
One can be successful in this exciting, fulfilling and yet demanding business, if and only if, one has a definite plan on how to approach the market.
If a trader has an iron clad “Trading Plan”, it automatically puts the trader into the top 15% bracket of the winners.
It has always been my endeavor to put the traders on the right path, and the underlying principle & the most important factor that I concentrate on, is the concept of 3M’s – Money, Mind & Method….in that order.
If one were to distribute "Trading" on a scale of 1 to 10, then
Money - Money Management would account for 50% of the trading process;
Mind - Psychology of trading would account for 30% of the trading process;
Method - Technical analysis would account for only 20% of the trading process.
Unfortunately, since the entire trading plan is based on ‘Method’, as a trader would decide on a trade based on analysis he/she does on the charts, the other factors are ignored.
In this forum, I will be presenting my thoughts on the concepts of Trading Plan, Money Management & the Psychology of Trading....besides applying the technical analysis for our trades.
My intention is to make the traders realize the importance of these topics
This does not, in any way, diminish the importance of technical analysis, since the foundation of a “Trading Plan” has to be a technical strategy.
We will, of course, be talking about trades, because we are here to trade and trade successfully.
But I will be giving more weight to the “other” factors to create a larger awareness.
Every day, every moment, the markets throw us different & unique situations and if one learns from these situations, it paves the way to success.
I would appreciate your comments and suggestions for this….and of course, bouquets & brickbats are welcome ;)
Sunil Mangwani
Enough and more information is available about technical analysis, indicators, chart patterns, trade setups etc. etc.
But surprisingly, very few traders look outside the box and strive to understand the other factors which go into the trading process – the psychology of trading, money management….and a “Trading Plan”.
But let me first introduce myself.
My name is Sunil Mangwani & I have been trading the forex markets since the last 6 years and devise simple trading strategies based on my vast knowledge and in-depth study in the field of technical analysis.
But in my years of trading and my subsequent experience in teaching technical analysis and mentoring, I realized that applying technical analysis is not enough to be a successful trader.
One can be successful in this exciting, fulfilling and yet demanding business, if and only if, one has a definite plan on how to approach the market.
If a trader has an iron clad “Trading Plan”, it automatically puts the trader into the top 15% bracket of the winners.
It has always been my endeavor to put the traders on the right path, and the underlying principle & the most important factor that I concentrate on, is the concept of 3M’s – Money, Mind & Method….in that order.
If one were to distribute "Trading" on a scale of 1 to 10, then
Money - Money Management would account for 50% of the trading process;
Mind - Psychology of trading would account for 30% of the trading process;
Method - Technical analysis would account for only 20% of the trading process.
Unfortunately, since the entire trading plan is based on ‘Method’, as a trader would decide on a trade based on analysis he/she does on the charts, the other factors are ignored.
In this forum, I will be presenting my thoughts on the concepts of Trading Plan, Money Management & the Psychology of Trading....besides applying the technical analysis for our trades.
My intention is to make the traders realize the importance of these topics
This does not, in any way, diminish the importance of technical analysis, since the foundation of a “Trading Plan” has to be a technical strategy.
We will, of course, be talking about trades, because we are here to trade and trade successfully.
But I will be giving more weight to the “other” factors to create a larger awareness.
Every day, every moment, the markets throw us different & unique situations and if one learns from these situations, it paves the way to success.
I would appreciate your comments and suggestions for this….and of course, bouquets & brickbats are welcome ;)
Sunil Mangwani