They all can’t be just coincidences.
⚠️ Important Points to Understand
• It’s 100% true that the energy contained in your fingernail is almost equivalent to that of a small nuclear bomb. However, according to modern science, there is currently no known way to convert mass entirely into usable energy. But science has repeatedly shown us that what seems impossible or unproven today can become a scientific fact tomorrow when someone discovers a way to demonstrate it.
• I said that vibrations can originate from a zero-frequency source. In reality, vibrations can originate from various sources. What I actually meant was that a meaningful vibration, like the kind that makes life on Earth possible, requires a zero point where the net force and net displacement are zero. Without this zero point anchoring the wave, the vibration would have no stable reference point and would simply propagate outward indefinitely, like a particle flying off into infinity.
@BJP4India Hum to aapke sath khadde hai lekin kya aap log humare sath hai?
Agar hai sath aap log and iss desh ki and desh ki economy plus indian rupee ki chintaa hai to STT and LTCG hatao
Its day time loot and robbery done by you guys its totally unfair
Abolish STT & LTCG for better bharat
How to Survive a Market Correction.
I wrote this 4 years ago but it's still relevant today.
Hi everyone,
With the market in correction, I thought I'd discuss five things you should be doing during this time to set yourself up for success when the next uptrend comes along. Corrections are a natural part of the market cycle and will create fantastic opportunities down the line. We just have to be ready.
1. Stay optimistic and flexible.
Corrections are a volatile and frightening occurrence for new investors and traders. However, they are common and a natural part of the stock market cycle. The important thing is to stay calm and follow your investing or trading plan.
If you are an investor and use DCA, your timeframe and strategy depend on you carrying on with business as usual.
As a trend follower and trader, you want to follow your risk management system and protect yourself during volatile and corrective periods by exiting when the trend changes.
Personally, I turn to mostly cash when the market breaks the 21 EMA and 50 SMA, market leadership breaks down, and we see other signs of institutional distribution such as breakouts failing.
The key is to stay calm and follow your process objectively.
It is also important to stay optimistic and to remember that corrections set up the best opportunities in the market. The deeper the correction, the better.
The depth of the March 2020 correction facilitated a fantastic year for growth traders. As the market rebounded from a 30% correction, many growth names rose 200%, 300%, even 500%. When a correction occurs, stay optimistic and think about the amazing new leaders that will rise from the ashes.
Zoom was a great example of correction growth in 2020. It showed RS early on in the correction and went on a fantastic run of over 300% once the market pressure lifted.
Additionally, it is important to stay flexible during a correction. Market conditions can change sharply, and we have to be ready when we identify positive character changes such as follow-through days.
Keep following your market routines and stay on top of potential leaders that show accumulation signs during the market decline. This homework will serve you well when the uptrend begins. The market trend can shift in just a matter of days, so you need to be ready with a buy list when we see groups shape up and the indexes follow through.
2. Protect mental and financial capital.
During a correction, it's very important that you protect both your mental and financial capital. As traders, we have to accept that sometimes the absolute best thing we can do is sit on our hands and do nothing. No strategy works 100% of the time, and if you employ a trend-following strategy similar to CANSLIM, you need to understand that choppy and corrective markets will cause paper cut after paper cut if you try to get involved before a true uptrend emerges.
This gradual drawdown will not only cut into your account balance but will also leave you disheartened and unwilling to act when the trend actually changes. You have to recognize that your trading style has its own optimal environment.
For me, this is often when the QQQ and growth-focused ETFs like the IWO are trending above rising 21 EMAs. If it is not your optimal environment, then you must realize that the probabilities are stacked against you and you are trading merely for action instead of wealth. Know what your environment looks like in terms of the action of the indexes as well as setups and leadership stocks.
In addition to this, don't feel pressured to change your style during downtrends in hopes of making money all the time. It is difficult enough to become an excellent investor, position trader, swing trader, or day trader, and even more difficult to change timeframes and adapt quickly. Have patience; your environment will come around again. Perhaps when you have years of experience in one style, you can slowly work on other trading skills. However, the best traders I know are specialists, often in only one trading methodology and even one setup. Before you take a trade, ask yourself: is the deck stacked with you or against you? Is this setup and environment similar to what made you big money in the past? If so, then consider the trade. If not, then think long and hard before putting your money to work.
When the environment is not right for your style, it is best to take a step back from the markets, prevent the frustration from forcing trades, and focus on other passions and hobbies.
3. Watch for character changes and new leaders.
Taking a step back does not mean you should ignore the market entirely. You want to keep doing your weekly and daily routines to ensure you are keeping tabs on promising ideas that appear to be under accumulation.
Watch for stocks that are bucking the downtrend, ideally those that form the right sides of bases even as the market continues to decline. The relative strength line can be key here. If you see a stock with a rising relative strength line, and even better, a stock with a relative strength line making new highs as the market is correcting, that stock is screaming at you that it could be a leader.
Stocks showing significant relative strength are what we refer to as beach balls underwater. These are stocks under significant accumulation by institutions who are using the correction as a time to rebalance their portfolios into their highest-conviction ideas. These types of stocks most likely have fantastic stories, earnings and/or sales growth, and increasing fund ownership.
For Position traders, stocks that show RS and are breaking out of sound bases before or just as the market is bottoming and following through should be the first stocks you buy and test the health of the market with.
4. Read books and study.
This goes hand in hand with protecting your mental capital. Instead of forcing trades when the environment is not favorable for your trading style, read books, watch videos, and study a setup or your own trading data to identify areas of improvement.
Book recommendations:
The Trader's Handbook: https://t.co/OZa5nbwvOK
How I Made $2,000,000 in the Stock Market, Nicolas Darvas: https://t.co/28hHA0gGge
How to Make Money in Stocks: https://t.co/c437W70WWt
Trade Like a Stock Market Wizard: https://t.co/s5PylTrdP6
Think and Trade Like a Champion: https://t.co/9WHJ31kmfb
Mindset Secrets for Success: https://t.co/BDp3gySsaW
Momentum Masters: https://t.co/PY1QSfTMGR
How to Trade in Stocks: https://t.co/H1aS2OIYNj
Reminiscences of a Stock Operator: https://t.co/sb2EpTuyIS
Trading in the Zone: https://t.co/VAOZIPoZ5x
The Mental Game of Trading: https://t.co/ujIpxUeChT
Market Wizards: https://t.co/3flTiO6xTl
The New Market Wizards: https://t.co/EIuuFOp70D
Video recommendations:
There are many great videos out there on trading, but I'll humbly recommend the TraderLion Podcast, which feature market participants with many different timeframes, from investors all the way to day traders.
https://t.co/T7DAinAsJQ
I'd also recommend the Trader's Handbook Webinar Series:
https://t.co/7bYXTB8grW
Do a study:
Study earnings gap-ups, study what factors contribute to a successful base breakout, and study the charts of the best-performing stocks of the past three years. You will learn new techniques and gain experience that will serve you well in future markets.
5. Take a step back and do other hobbies.
Lastly, take the time you usually spend watching positions carefully and go out and spend more time with friends and family doing things you enjoy. This could be golf, chess, hiking, cooking, whatever you are most passionate about.
For me, I've recently taken up bouldering, which I'm really enjoying. It feels great to push yourself, learn new things, and see hard work pay off. Go enjoy your hobbies and try to get a full mental reset so that when the market uptrend resumes, you will come back refreshed and ready to take advantage of it.
Key Takeaways
Your main takeaway from this article should be that corrections are a natural part of the stock market and create fantastic opportunities. The key is to protect your mental and financial capital and be ready when the next uptrend resumes. Spend time doing other things you love, and study to become a better trader.
Sometimes the best thing for us to do is take a step back, go fishing, and come back refreshed.
I hope you enjoyed this! Please share this article on Twitter or with a friend if you think it would help them.
Take care!
-Richard
Dennis Gartman’s 22 “Rules of Trading
1. Never, under any circumstance add to a losing position.... ever! Nothing more need
be said; to do otherwise will eventually and absolutely lead to ruin!
2. Trade like a mercenary guerrilla. We must fight on the winning side and be willing
to change sides readily when one side has gained the upper hand.
3. Capital comes in two varieties: Mental and that which is in your pocket or account.
Of the two types of capital, the mental is the more important and expensive of the
two. Holding to losing positions costs measurable sums of actual capital, but it
costs immeasurable sums of mental capital.
4. The objective is not to buy low and sell high, but to buy high and to sell higher. We
can never know what price is "low." Nor can we know what price is "high." Always
remember that sugar once fell from $1.25/lb to 2 cent/lb and seemed "cheap" many
times along the way.
5. In bull markets we can only be long or neutral, and in bear markets we can only be
short or neutral. That may seem self-evident; it is not, and it is a lesson learned too
late by far too many.
6. "Markets can remain illogical longer than you or I can remain solvent," according
to our good friend, Dr. A. Gary Shilling. Illogic often reigns and markets are
enormously inefficient despite what the academics believe.
7. Sell markets that show the greatest weakness, and buy those that show the greatest
strength. Metaphorically, when bearish, throw your rocks into the wettest paper
sack, for they break most readily. In bull markets, we need to ride upon the
strongest winds... they shall carry us higher than shall lesser ones.
8. Try to trade the first day of a gap, for gaps usually indicate violent new action. We
have come to respect "gaps" in our nearly thirty years of watching markets; when
they happen (especially in stocks) they are usually very important.
9. Trading runs in cycles: some good; most bad. Trade large and aggressively when
trading well; trade small and modestly when trading poorly. In "good times," even
errors are profitable; in "bad times" even the most well researched trades go awry.
This is the nature of trading; accept it.
10. To trade successfully, think like a fundamentalist; trade like a technician. It is
imperative that we understand the fundamentals driving a trade, but also that we
understand the market's technicals. When we do, then, and only then, can we or
should we, trade.
11. Respect "outside reversals" after extended bull or bear runs. Reversal days on the
charts signal the final exhaustion of the bullish or bearish forces that drove the
market previously. Respect them, and respect even more "weekly" and "monthly,"
reversals.
12. Keep your technical systems simple. Complicated systems breed confusion;
simplicity breeds elegance.
13. Respect and embrace the very normal 50-62% retracements that take prices back
to major trends. If a trade is missed, wait patiently for the market to retrace. Far
more often than not, retracements happen... just as we are about to give up hope
that they shall not.
14. An understanding of mass psychology is often more important than an
understanding of economics. Markets are driven by human beings making human
errors and also making super-human insights.
15. Establish initial positions on strength in bull markets and on weakness in bear
markets. The first "addition" should also be added on strength as the market shows
the trend to be working. Henceforth, subsequent additions are to be added on
retracements.
16. Bear markets are more violent than are bull markets and so also are their
retracements.
17. Be patient with winning trades; be enormously impatient with losing trades.
Remember it is quite possible to make large sums trading/investing if we are
"right" only 30% of the time, as long as our losses are small and our profits are
large.
@NDTVProfit STT & LTCG must be abolished
Already individual is paying
Income tax
GST
StampDuty
Exchange transaction tax
STCG
Aren't these enough??
Why #STT & #LTCG
Its clearly daytime LOOT its not saving retailers but destroying them by taxing them more @FinMinIndia save indian economy
@BeingArun28 True I agree with you BIG BOOST
But what about STT & LTCG sir?
It must be abolished
Already individual is paying
Income tax
GST
StampDuty
Exchange transaction tax
STCG
Aren't these enough??
Why #STT & #LTCG
Its clearly daytime LOOT its not saving retailers but destroying them
@sambitswaraj I agree with you completely on this
But what about STT & LTCG sir?
It must be abolished
Already individual is paying
Income tax
GST
StampDuty
Exchange transaction tax
STCG
Aren't these enough??
Why #STT & #LTCG
Its clearly daytime LOOT its not saving retailers but destroying tem
@RajatJain@narendramodi What about STT & LTCG direct tax
It will be wrong if we say STT & LTCG as direct tax
As it is not even a tax its LOOT
Its unfair
Government must abolish STT and LTCG
@narendramodi Respected sir
I honour u very much
Havent seen leadership like yours but sir few financial policies need to be changed as its hurting the economy plus we are already going through global turbulence in this hard times STT & LTCG must be abolished as its not fair plus heavy burden