There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Saturday, June 30, 2012

Reading: Secret Methods

There are so many trading offers out there that supposedly have “little-known” or “secret formulas” for profitable stock trades. After 18 years of trading and reading over 200 books on the subject I can tell you that even the best trading "secrets" are just old concepts viewed from another perspective.

Here’s the most profitable secret you need to know…NO trading method that is supposedly “secret” or “little-known” will work. You must come to understand that the very premise of making a profit in the markets is to enter trades (long or short) that other profitable traders are trading.

Now think about this…If it’s “secret” then very few traders are using it. Doesn't it take more than a few traders to move a stock price? The aggressiveness of buyers or sellers in a single direction is what causes a stock to rally or decline in the first place. This concept is so simple yet so many traders are suckered into thinking that there is some method, system, technique or indicator out there that no one else knows about and will give them the “winning edge.

You don’t want to be a lone wolf with a winning edge in trading; you want to be part of the pack on the right side of the price moves. It is, always has been, and always will be that plain and simple.

 Kevin Brown


  1. your post reminded me of something i read somewhere....the secret to become a winning trader is to have three Bs.....bucks,brains and balls.....bucks - the capital and the sense to preserve it.....brains - to figure out a plan to lose small and win big.....and balls - to have the discipline to stick to your plan and stay the course !

  2. Ananth

    Yes, you are right
    I have read it
    It is from "Beginner's Guide to Day Trading Online"
    By Toni Turner


  3. 18 years !! Its 1.5 years that I stepped in this field ..I have a Loooong way to go . Since Morning looking at the weakness in prices , I wanted to go short as it is not able to sustain PDH and DO. But since the trend is up also has not broken the ORB low yet , I have not sold yet.

  4. Smita

    I think you thought I have 18 years of experience in day trading.In fact I started in January 2011 and traded less than 120 days
    I just reproduced an article by Kevin Brown written 5 years back and I have acknowledged it.

    Did you go long on BOF of IR Low ?


  5. No ST , I did not take the long trade . I did short at when prices could not move past 5282 sensing the weakness . and covered that short when prices could not go below the 5270 for some time . Now that I see your post I feel , how could I miss it .

  6. smita

    Are you trading Nifty Futures looking at Nifty Spot chart ?
    Subscribe to a good charting service


  7. Rajesh,

    Thanks for the article, your memory and putting things in perspective !

    You are an EXCELLENT teacher who guides the seeker to their GOALS !

    With kind regards,


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