Tips from market gurus for becoming a smart professional trader

• It is the simultaneous use of past information and price behaviour, plus the current day’s market sentiment, that helps us more accurately estimate a particular move during the day.
• We will commit ourselves only when we see a majority of factors aligned in our favour, and when the path ahead looks clear. Once we make a commitment, we are at the mercy of the market and there is nothing we can then do to change its course.  
• market often achieves what it wants to in 3, 5 or 8 candles. If it also happens at important market hours, that’s still better. In such situations you can enter long at the next candle or after the next few candles when the price takes out the high of the rejection candle. The initial stop loss will be below the recent low, or below the entry candle.
• The best initial stop loss level would be either below the low of the entry candle in an uptrend, or above the high of the entry candle in a downtrend
• If you focus on the top line, namely managing your quality trades, instead of being enamoured of taking on too many trades, namely overtrading and wagon jumping, the bottom line of profits will be taken care of automatically
• We use floor pivots and swing pivots for determining location. We also use moving averages for trend analysis and location. We use candle study for trade management and timing
• When a setup appears ripe, don't hesitate. When the setup is under formation, show no desperation.

 

• Trade big on clearly trending days. Stay on the sidelines when the environment is not apt for a trade, whether because the range is too narrow or the moves too erratic. If you don't mess with the market every single day, and trade wisely during tradable days, you should be able to stay in the green at the end of the month even with limited instruments.
• Buy the rumor , sell the fact . On the day of actual result expect a fall for a rumor. If you have sold the rumor, buy the fact
• We do not suggest taking a trade based only on news. What we are saying is that the greater the number of factors in your favor, higher the chances of your success.
• A smart trader should not just keep himself safe, but must also find opportunities to profit. He should en-cash from the emotional frailty of others while keeping his own emotions under control. The day he fails to do so, he gets trapped
• The best way to trade is by being ready every morning with a background check on the markets as well as your favorite stocks. Study them, and arrive at your own views. Always come in to trade with a thesis, and then see whether the market approves or rejects your thesis. Be willing to take the market’s word as final, over and above your own opinion.
• Floor pivots , swing pivots determine location. Moving averages determine trend analysis and location. Candle study for trade management and timing. Always remember that the location comes first, and only then comes the entry signal by way of candle patterns.
• Trailing stop loss suits well when using moving averages 8MA  , 20MA lines
• Traders should always reserve the right to stand on the sidelines. Those traders that can learn to sit on their hands will profit by not losing. This is something that cannot be overstated. The difference between profitable traders and losing traders can usually be summed up by the number of unprofitable days and the severity of unprofitability on these days. Learn to eliminate those unprofitable days by only trading in the most favorable market conditions, and you will prosper in this game 
• If you had to choose only one price point that you could use as a reference for the day’s trading activity, it should be the point of control
• Simply understanding that the market has opened out of range and value will allow you to prepare for a potentially big day payday. Conversely, an opening print that occurs within range and value will allow you to play reversals at the extremes of the day’s trading range, or cause you to sit out the session entirely. Simply paying attention to important price-to-pivot relationships can immensely improve your trading
• It is your job to formulate a plan for trading each day using the information you have. Once you have formulated a plan, you then allow the market to prove or disprove the plan, which allows you to take the proper course of action. 
• Remember, a day that opens out of value and out of range offers the most risk, but with high risk also comes big opportunity. Only a few days per month will generate a move of this magnitude, but participating on these days will allow you to make as much, or more, money than the other days of the month combined.
• A high percentage of virgin levels are usually filled within days of their creation. Actually, I’ve read research that indicates that upwards of 80 percent of virgin levels are “filled” within a week of their creation, so marking these levels for a potential test in the future is a good habit to keep
• Being a trader means being prepared and anticipating what the market is
  likely to do. Any edge that you can capture that helps you toward this end is
  one that you should consider. By knowing in advance that the market may
  not move on a given day, or may move tremendously, you are allowing yourself to allocate your capital appropriately and judiciously
• There are several factors that I look for when I have my sights set on a third layer reversal trade: the current trend, the prior day’s price behavior, visual support or resistance in the vicinity, and price to pivot behavior
• I do not claim to know what the market will do at all times, but when the market falls into a familiar routine, it is my responsibility as a trader to quickly and accurately identify and diagnose the situation so that I may deploy my capital in the most responsible manner. Trading is about finding those familiar patterns in the market and capitalizing on the highest probability opportunities 
• Be aware, however, that the market only trends an average of 30 percent of the time, which means you must have the patience to wait for a confirmed trend in order play this type predictability in the market. The rest of the time is perfect for two-day pivot analysis, pivot width analysis, and golf.
• Weekly pivots inspire swing traders to buy or sell, monthly pivots offer a call to action to position traders, and the yearly pivots trigger investor participation. 
• It’s not the quantity of trades, but the quality of the setups and the amount of money you’re laying on the line when the stars finally do align. The multiple pivot hot zones ahead, combined with key signals, are the types of setups that can command a bigger bet.
• Remember, a well laid plan and confidence are the enemies of fear. Think of yourself as two people. First as a “planner” who develops good trades. Second, as an “executioner” whose job it is to execute the plans that have been laid out. Don’t empower the “executioner” to second guess the “planner.”
• “I just wait until there is money lying in the corner and all I have to do is go over there and pick it up. I do nothing in the meantime. In essence, by not wanting to trade, I have inadvertently transformed myself into a master of patience. By forcing myself to wait until there was a trade that appeared so compelling that I could not stand the thought of not taking it, I had vastly improved the odds. . . .” - James Rodgers.
• True basis for profits - Buy at areas where others will buy after you, and sell at areas where others will sell after you. 
• The most effective analysis is not analysis of price, but rather analysis of trader decisions which drive the price. 

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