38 steps to becoming a trader

38 steps to becoming a trader

They are as follows

:1. We accumulate information - buying books, going to seminars and researching.

2. We begin to trade with our 'new' knowledge.

3. We consistently 'donate' and then realise we may need more knowledge or information.

4. We accumulate more information.

5. We switch the commodities we are currently following.

6. We go back into the market and trade with our 'updated' knowledge.

7. We get 'beat up' again and begin to lose some of our confidence. Fear starts setting in.

8. We start to listen to 'outside news' and to other traders.

9. We go back into the market and continue to 'donate'.10. We switch commodities again.

11. We search for more information.

12. We go back into the market and start to see a little progress.

13. We get 'over-confident' and the market humbles us.

14. We start to understand that trading successfully is going to take more time and more knowledge than we anticipated.MOST PEOPLE WILL GIVE UP AT THIS POINT, AS THEY REALISE WORK IS INVOLVED.

15. We get serious and start concentrating on learning a 'real' methodology.

16. We trade our methodology with some success, but realise that something is missing.

17. We begin to understand the need for having rules to apply our methodology.

18. We take a sabbatical from trading to develop and research our trading rules.

19. We start trading again, this time with rules and find some success, but over all we still hesitate when we execute.

20. We add, subtract and modify rules as we see a need to be more proficient with our rules.

21. We feel we are very close to crossing that threshold of successful trading.

22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.

23. We continue to trade and become more proficient with our methodology and our rules.

24. As we trade we still have a tendency to violate our rules and our results are still erratic.

25. We know we are close.

26. We go back and research our rules.

27. We build the confidence in our rules and go back into the market and trade.

28. Our trading results are getting better, but we are still hesitating in executing our rules.

29. We now see the importance of following our rules as we see the results of our trades when we don't follow the rules.

30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear) and we begin to work on knowing ourselves better.

31. We continue to trade and the market teaches us more and more about ourselves.

32. We master our methodology and our trading rules.

33. We begin to consistently make money.

34. We get a little over-confident and the market humbles us.

35. We continue to learn our lessons.

36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading accountcontinues to grow as we increase our contract size.

37. We are making more money than we ever dreamed possible.

38. We go on with our lives and accomplish many of the goals we had always dreamed of.

Good Taste: Top 5 Foods to Prevent Bad Breath

Good Taste: Top 5 Foods to Prevent Bad Breath
by Marin Gazzaniga for MSN Health & Fitness

Bad breath results from two key issues: oral hygiene and gastrointestinal health.
Basically this means that breath odors originate not just inside the mouth but
also from your digestive tract. The culprit in both cases is largely bacteria.
Doctors will tell you that if you have bad breath, you should first make sure
you are eating right (getting a balanced diet of protein, carbs, lots of fruits and
veggies and plenty of fluids to keep the GI tract healthy) and brushing and
flossing after every meal. But that still doesn’t mean you might not be
offending your friends and co-workers after lunch at the new Italian place. Here
are some things you can ingest (or chew) that can help.

1. Chew on this. Move over parsley, there are some new halitosis-fighting
herbs in town. “Coriander, spearmint, tarragon, eucalyptus, rosemary and
cardamom are all good for fighting bad breath,” says Dr. Christine Gerbstadt,
who has lectured on oral health. You can chew on fresh herbs or make tonics
by steeping them in hot water (as a tea). These herbs make an excellent
digestive as well—doubling the benefits of ending a meal this way.

2. Get some active culture. No, not Cirque de Soleil, but yogurt. A recent
study found that a serving of yogurt each day reduces the level of odor-causing
hydrogen sulfide in the mouth. Apparently it also cuts back on bacteria in the
mouth—plaque and gum disease were reduced in the study’s yogurt eaters as
well. Plus, the American Dietetic Association (ADA) recommends getting
enough vitamin D from yogurt, cheese and milk if you’re worried about
halitosis because this vitamin creates an inhospitable environment for bacteria
growth. Be sure to get the kind of yogurt with active cultures—not overly
processed or sugar-added varieties.

3. Crunchy types. Apples, carrots, celery—basically any fiber-rich fruit or
Vegetable is your friend when it comes to fighting halitosis. “Inside your
Mouth, plaque build-up causes odors,” explains Cynthia Sass, ADA
Spokeswoman and registered dietician. “Eating foods that increase saliva
Production keep the mouth moist—and rinsed out Also, many curbs and
Proteins can get stuck in your teeth—even healthy foods like whole grain cereal
or chicken breast.” So follow a meal with a Granny Smith (feel the saliva kick
in at the mention of it?) to cleanse the mouth.

4. Masking techniques. Sugarless gum shouldn’t replace brushing your teeth
After a meal, but in a pinch it can freshen breath (masking odors) and is another
Way to increase saliva production to rinse away plaque and bacteria. Mints can
Mask as well, but only briefly—and go for sugarless. Sugar creates plaque, and
no one wants a mint that makes breath worse.

5. High C’s. Eating berries, citrus fruits, melons and other vitamin C-rich foods
Create an inhospitable environment for bacteria growth. A diet rich in vitamin C is also is important for preventing gum disease and gingivitis—both major
Causes of halitosis. Get your C in foods, not supplements, which can cause
Gastrointestinal upset in some, according to Sass, and exacerbate bad breath.

how to calculate sensex

How to calculate BSE SENSEX?
This article explains how the value of the “BSE Sensex” or “sensitive index” is calculated. If you are not sure what we mean by the Sensex or what the Sensex is all about, you can find this out by reading our “How to make money in the stock market?” article.The Sensex has a very important function. The Sensex is supposed to be an indicator of the stocks in the BSE. It is supposed to show whether the stocks are generally going up, or generally going down. To show this accurately, the Sensex is calculated taking into consideration stock prices of 30 different BSE listed companies. It is calculated using the “free-float market capitalization” method. This is a world wide accepted method as one of the best methods for calculating a stock market index. Please note: The method used for calculating the Sensex and the 30 companies that are taken into consideration are changed from time to time. This is done to make the Sensex an accurate index and so that it represents the BSE stocks properly. To really understand how the Sensex is calculated, you simply need to understand what the term “free-float market capitalization” means. (As we said earlier, the Sensex is calculated on basis of the “free-float market capitalization” method) But, before we understand what “free-float market capitalization” means, you first need to understand what “market capitalization” means.




What is "market capitalization"?

You probably think that you have never heard of the term “market capitalization” before. You have! When you are talking about “mid-cap”, “small-cap” and “large-cap” stocks, you are talking about market capitalization!Market cap or market capitalization is simply the worth of a company in terms of it’s shares! To put it in a simple way, if you were to buy all the shares of a particular company, what is the amount you would have to pay? That amount is called the “market capitalization”! To calculate the market cap of a particular company, simply multiply the “current share price” by the “number of shares issued by the company”! Just to give you an idea, ONGC, has a market cap of “Rs.170,705.21 Cr” (when this article was written)Depending on the value of the market cap, the company will either be a “mid-cap” or “large-cap” or “small-cap” company! Now the question is, how do YOU calculate the market cap of a particular company? You don’t! Just go to a website like MoneyControl.com and look up the company whose market cap you are interested in finding out! The figure in front of “Mkt. Cap” will be the market cap value.Having seen what market cap is and how to find out the market cap of a particular company, let us try to understand the concept of “free-float market cap”



What is "free-float market capitalization"?

Many different types of investors hold the shares of a company! The Govt. may hold some of the shares. Some of the shares may be held by the “founders” or “directors” of the company. Some of the shares may be held by the FDI’s etc. etc!Now, only the “open market” shares that are free for trading by anyone, are called the “free-float” shares. When we are calculating the Sensex, we are interested in these “free-float” shares!A particular company, may have certain shares in the open market and certain shares that are not available for trading in the open market. According the BSE, any shares that DO NOT fall under the following criteria, can be considered to be open market shares:
· Holdings by founders/directors/ acquirers which has control element
· Holdings by persons/ bodies with "controlling interest"
· Government holding as promoter/acquirer
· Holdings through the FDI Route
· Strategic stakes by private corporate bodies/ individuals
· Equity held by associate/group companies (cross-holdings)
· Equity held by employee welfare trusts
· Locked-in shares and shares which would not be sold in the open market in normal course.
A company has to submit a complete report about “who has how many of the company’s shares” to the BSE. On the basis of this, the BSE will decide the “free-float factor” of the company. The “free-float factor” is a very valuable number! If you multiply the "free-float factor" with the “market cap” of that company, you will get the “free-float market cap” which is the value of the shares of the company in the open market!
A simple way to understand the “free-float market cap” would be, the total cost of buying all the shares in the open market! So, having understood what the “free float market cap” is, now what? How do you find out the value of the Sensex at a particular point? Well, it’s pretty simple….
First: Find out the “free-float market cap” of all the 30 companies that make up the Sensex!Second: Add all the “free-float market cap’s” of all the 30 companies!Third: Make all this relative to the Sensex base. The value you get is the Sensex value! The “third” step probably confused you. To understand it, you will need to understand “ratios and proportions” from 5th standard mathematics. Think of it this way:Suppose, for a “free-float market cap” of Rs.100,000 Cr... the Sensex value is 4000…
Then, for a “free-float market cap” of Rs.150,000 Cr... the Sensex value will be..
So, the Sensex value will be 6000 if the “free-float market cap” comes to Rs.150,000 Cr!Please Note: Every time one of the 30 companies has a “stock split” or a "bonus" etc. appropriate changes are made in the “market cap” calculations.Now, there is only one question left to be answered, which 30 companies, why those 30 companies, why no other companies? The 30 companies that make up the Sensex are selected and reviewed from time to time by an “index committee”. This “index committee” is made up of academicians, mutual fund managers, finance journalists, independent governing board members and other participants in the financial markets.
The main criteria for selecting the 30 stocks is as follows:
Market capitalization: The company should have a market capitalization in the Top 100 market capitalization’s of the BSE. Also the market capitalization of each company should be more than 0.5% of the total market capitalization of the Index. Trading frequency: The company to be included should have been traded on each and every trading day for the last one year. Exceptions can be made for extreme reasons like share suspension etc. Number of trades: The scrip should be among the top 150 companies listed by average number of trades per day for the last one year. Industry representation: The companies should be leaders in their industry group. Listed history: The companies should have a listing history of at least one year on BSE. Track record: In the opinion of the index committee, the company should have an acceptable track record.
Having understood all this, you now know how the Sensex is calculated.