Know when to go "ALL-IN'

For those of you who are avid players of "Poker", would recognize and understand the meaning of the title of this post. For the uninitiated, you can read about the card game here.

"In the end, poker is gambling, so victory is never guaranteed. Nevertheless, if you're armed with knowledge, you'll improve your chances of coming out on top" (from HowStuffWorks.com). Some people compare the Trading business, especially intraday and Short Term Trading to Gambling. Well, then why not learn a few tips from the Gamblers themselves.

A seasoned Poker player would keeps betting small hands, till he gets the winning combination of cards, which can get him a JackPot. He would "Fold" or "Win" small amounts in a lot of his bets. But when the actual winner comes his way, he would Bet Big (ALL-IN) and win Bigger. What does the smart traders do then? They do exactly the same thing. They keep nibbling here and there for the right trade, scalping a few 10-20 points here and there or losing 10-20 points on the way. They would not put much money in these trades. These trades are only to keep them "interested" in the "Game" and observe how the game is evolving and how "Other" players are playing. But as soon as he finds his Trade Setup evolving, the Trend becoming Clear, He goes ALL-IN with all his might. This ensures a Big Win and a Bulging Bank Account for the Smart Trader.

At NiftyPower, I always tell my subscribers this thing. We take about 20-25 trades in a month in Intraday Packages. In a normal month, 4-5 of these will hit stoplosses. Another 8-10 would result in small profits (15-20 points in Futures). The remaining trades are the JackPot trades. The problem is, no one knows which of these 20-25 trades are the JackPot Trades. So what do we do? We have to take each one of them and treat them alike. Place stoploss on each of them, or keep booking small profits and trailing with stoploss at Cost. This we continue till we finally discover that JackPot Trade, which gives us maximum profits. The Smart Trader cannot Afford to Miss These JackPot Trades at any cost!