trading strrategy for lifelong profit

sell sorrow on every rise! 

buy laughter on every dip!!

stock market

"what is a stock market, papa!"

"it is a market for trading, son."

"trading what, papa!"

"trading of retail traders!"

conspiracy!

after years

of

tears

sweat

and blood

just when

i had become

somewhat proficient

in trading

they are now saying

that the world is about to end

in dec 2012......


that is unfair

very unfair

a "universal" conspiracy!

a suitable boy!

the girl

picked up the newspaper

opened the matrimony page

and started searching

for "a suitable boy"

--

she stopped at one

and read

"wanted bride

for a handsome boy

age 27

5'10"

fair

M.A.

teetotaller

vegetarian

early simple marriage....."

--

she was not impressed.

she abandoned the ad midway

and was about to skip to the next one

when her eyes stumbled at the last line of that ad

"preparing for IAS"

this line changed the entire scenario

she talked to her parents

they fixed the marriage

and

the two tied the knot!

--

after 6 months

the boy failed at the IAS exam.

the girl divorced him!

--

after another 6 months

the girl decided to marry again.

she picked up the newspaper again

went to the matrimony page

and started searching

for mr.right!

--

her eyes stopped at the following ad

"wanted

divorcee bride

for a handsome boy

age 32

5'9"

wheatish complexion

M.Sc.

non-vegetarian

early marriage....."



the girl was again not impressed

dropped the ad midway

and was about to move to the next ad

when her eyes

noticed the last line

"opened a demat account

started stock trading"


she again talked to her parents

they arranged the marriage

and

both

"entered the holy trade"

--

within 3 months

the young "trader"

went bankrupt....

the girl divorced him!

--







(moral of the story =

you don't become a trader

just because you have started trading)

the big worry of a trader!

the entire family of a trader

was watching the movie

"2012"

together

on a sunday afternoon

on their 32 inch

new plasma tv!

--



by the end of the movie

the entire family

was

dead frightened!

the very fact

that the world would end

(as per the prediction of the maya calender)

on december 23, 2012

and the visuals of the likely disaster

in the movie,

had sucked the life out of the whole family!

--

everyone was

tense

and

speechless

TILL

the trader

uttered innocently

"if the world ends on 23rd december 2012

which is a sunday

what will happen to

the open positions

in the stock market

on monday!!!"

trading - in the eyes of dictionary!

i checked up the dictionary

for the meaning of a 'trader'.

this is what i found

"a person who buys and sells

goods and services"

by this definition

everyone in the stock market

can claim to be a trader!

not only this

we can claim to be a successful trader

as long as we manage to successfully buy

and successfully sell shares!

--

nowhere did the definition mention

that one needed to be profitable

to be a successful trader!

--

i looked further and found

"trade on"

i checked for its meaning

"take advantage of"

it said!

that was better!

we must 'trade on' opportunities!

--

i looked still further

and found

"trade off"

i checked for the meaning

"exchange something as part of a compromise"

i realised that this is what majority of us do

-compromise!

--

so, in reality

we don't trade

we trade-off!

--

then

i decided to look for "profit"

i checked for the meaning

it said

"advantage"!

by this definition

we all are profitable!

because we are in a state of advantage

in majority of the trades

for majority of the time!

that we let the advantage slip-by

failing to book the profit,

is a different matter.

but the definition never mentioned

that encashing the advantage

was important to be profitable!

--

i was happy to note that we are in profit

for atleast 90% of the time

we are in the trade!

--

i checked further

and came across the word

"profiteering"

the dictionary gave the meaning as

"the making of a large profit

in an unfair way"

this reminded me

of the big pockets of the market!

surely, they are the ones profiteering!

but what do they call the big profits earned in a fair way?

i wanted to do that!

but the dictionary was silent on this!

--

anyhow

now i felt like

checking it up

for "loss" also.

--

the dictionary said

"the feeling of sadness after losing a valued thing"

....on reading this definition

the mountain of buried losses

deep inside me

erupted like a volcano!

--

i looked some further

and saw the phrase

"at a loss"

meaning

"uncertain or puzzled"

well, that's what we are

during trading hours...at a loss!!!

--

finally,

i looked up for

"experience".

it said

"knowledge or skill gained over time"

--

and i got ready for it!

he or she?

i don't like addressing the stock market as

"it"

the reason is simple

i don't think stock market is a non-living thing!

afterall, we use "it" only for non-living things.

--

so,

considering the market as alive

and kicking (literally)

should i address it as

"he" or "she"?

--

big dilemma!

--

fortunately

i have to my rescue

john gray's masterpiece

"men are from mars, women are from venus"

in it

john gray has presented

many starking different characteristics of

men and women!

--

at one place he says

that women are like waves!

just like waves, they go thru ups and downs of moods.

when you see one

with upset mood

without any apparent cause

don't try to see reason or logic into it!

similarly,

if you find your wife

in a superb mood

but can't figure out

any sensible reason to be ecstatic

don't scratch your head!

it is all natural

and ok

and fine!

nothing abnormal about it!

--

i find this description

perfectly matching that of the market!

they, too, move in waves!

they go up and down

defying fundamental limits!

many times

their mood fluctuations

are beyond logic!

at times

they are plain bizarre!!!

--

so i have got my answer!

stock markets are feminine

and hence should be addressed as"she"

--

but that leads me to the second

and logical counter-question

"if market is a she

who's he?"

--

well,

for the answer to this one

i once again have to take john gray's help!

in his mega-hit book

he goes on to say

that men are like rubber bands!

being human

they too are subject to fluctuations in the mood

but unlike women

they don't display waves of moods.

instead,

whenever they are hit by "mood"

they simply withdraw from the scene

till they get "normal"

and then

like "rubber bands"

come springing back

equally forcefully

as when they had retreated!

nobody knows

why they went away

and why they have come back!!!

--

i see these traits

similar to the traits of a trader!

when hit by the unpredictable and unfathomable

mood fluctuations of "she" market,

the traders just withdraw from the market!

they don't share anything with anyone!

they just pack-up

pick-up

and leave from "the pit"!

strangely

just like "men" and "rubberbands"

they come back once they have drowned their sorrow

or evaporated their profits!!!

--

so, the traders are the "he"

in this story.

and

it doesn't matter

whether the trader is a man or a woman!

--

and ultimately

"she" always has the last word!