traders are great athletes as well as great spectators!
when they run
they are a treat to watch........running like an obsessed creature....full of fear!
like a fugitive involved in a hit and run case!
and when they are not running
they are great spectators
cursing themselves as to why they are not in the race!
there are 4 types of trade athletes!
1. those who cut short their profitable runs but don't honour the stop loss hits
= typical newcomer unevolved trainee trader driven by 'fear of booked loss' and 'fear of loss of profit'. still, a good, necessary and inevitable phase for any new citizen of the market.
2. those who cut short their profitable runs but also honour the stop loss hits
= the first conscious effort of the budding trader. though he still can't overcome the fear of loss of profit, he definitely doesn't fear booking the loss. they keep ringing their piggy bank with coins till one mistake gets the better of them. such traders are less as this is more of an ideal state of a trainee mind.
3. those who not only let their profitable trades run but also don't honour their stop loss hits
= a wealthy newcomer who has got skin thick enough to bear the loss of accrued profit but not thick enough to accept that his calculation can go wrong. they win big and lose it all.....and finally blame the market.
4. those who let their profitable trades run till indication of trend reversal but honour their stop loss hits.
= matured seasoned silent emotionless egoless boring money machines. this stage comes with time but does come.
Senin, 23 Mei 2011
to rob or not to rob!
becoming successful
in stock trading
is not like a bank robbery
where
you learn
how to rob,
buy the equipment
walk-in with a gun
and walk-out with bags of cash.
unlike robbing
trading is like
daily visits to the bank
and withdrawing cash
in instalments.
those who try the robbery way
in trading
get robbed themselves.
fastest and surest and safest way
to become rich
even richer than the robber
without opting for his noble way
is
to keep visiting the market
keep withdrawing
keep ploughing back
and keep compounding!
in stock trading
is not like a bank robbery
where
you learn
how to rob,
buy the equipment
walk-in with a gun
and walk-out with bags of cash.
unlike robbing
trading is like
daily visits to the bank
and withdrawing cash
in instalments.
those who try the robbery way
in trading
get robbed themselves.
fastest and surest and safest way
to become rich
even richer than the robber
without opting for his noble way
is
to keep visiting the market
keep withdrawing
keep ploughing back
and keep compounding!
Sabtu, 21 Mei 2011
how to survive operators and make money
history of the world
is nothing but the history of the rulers.
and the story of the stock market
is nothing but the moves of the operators.
what operators do
happens.
and what do operators do?
they do
what helps them win
and hands you the loss.
how do they do that?
by tricking you!
these operators have just five tricks
pity,
even these five
prove to be too many
for the nervous creatures!
trick one:
when the majority is suspecting a fall
make the price rise with sharp falls
trick two:
when the majority is strongly fearing and waiting for the fall,
make the price rise
unrelentingly, steadily but gradually.
trick three:
when the majority is suspecting a rise
keep bringing down the price
with sharp pull ups.
trick four:
when the majority is strongly sensing a rise
keep pulling down the price
unrelentingly, steadily but gradually.
trick five:
but what if the majority is confused about the direction?
simple, make sharp unexpected false moves!
so,
the better you know what is going on in your head
the better you know what the sentiment in the market is
the better you can anticipate the move of your predators.
is nothing but the history of the rulers.
and the story of the stock market
is nothing but the moves of the operators.
what operators do
happens.
and what do operators do?
they do
what helps them win
and hands you the loss.
how do they do that?
by tricking you!
these operators have just five tricks
pity,
even these five
prove to be too many
for the nervous creatures!
trick one:
when the majority is suspecting a fall
make the price rise with sharp falls
trick two:
when the majority is strongly fearing and waiting for the fall,
make the price rise
unrelentingly, steadily but gradually.
trick three:
when the majority is suspecting a rise
keep bringing down the price
with sharp pull ups.
trick four:
when the majority is strongly sensing a rise
keep pulling down the price
unrelentingly, steadily but gradually.
trick five:
but what if the majority is confused about the direction?
simple, make sharp unexpected false moves!
so,
the better you know what is going on in your head
the better you know what the sentiment in the market is
the better you can anticipate the move of your predators.
Jumat, 20 Mei 2011
time to passout?
when i joined pec chandigarh
in 1989
for a 4 year degree course
i was amused to see
a few students in our college
who
as we came to know
had been there
since a decade or more!
they were more like
"uncles"
amidst us.
upon some investigation
we found
that these "not-so-young" students
were still there
not because they were
poor at studies
(though they might have been)
but because they didn't want to passout?
why?
because they all were
into politics
majority of them
were
either office bearers
of the student wings
of their patron political parties
or
their "cadre".
none of them wanted to
leave the plum posts rich with bucks and goodies.
all of them wanted to remain young forever
all of them wanted to remain students forever
because becoming grown up
would have rendered them ineligible
for "posts" meant for "growing ups"!
they were not bothered about "career" after studying
because they had got their "career" even while studying.
not surprisingly
they all remained there
even when we passed out
four years later.
i hope they are not their
still
after 18 years!!!
same thing happens in the market.
students join the "open school of stock market"
with an intention to passout
after learning.
but
to their own amusement
and to that of each others
they end up
like those "uncle" students
who never want to passout!
while learning never ends
there comes a time
when you learnt enough
to start making a living
and put learning
on back burner
and on auto-mode!
there comes a time
when you don't have substantially new things to learn!
that is the time you need to passout
and kiss goodbye to the school
and take up
"the job"
staying in the school
just to play to a gallery
or keep everyone in good humour
or settling for the "scholarship" instead of "fat paycheque"
proves costly!
in 1989
for a 4 year degree course
i was amused to see
a few students in our college
who
as we came to know
had been there
since a decade or more!
they were more like
"uncles"
amidst us.
upon some investigation
we found
that these "not-so-young" students
were still there
not because they were
poor at studies
(though they might have been)
but because they didn't want to passout?
why?
because they all were
into politics
majority of them
were
either office bearers
of the student wings
of their patron political parties
or
their "cadre".
none of them wanted to
leave the plum posts rich with bucks and goodies.
all of them wanted to remain young forever
all of them wanted to remain students forever
because becoming grown up
would have rendered them ineligible
for "posts" meant for "growing ups"!
they were not bothered about "career" after studying
because they had got their "career" even while studying.
not surprisingly
they all remained there
even when we passed out
four years later.
i hope they are not their
still
after 18 years!!!
same thing happens in the market.
students join the "open school of stock market"
with an intention to passout
after learning.
but
to their own amusement
and to that of each others
they end up
like those "uncle" students
who never want to passout!
while learning never ends
there comes a time
when you learnt enough
to start making a living
and put learning
on back burner
and on auto-mode!
there comes a time
when you don't have substantially new things to learn!
that is the time you need to passout
and kiss goodbye to the school
and take up
"the job"
staying in the school
just to play to a gallery
or keep everyone in good humour
or settling for the "scholarship" instead of "fat paycheque"
proves costly!
Rabu, 18 Mei 2011
the trunk is not the elephant
market is a jungle
where the predators are after the prey.
but for a change
it is not the lions who rule
but
the elephants...
...the operators.
the movement of the elephants
decides the trend
but the poor hares, jackrabbits and deers
...the retail traders
take the swinging of the elephants trunk
as the change of the trend
and keep running scared
helter skelter
with the pendulum nose of the big creatures!
little surprise
they get trampled over!
--
ignore the swinging trunk
focus on the elephant.
where the predators are after the prey.
but for a change
it is not the lions who rule
but
the elephants...
...the operators.
the movement of the elephants
decides the trend
but the poor hares, jackrabbits and deers
...the retail traders
take the swinging of the elephants trunk
as the change of the trend
and keep running scared
helter skelter
with the pendulum nose of the big creatures!
little surprise
they get trampled over!
--
ignore the swinging trunk
focus on the elephant.
Sabtu, 14 Mei 2011
when the student is ready the teacher will appear
i extend invitation
to anyone wishing to learn
day trading or swing trading
from me.
you would need to come to shimla (himachal pradesh)
for one day
(with prior appointment)
the aim of this one day module
will be to equip you
with a few core tactics and methods
to finally start making money in the market.
charges : Rs.5000 *
(excl lodging/boarding)
for further details
pl email me at
jagmohanshan@gmail.com
to anyone wishing to learn
day trading or swing trading
from me.
you would need to come to shimla (himachal pradesh)
for one day
(with prior appointment)
the aim of this one day module
will be to equip you
with a few core tactics and methods
to finally start making money in the market.
charges : Rs.5000 *
(excl lodging/boarding)
for further details
pl email me at
jagmohanshan@gmail.com
Jumat, 06 Mei 2011
flies in the market
it was
a high altitude
chilled morning!
i and my trading buddy madhu
were on our adventure tour
into the himalayas.
we had reached bhawanagar
on a cliff
one kilometer above
the mighty satluj running below.
we were feeling a bit tired
and were looking for a tea break...
soon we noticed a small
roadside
makeshift
deserted
tea vending stall
in a secluded fold
of the serpentile valley.
we signalled each other
parked our enfields
and ordered
"two special chai (tea), please!"
we sat across each other
in two "coke" chairs
across a "pepsi" table
eagerly waiting for our "chai"!
while waiting
i extended my body in the chair
and closed my eyes
while my buddy
spotted a newspaper in one corner
of the "dhaba"
and reached for it!
"its four days old, sir!"
the "cheff" said.
"i'm not going to read it!"
replied madhu.
i was surprised
and so was our host.
"then what for?" i asked, cutting short my mini nap
"for this...."
saying this
madhu triple folded the old newspaper
and smashed it in a flash
on the table.
when he lifted the weapon
i and the "cheff" saw
the dead body of
a housefly!
"i hate flies!" puffed the commando!
our host smiled
and turned back
to look at the tea on the boil!
"bang!" came another explosion!
another fly was dead!
"bang! bang! bang!"
three more....gone....
"what a relief! they are all finished!"
claimed madhu!
tea came
and also came
the next brigade
of
more flies!
madhu put down his tea cup
picked up the newspaper carrying the photo of george bush
and pounded the flies he hated
like the innocent iraq!
"bang! bang! bang! bang!"
all "stinger missiles" hit the target.
the battle was won
but the war was far from over!
more "sukhoi fighters" appeared
out of nowhere!
madhu gave up!
and uttered those immortal words
"these flies
are like stock market traders...
they see their fellow flies being killed
all around them
but they never get the clue
that somebody is after them!
they keep sitting there
they keep returning back
dreaming to drink the profit of
the sugary drops of tea on the trading table!
only to be smashed down!
majority of the flies
are poor dumb greedy flying machines
but some intelligent flies
who have demat accounts
keep blaming the deficiency in their technical knowledge
rather than acknowledging
the invincible skill
of the giant "gulliver" operator
across the table!
a high altitude
chilled morning!
i and my trading buddy madhu
were on our adventure tour
into the himalayas.
we had reached bhawanagar
on a cliff
one kilometer above
the mighty satluj running below.
we were feeling a bit tired
and were looking for a tea break...
soon we noticed a small
roadside
makeshift
deserted
tea vending stall
in a secluded fold
of the serpentile valley.
we signalled each other
parked our enfields
and ordered
"two special chai (tea), please!"
we sat across each other
in two "coke" chairs
across a "pepsi" table
eagerly waiting for our "chai"!
while waiting
i extended my body in the chair
and closed my eyes
while my buddy
spotted a newspaper in one corner
of the "dhaba"
and reached for it!
"its four days old, sir!"
the "cheff" said.
"i'm not going to read it!"
replied madhu.
i was surprised
and so was our host.
"then what for?" i asked, cutting short my mini nap
"for this...."
saying this
madhu triple folded the old newspaper
and smashed it in a flash
on the table.
when he lifted the weapon
i and the "cheff" saw
the dead body of
a housefly!
"i hate flies!" puffed the commando!
our host smiled
and turned back
to look at the tea on the boil!
"bang!" came another explosion!
another fly was dead!
"bang! bang! bang!"
three more....gone....
"what a relief! they are all finished!"
claimed madhu!
tea came
and also came
the next brigade
of
more flies!
madhu put down his tea cup
picked up the newspaper carrying the photo of george bush
and pounded the flies he hated
like the innocent iraq!
"bang! bang! bang! bang!"
all "stinger missiles" hit the target.
the battle was won
but the war was far from over!
more "sukhoi fighters" appeared
out of nowhere!
madhu gave up!
and uttered those immortal words
"these flies
are like stock market traders...
they see their fellow flies being killed
all around them
but they never get the clue
that somebody is after them!
they keep sitting there
they keep returning back
dreaming to drink the profit of
the sugary drops of tea on the trading table!
only to be smashed down!
majority of the flies
are poor dumb greedy flying machines
but some intelligent flies
who have demat accounts
keep blaming the deficiency in their technical knowledge
rather than acknowledging
the invincible skill
of the giant "gulliver" operator
across the table!
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