do what u fear doing in the market

"Don’t look for easy trades and setups at all times. 
Test yourself by working challenging trades and difficult markets 
in order to test and improve your skills. 


For example, if you’re uncomfortable and not skilled in trading options, 
spend a month just trading options. 
If you’re uncomfortable with shorting stocks, 
spend a month just shorting stocks. 


We only have the opportunity to improve if we constantly test ourselves 
and work on things we find most difficult. 
If you don’t learn to work on your weaknesses, 
sooner or later they will catch up to you when it will hurt the most."


Dr.Bob Rotella

market loves to kill giant egos

"Those who learn how to minimize the damage when they are wrong
and who readily own up to the mistakes they make
will do far better over the long haul.
Making mistakes is a part of this game,
but knowing how to handle them is everything.
Likewise, if you attach your ego to your portfolio’s performance
you are destined for failure.
The market absolutely loves to kill those with big giant egos
and who look for the markets as a place to prove how smart they are.
Markets chew and spit out these folks routinely for good reason
and they will continue to do so at every available opportunity."

- Charles Kirk 

what do they say?

two technical analysts i admire and listen carefully (despite the public reactions) are

- mr.sudarshan sukhani (SS)

- mr.ashwani gujral (AG)

what i like about them is

- they don't fear to speak their mind without bothering about what people will react like

- they don't double speak, i.e. they don't speak in a way to leave escape routes open in case their view goes
wrong.
- they have a spark, an edge, raw talent. they defintiely know a thing or too that matter.

i have learnt a lot from them, including trading "mannerisms and attitude"

-

in this thread i will be sharing their views and opinions about possible market moves.

=====================


26/9 EOD

AG sensing bullish overtones and undercurrents in bank nifty
http://economictimes.indiatimes.com/markets/stocks/views/recommendations/if-nifty-finds-4750-as-support-level-bank-nifty-will-also-trade-higher-ashwani-gujral/articleshow/10127223.cms

point of smooth sailing

i constantly try to figure out
how the market can trick or fool
the majority of investors.

then after the majority have been fooled
i get in
at what i call
the 'pointof smooth sailing.'

a so-called failed signal
can actually be the beginning of
a more complex pattern
that is far more reliable
than the initial signal
based on a conventional pattern.

- mark minervini

1325 trading wisdom quotes

http://www.scribd.com/doc/59950770/Trading-Wisdom-Quotes

thinking like a trader

"trading
distilled down to its simplest form
is a pattern recognition numbers game.

we use analysis to identify patterns,
define risk
and determine profit targets.

the trade works or it doesn’t.

in either case we go on to the next trade.

this is simple to conceive difficult to do.

trading is hard
because you must operate in a state of
not having to know,
even though your analysis may at times
prove you to be correct. "

- trading in the zone
mark douglas

technical patterns are probability edges not certainties

"at the most fundamental level
the market is simply a series of
up and down tics that form patterns.

using technical analysis
you can begin to define these patterns as edges.

any pattern defined as an edge
is simply an indication that there is a high probability
that the market will move in one direction or another.

the repeating patterns imply consistency
but the reality is that each pattern is unique.

the underlying force behind each pattern is traders,
and traders that contribute to the current pattern
are different from the traders that formed any previous pattern."

- trading in the zone
mark douglas

a professional trader's secret

- have a method, an edge

- keep taking every trade indicated by this "edge"

- since the trade is based on a proven seasoned "edge" and since you know that anything can happen in a given trade, and since you also know that irrespective of the outcome of this trade you are bound to make good money if you keep following your "edge" without anxiety in the long run, stay in the trade till it is "definitely wrong".

- take the next trade irrespective of the outcome of previous trade.

- if the edge is right, by probability, you will make good money in the long run.

- do all this with a trade size just right for sound sleep at night.

these formulae are based on the following five fundamental truths
given by mark douglas
in
trading in the zone

1. anything can happen.

2. you don’t need to know what is going to happen next in order to make money.

3. there is a random distribution between wins and losses for any given set of variables that define an edge.

4. an edge is nothing more than an indication of a higher probability of one thing happening over another.

5. every moment in the market is unique.  

predicting trading success amidst unpredictablility

"how does one produce
consistent results from an uncertain probabilistic outcome?  

this is another paradox of trading,
random outcome consistent results.  

first you have to believe
in the uncertainty and unpredictability
of the outcome of each individual trade.

second you have to believe
that the outcome over a series of trades
is relatively certain and predictable.  

this degree of certainty is a
function of how good the edge is.  

you must learn and completely accept the fact
that you don’t know what will happen next,
and in fact don’t need to know,
in order to be consistently profitable.

since you don’t have to know the outcome of each trade
you do not place any significance, emotional or otherwise,
on each individual trade."

- trading in the zone
mark douglas

the new trade

"consider the perspective
of a successful trader
observing a nervous beginner.

say a trader experiences a series of losing trades,
thus he is hesitant to take the next signal.

the professional trader would consider the novice traders fear
as irrational
as the “now moment” opportunity
has nothing to do with the last few trades.

each trade
is simply an edge
with a probable outcome
and is independent of every other trade."

- trading in the zone

mark douglas

no gain with pain

"top traders do not perceive anything about the markets as painful;
therefore no threat exists for them.

no threat means nothing to defend against.

nothing to defend against means
there is no reason for your conscious and subconscious defense mechanism
to be activated.

to obtain this mind set you have to redefine your relationship to market information
so that there is little or no potential to perceive anything as threatening.

this new mind set will allow you
to remain focused on the opportunities available
instead of tapping into emotional pain. "



- trading in the zone
mark douglas

the last bug in the trading software

(excerpts from Trading in the Zone)


"a state of mind, or perspective is like software code.

you may have several thousands of lines of perfectly written code
with only one flawed line or character.

this one flaw
in relation to the rest of the code
could ruin or alter the performance of an otherwise perfectly written system.

the solution appears simple:
fix the misplaced character and everything runs smoothly.

however, finding the error
or even knowing it exists
can take considerable time and expertise.

when it comes to the ideal trading mentality
everyone is a certain psychological distance away.

virtually everybody starts out with flawed software.

as your perspective shifts
and/or you integrate new beliefs regarding responsibility and risk,
this shift would be the equivalent of finding
the flawed line or character in your mental software
and replacing it with something that works.

this internal shift is often described as the “ah ha” experience......

typically you might think

“it was right in front of me the whole time, i just didn’t see it”,

or

“it was so simply why couldn’t i see it?”

you are trapped !

"most traders believe
that the best way to avoid losses and emotional pain
is to learn more about the markets.

this bit of logic is a trap and presents another paradox.

the more you learn about the markets
the more you realize there are too many variables,
often conflicting.

in addition, there are no limits to the market’s behavior.
it can do anything at any moment.

this means that no matter how much you learn about the market’s behavior,
no matter how brilliant an analyst you become,
you will never anticipate every possible way
the market can make you wrong
or cause you to lose money.

if you are afraid of being wrong or losing money
you will never learn enough
to compensate for the negative effects
these fears will have on your ability to trade objectively and without hesitation.

the hard cold fact of trading is that every trade has an uncertain outcome.

unless you learn to completely accept the possibility of an uncertain outcome
you will try consciously or unconsciously
to avoid any possibility you define as painful."


- mark douglas
(trading in the zone)

trading in the zone (summary of ebook)

http://tradersbase.com/backup/ebooks/summarytradinginthezone.pdf

japanese candlestick charting techniques (ebook)

http://www.4shared.com/get/yOLV1cNR/Japanese_Candlestick_Charting_.html

how mindset effects understanding and action

http://media.wiley.com/product_data/excerpt/33/15766037/1576603733-97.pdf

trading essentials - I

"being wrong is acceptable.

but staying wrong is totally unacceptable.

being wrong isn’t a choice,

but staying wrong is.

to play any game successfully,

you have to have some skill,

an edge,

but beyond that it is money management.

good traders manage the downside;

they don’t worry the upside."


- mark minervini

psychology of tippers - II

(reminiscences of stock operator)



"tips! how people want tips!

they crave not only to get them

but to give them.

there is greed involved, and vanity.

it is very amusing, at times, to watch really intelligent people

fish for them.

and the tip-giver need not hesitate about the quality,

for the tip-seeker is not really after good tips,

but after any tip.

if it makes good, fine!

if it doesn't, better luck with the next.

..........tip-seekers and tip-takers are invariably tip-passers,

tip-broadcasting becomes a sort of endless chain advertising."

opening and closing ceremonies

the olympics

start with a opening ceremony

and

end with a closing ceremony.



but bull runs

and bear runs

don't start or end

with any such ceremonies.



in the words of jesse livermore



"market does not culminate

in one grand blaze of glory.

neither does it end

with a sudden reversal of form.

a market can and does often cease to be a bull market

long before prices generally begin to break."



why does this happen?



this particularly suits the oeprators.

any sharp start

or end

would rob them of the opportunity

to distribute and accumulate.

a strange way of stock picking - II

"it was an old trading theory of mine

that when a stock crosses 100 or 200 or 300

for the first time

the price does not stop at the even figure

but goes a good deal higher,

so that if you buy it as soon as it crosses the line

it is almost certain to show you a profit.


timid people don't like to buy a

stock at a new high record.

But I had the history of such

movements to guide me."



- reminiscences of a stock operator