A lesson for others to learn

[ankurdhamija83]

Hi....Chilloo...

I very well understand your position....i know what ur going through.....
I hope...if i will be able to help you...but ths not possible...

Every trader has to go thru those emotional pains and mental trauma..anxiety....fear of loss...greed....

To become a good trader...u dnt need to time the markets right....U need to control ur emotions right...then u will see markets coming ur way.....Ur trades will start to execute better...and profitable.....

Suffering tension..loss is the part of the game...as ur a new trader..i will advise u...not to start with nifty futures....it can prove to be disastrous.....Futures are weapons of mass destruction...( I know..every1 in the forum will oppose me)....

I will advise u 2 start with stocks...and keep a check on futures...(for learning purpose)....and also...please read some books on Behavioral Finance...and F&O...they will help u alot....

And for god's sake...weneva u keep a open future position overnight....hedge it with an option....

Reg. markets...u hve made the right decision but the timing was wrong....Markets will fell heads down..in next few days/weeks....
Again..most of the ppl in the forum will oppose me..as they have always did earlier...I gave a short nifty call way back in feb..wen the market was @ 5300-5500 levels..and clearly gave my first target of 4500...but no1 acknowledged it...(Again..im not here to prove myself)....
If u want to make money..stay short..have patience...u will be rewarded....
Apply the following trading rules..-
1. Stay short...and if market closes below 4000 on weekly basis...expect a lottery...market will crash....
2. If market closes above 4545 on weekly basis..wait...if mkt..goes against u...exit..and cover ur shorts...4545 is the level to watch...and max. wait till 4650...not above tht...

Im personally short on NIfty....and i expect markets to make a new bottom...

 

[y2j826]

the lesson is here if you can understand :

http://genawareblog.blogspot.com

"how peoples lost money"

 

[krishna23]

define when u'll exit the trade before u enter it mate...the problem is when ur in the hot seat sometimes the mind stops working and freezes...go slow mate!

 

[Flock]

Hi friends, I am relatively new to trading, just 1 month old. I traded as if I knew everything and also earned around 12,000 in MINIFTY but suddenly, the trend did take a bad turn. I went for 5 shorts in August month, all averaging around 3898.00 and when the market raised, I thought it would come down before the day closes. It did not. Then I thought, ok, let us wait and hoped the next day it would fall. But right from Thursday, the market has been rising and now it stands around 4460. Just calculate my loss. A difference of 460 points for 5 Lots , 46,000 just vanished like anything. Had I covered at the initial stage itself, I would not have lost much. Still I am holding 3 lots with me, praying the market comes down at least 100 points tomorrow. No idea what is in store for me.

Yet, I have put up a brave smile, coz I have learned a great lesson through experience.

Very sad to see your situation.

I think before u start trading you have to learn about money management. I am saying this because if you are at risk of losing your entire capital with one trade it means your exposure (% of your capital used for leverage) is not correct besides the stop loss problem.

Look at it this way, if I have the best strategy which gives profit 99% of the time, ie, only 1 out of 100 transactions goes into a loss and I am trading without a stop loss and deploying all my capital. I will make profits on those 99 transactions but the 1 loss transaction will wipe me out.

Exposure control, stop loss, and a good strategy are the three things that are essential for success in trading.

Also like somebody else said you have selected the wrong product. Carrying overnight positions in futures is not the way to begin. If you have to trade in futures, then paper trade and then day trade first after you get the exposure, stop loss and strategy right.

Regards

 

[sudoku1]

Unrealized fact:
No 1 in d world is afraid 2 speak d truth..Everybody is only afraid 2 face d consequenses after d truth is let out !

 

[uasish]

http://www.traderji.com/futures/23050-lesson-others-learn-2.html#post197085

Gamblers need Luck.
Suppose there are 100 gambler gambling on the possibilty of getting any one digit from 0 to 9.Each putting a bet on their favourite number to crop up in the result.
The owner of the gambling den is very honest & pays instantly after the result & the results are not FIXED ,always random.
After few yrs 99.9999 % of gamblers will loose their property & the den owner will make one after another property.
This fact anybody can verify in real gambling going on in the back alley of any city/town.
Why the gamblers Loose becoz the chance of winning for him/her ,when it is one is to one with the house(or den owner) is 1/10 & for house(or den owner) it is 9/10.

Hence to win in a Random event we must have ODDS either neutralized or in favour.
Secondly as there is 100% chance of our trade to go against us hence before putting the trade we MUST know that Price point where to Exit and say OK this trade has not gone in my favour let me proceed to the next trade.
When the odds are in our favour in the Long haul we would be in Net Profit.

So it boils down to LEARN the thing.

 

[Czar]

well i saw a few complain about hitting stops & market turning, please keep in mind you have to read many thread & listen to what others gurus have guided regarding stoplosses specifically as just keeping random stops is as useless as throwing away your trades...

 

[praveen taneja]

http://www.traderji.com/futures/23050-lesson-others-learn-2.html#post197085

gamblers need luck.
Suppose there are 100 gambler gambling on the possibilty of getting any one digit from 0 to 9.each putting a bet on their favourite number to crop up in the result.
The owner of the gambling den is very honest & pays instantly after the result & the results are not fixed ,always random.
After few yrs 99.9999 % of gamblers will loose their property & the den owner will make one after another property.
This fact anybody can verify in real gambling going on in the back alley of any city/town.
Why the gamblers loose becoz the chance of winning for him/her ,when it is one is to one with the house(or den owner) is 1/10 & for house(or den owner) it is 9/10.

Hence to win in a random event we must have odds either neutralized or in favour.
Secondly as there is 100% chance of our trade to go against us hence before putting the trade we must know that price point where to exit and say ok this trade has not gone in my favour let me proceed to the next trade.
When the odds are in our favour in the long haul we would be in net profit.

So it boils down to learn the thing.

sir i want to learn the thing that wat is trend n where all are going can u teach me pls god bless u

 

[ankurdhamija83]

See...there are 2 things....One is a trend and other is a correction in the trend...
The only big confusion in the stock market is whether it is a trend...or a correction in the ongoing trend or a complete trend reversal....

The phase which we had till Jan 2008...was a trend...a bull trend..and the intermediate corrections were mere corrections...which got immediately bought off....

Same is the case now...what we are in is a bear trend....Every rise/pullback is kind of correction...Which will get sold off...just as opposite to the bull trend...but the problem is ...as many of the traders are used to buying low...Its human psychology...cant help it...

Trend doesnt change in one day....it takes time...Imp pattern of trend reversal is - Head and shoulder pattern...

Also...trend reversal happens after a major peak..or a catastrophic bottom...
I will explain the psychology behind it..When the markets were near 6300 levels...and Rel Power was arnd the corner...U can recall tht even panwalla...a cobler...housewives(layman person)...was ready to buy it...Such was the euphoria...When such kind of euphoria comes...then its the end of the bull market...
Now the technical reason...even the last man standing has bought the shares...then who the hell is left to buy them nemore....Who will drive up the stock prices....When every1 knows tht market will touch 25k..30k...nifty 8k....then who the hell is the smart person...will the smart money enter???when all the fools were entering??? No way...ask urself these ques....

Everybody knows...tht UPA has won the election...and market is going to touch 5000...WIll the smart money enter..No way.....They will first take you to 4000 levels...make u exit bcoz of fear and panic..and then move higher...and make u stand outside....


Now coming back to trend reversal....Till the point the last man standing sells his shares...and swears to god...tht he/she wont trade..bear market wont be over....Till the point the analysts on TV dont say tht dont buy..there is no point staying in the market...it wont be a bottom....

All the analysts on TV are saying tht its a good level to buy...repeatedly....IF all the common ppl and weak hands buy now...will the market be able to rise...NO way..bcoz they will sell after 2000/3000pt rally on the sensex....bcoz they are the weak hands...and market will never let weaker hands capitalise...Market will go beyond 4k..3800 levels...make the weaker hands exit in fear/panic/anxiety...and will then start rising...and will again make fool of them....

And this will keep on happening forever....the smart ppl will remain the same..and weaker hands will keep on changing...Remember this...

Now im tired of typing...lol...

Understand human psychology...and mix them with technicals...u will be happy...

I again believe...the markets will make a low below 4000...or will atleast re-test sub 3800 levels,,,donno wen..2mrw...may be next week...month....
But they will surely...I will keep 2 factors/checkpoints for my short covering...close above 4545-4670..and the last point for bears is 5370,,,thts it...

 

[VJAY]

sir i want to learn the thing that wat is trend n where all are going can u teach me pls god bless u

Hai friend,
Go to the link of great saint sir read it and follow it.remeber to give thanks and blessing to SAint sir.
http://www.traderji.com/technical-analysis/6072-teach-man-fish.html