Technical Analysis - Graduation Day :)

[jagankris]

Why a good mentor is absolutely necessary.

Especially when one decides to make Trading/Investment as his full time career and no other income to support and for self sustenance.

Cost of the learning curve time .

Every body I presume must have started with failures.At least from my personal exp and experiences of local traders who I know every one entered this career after wiping out their trading losses couple of times.

Once capital is eroded then comes the psychological obstacles.

What are they ?

Stage 1:
------------
1.Loss of self worth.
2.Loss of Self confidence.

If the second attempt also fails not to the level of loss in the first attempt.


Stage 2:
-----------

1.Loss of self worth.
2.Loss of Self confidence.
3Indicator fascination.
4.Analysis paralysis.
(Trying to find a near perfect solution or strategy and
Optimization of the strategy).
5.Lack of emotional support from the family and peers.
6.One gains the importance of preserving the capital as the capital has diminished and time to break even the draw down takes more time.

The third attempt takes more time and more physiological barrier as the negative image and failure becomes a chronic habit.

Stage 3:
-----------
1.Fear of outcome - - and hence lack of confidence in implementing the decided strategy rigidly. - I must thank Linkon ji for this.

Advanced stages
---------------------
Greed and taking over leveraged position due to over confidence etc.

 

[jagankris]

Traders in the above said stages 2/3 - I must thank Smart Trade ji for the below answer.

1.First choose a strategy which suits your temperament.

2.Aim should be to become break even or marginally profitable trader.....the next stage is a consistently profitable calm trader....


How to differentiate between if a trader suffers from "Fear of outcome" or the strategy doesn't suit his temperament ?


Friends our experts will give the answer for the above question..

 

[jagankris]

Readings from Internet

Trading Psychology - Consecutive Loses AND The Trading Psychology Spiral

You go long and the market immediately goes down - you go short and the market immediately goes up. That's 2 consecutive losses AND you are getting a little 'anxious' so you don't take the 'next' trade and it of course works. BUT to make the situation worse you then 'chase' the entry and it immediately reverses - another loss AND this is 3 in a row. Ok 1 more try - this can't happen on every trade can it - pray mode?

This time though you will be real clever. You have at least noticed that the market is in a range AND it's the bounce from the low/retrace from the high that is causing all the problems. So this time the next trade you take will be a range extreme fade AND the hell with your trading method. The market is at the range low AND per your new on the fly plan you go long AND the range immediately breaks out giving you consecutive loser #4 - trading against a method trade that is going far enough to pay for the previous 3 losers and make you net ahead.

Now what are you supposed to do QUIT? AND to be sure that there is no more temptation your throw your computer out the window and dive out right behind it. You are in a trading psychology spiral.

Every day traders Nightmare.Isn't it ?

Experts - Please share your experiences in coping with this.

 

[timepass]

... AND to be sure that there is no more temptation your throw your computer out the window and dive out right behind it. You are in a trading psychology spiral....

and then you take up the offline trading (over phone) and lose again then you disconnect the phone and throw it outta the window.. then you walk to the broker's office and lose again and again, till the broker throws you outta the window...

 

[anandksn]

Dear Friends,

The realm of technical analysis,Systems,Indicators and Theories seems to be never ending.The hype behind each theory,indicator,systems makes one to put sufficient time,money,effort to learn,understand,risk his money and then come to a conclusion to take it or not.

In my understanding TA is only a quasi science or ART or a Probabilistic assumption or a kind of price behavioral patterns.

Is there any one who is happy and stopped learning knowing that there is no perfect system.

I request our members to share their experiences so that the learning curve will be enhanced and will be helpful in shortlisting the best and will help every one not to get lost in the jungle of Technical analysis or Analysis paralysis or Indicator fascination etc etc.

TIA.

I agree with your opinion
Please read the following book and update your opinion
all the best
first book
Elder Alexander - Trading For A Living
second book
Elder Alexander - Come Into My Trading Room - A Complete Guide To Trading
just click on the title of the book and download the books

regards
-anand karuparthi

 

[jagankris]

I agree with your opinion
Please read the following book and update your opinion
all the best
first book
Elder Alexander - Trading For A Living
second book
Elder Alexander - Come Into My Trading Room - A Complete Guide To Trading
just click on the title of the book and download the books

regards
-anand karuparthi

Dear Mr.Anand,

Thanks for sharing the links.

We would love to here from you - what you liked from Elder's books in an nutshell .

TIA.

 

[ashwani chadha]

I agree with your opinion
Please read the following book and update your opinion
all the best
first book
Elder Alexander - Trading For A Living
second book
Elder Alexander - Come Into My Trading Room - A Complete Guide To Trading
just click on the title of the book and download the books

regards
-anand karuparthi

i would like to give my view that technical analysis has no end:the end is where your technique helps you to take consistant profit from the market:nine out of ten people journey stop their:after that he is a normal person just earning for his famly:but their is still one who follows the basic one rule, out of the fifty rules--SMARTER YOU ARE LONGER IT TAKES--he is a real expert because he learns till the last day of his life !!!!!

 

[murthymsr]

.................
1.Loss of self worth.
2.Loss of Self confidence.
3Indicator fascination.
4.Analysis paralysis.
........................

Very informative post.
May be I am a victim of this.

One should not miss to visit the wiki link.

Regards.
nurthymsr

 

[jagankris]

i would like to give my view that technical

Dear Ashwani,

Every one speaks of learning including me.There is no end for learning.
But at least for me there is an end for learning "TA".

Have you ever thought that you are wasting your time ?

For ex- Mr.Anand wants us to read theories propounded by Elder.
While Elder could have moved on to the next level and stopped doing what he wrote several years back.

1.Why do you think there is no end ?

2.What is that you want to learn ?
- You want a system to make money consistently.

3)- if there is a holy grail then markets wouldn't exist.
- We don't have the power to control the markets - we can just follow what it does.
- 80% of profit from the markets comes from 20% of the trades .

Point 3 invalidates point 2 and hence I think that my search in TA is nearing an end except for 2 more theories and then after I wont pursue further in "TA".

But learning in MM,Position sizing,Algo trading,Fundamental analysis and equity research etc will be there.
That way I agree there is no end for learning .

 

[ashwani chadha]

Dear Ashwani,

Every one speaks of learning including me.There is no end for learning.
But at least for me there is an end for learning "TA".

Have you ever thought that you are wasting your time ?

For ex- Mr.Anand wants us to read theories propounded by Elder.
While Elder could have moved on to the next level and stopped doing what he wrote several years back.

1.Why do you think there is no end ?

2.What is that you want to learn ?
- You want a system to make money consistently.

3)- if there is a holy grail then markets wouldn't exist.
- We don't have the power to control the markets - we can just follow what it does.
- 80% of profit from the markets comes from 20% of the trades .

Point 3 invalidates point 2 and hence I think that my search in TA is nearing an end except for 2 more theories and then after I wont pursue further in "TA".

But learning in MM,Position sizing,Algo trading,Fundamental analysis and equity research etc will be there.
That way I agree there is no end for learning .

dear mr jagan i am step by step agree with your views they are all perfect.technical analysis is available for small investers in india from 2005 & basically for even professionals from 2000.i do feel like you ,india is still10 year backward to usa/u.k/austrelia in technical analysis.what ever TA i learnt in india by making huge payments in india,was use less to actually earn money,but what i learned free of cost from out of india sites just by search on google up dated my leval to 2010.what strategies i use , i never learn any thing regarding any strategy on indian site.what is now latest will be out dated in 2020 , i am sure so a learning process is required.i dont want to be a TA USING 2000 POPULAR STRATEGY IN 2010 , I MAY SOLVE FEW OF YOUR NEXT PROBLEMS, I MAY LEARN SOME THING NEW FROM YOU THANKS