Technical Trading - Practicing the Theory

AJAY · #61 27th September 2006, 12:26 PM

Hi Friends,

This time onwards we will go discussing the practices as per the Trader Classification- like a Day Trader, Swing Trader, Position Trader, LT Trader(Investor) etc.

We will start with the most complex (according to many players in the markets) - The Day Trading.

Before going further let's make SWOT Analysis for the day trading.

Here we will discuss the Major Issues only.

Strengths are making huge money(return against the invested capital) and no overnight carrying risks.

As these are known to one and all and as they are Strengths no discussion is required over this.

Weaknesses are Missing the advantage of position profits which just run when we just sit and ride.

Opportunities are unlimited and only our capacities limit the factors.

And finally the Threats. Threats are a small loss everyday can remove the entire capital in a very short span of time.

Friends! I want your active participation here onwards. Now I am stopping it here. And once I start receiving further inputs into this SWOT for day trading from your end, we will finalise the SWOT and address the Weaknesses and Threats issues and pin them.

Thanks and happy Practicing Technicals

AJAYKUMAR

aca_trader · #62 27th September 2006, 01:25 PM

Quote:

Originally Posted by AJAY

Hi Friends,

This time onwards we will go discussing the practices as per the Trader Classification- like a Day Trader, Swing Trader, Position Trader, LT Trader(Investor) etc.

We will start with the most complex (according to many players in the markets) - The Day Trading.

Before going further let's make SWOT Analysis for the day trading.

Here we will discuss the Major Issues only.

Strengths are making huge money(return against the invested capital) and no overnight carrying risks.

As these are known to one and all and as they are Strengths no discussion is required over this.

Weaknesses are Missing the advantage of position profits which just run when we just sit and ride.

Opportunities are unlimited and only our capacities limit the factors.

And finally the Threats. Threats are a small loss everyday can remove the entire capital in a very short span of time.

Friends! I want your active participation here onwards. Now I am stopping it here. And once I start receiving further inputs into this SWOT for day trading from your end, we will finalise the SWOT and address the Weaknesses and Threats issues and pin them.

Thanks and happy Practicing Technicals

AJAYKUMAR

Dear Ajay,

The SWOT analysis of day trading you have presented is really appraciable.
Can I request you to do a SWOT analysis from the view point of a day trader as well?

While Strengths and weaknesses are individual attributes, please enlist the required strengths and commonly existing weaknesses among day traders.

Best Regards,
--Ashish

rahulg77 · #63 27th September 2006, 02:42 PM

Hi Ajay,

Well as for strenths lets say it can be very challenging and hence stimulating for some ppl. On the other hand it also has a lot of stress on a person.

Some doing day trading has to do it as a full time job in respect to a person who does position trading and hence can do it with some other business acitivity.

Rgds

Rahul

shivashimoga · #64 27th September 2006, 04:45 PM

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jdm · #65 27th September 2006, 09:29 PM

Quote:

Originally Posted by AJAY

Strengths are making huge money(return against the invested capital) and no overnight carrying risks.

hi ajay,

the strength of the game also gives rise to its greatest weakness, i.e. greed.

cheers,
jdm.

chartman · #66 27th September 2006, 10:01 PM

Hi,
This is my first post. Interesting thread.
My experience has been that most people start out as long term traders, find the payback too slow, move to shorter time frames until the "hook" of day trading is in.
Once it is in, it will not let go until all your money is gone!
As the money goes, the player once again reverts in time frame- from day trading to short term player to swing investing to medium term holding to finally long term investor.
All the time is he ever blaming his lack of skills? NO Way! It is always the ubiquitous broker/operator/tipster/advisor/technical analyst who is responsible for having got him out of the "long term" mindset in the first place and that led to all the losses!

Unfortunately, I find, technical analysts take a big share of this blame. I think there is a thread there all by itself!

A bit cynical for the first post, maybe. But then, in the market cynicism is what pays, I have found.

Adios.
ChartMan

jdm · #67 28th September 2006, 10:29 AM

Quote:

Originally Posted by chartman

Hi,
This is my first post. Interesting thread.
My experience has been that most people start out as long term traders, find the payback too slow, move to shorter time frames until the "hook" of day trading is in.
Once it is in, it will not let go until all your money is gone!
As the money goes, the player once again reverts in time frame- from day trading to short term player to swing investing to medium term holding to finally long term investor.
All the time is he ever blaming his lack of skills? NO Way! It is always the ubiquitous broker/operator/tipster/advisor/technical analyst who is responsible for having got him out of the "long term" mindset in the first place and that led to all the losses!

Unfortunately, I find, technical analysts take a big share of this blame. I think there is a thread there all by itself!

A bit cynical for the first post, maybe. But then, in the market cynicism is what pays, I have found.

Adios.
ChartMan

the biggest devil lies in ourselves. one can win only and only when he conquer himself.

the masters of the game (whether investors or traders) has made it not because they have find a holy grail (TA, FA, tips or whatever), but because they have mastered the process of self discipline.

cheers,
jdm.

SGM · #68 28th September 2006, 11:14 AM

Quote:

Originally Posted by chartman

Hi,
This is my first post. Interesting thread.
My experience has been that most people start out as long term traders, find the payback too slow, move to shorter time frames until the "hook" of day trading is in.
Once it is in, it will not let go until all your money is gone!
As the money goes, the player once again reverts in time frame- from day trading to short term player to swing investing to medium term holding to finally long term investor.
All the time is he ever blaming his lack of skills? NO Way! It is always the ubiquitous broker/operator/tipster/advisor/technical analyst who is responsible for having got him out of the "long term" mindset in the first place and that led to all the losses!

Unfortunately, I find, technical analysts take a big share of this blame. I think there is a thread there all by itself!

A bit cynical for the first post, maybe. But then, in the market cynicism is what pays, I have found.

Adios.
ChartMan

Hi

Nice nick name Chart Man, and that to with your expressed views about TA.

welcome to the forum CM

Regards
Sanjay

bvpraveen · #69 26th October 2006, 08:24 AM

Hi Ajay,

I happened to read this post yesterday, suggested by Cage. Very good post, Ajay. I'll definitely keep tracking your thread.

I'm very much concerned about your health. Very glad to find your wonderful contribution, even in such health.

I wish for your PERMANENT recovery,
Praveen.

P.S: Was surprised to see that this is the only post started by you.

bvpraveen · #70 26th October 2006, 08:48 AM

Quote:

Originally Posted by AJAY

Hi Friends,
............

Before going further let's make SWOT Analysis for the day trading.

............
AJAYKUMAR

Hi Ajay,

I will share some ideas, which are either my ideas or read from somewhere [Please bear with it, if they seem silly]

Strengths:
-- Huge profit ( seems with Margin trading, the opportunity is unlimited )
-- Own business; freedom to mind our business as we wish.
-- Killing addictive
-- Entertainment ( seems mostly for Gamblers )

Weakness:
-- Great loss of money.
-- Sitting before the screen whole day.

Opportunities:
-- With its popularity for quick profits, most begineers go for it, without any strategy (I've seen lots of such people in person. They do day trade, but without any strategy. I was shocked to hear one case: He sees the ticking prices and buys when the price goes above the "Weighted avg. price" which is displayed on his screen; and he will go short when the prices goes below it! He even dont know anything else. Pure gambling.)

Threats:
-- Fear of no back up job. ie day trading will be his primary job with full time devoted to it. He is forced to get profits out of it, to make for a living.

Praveen.

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