Worst Mistakes in the market

sh50 · #1 20th April 2005, 08:30 AM

Joy Mitali has set a wonderful precedent by giving a personal example of a transaction and letting us learn from his mistakes. The stockmarket as it is in general can be quite perplexing and confusing. Apart from "Wise men learn from the mistakes of others, fools from their own" there is a saying that "Those who don't follow/know history are condemned to repeat it".

One of the worst mistakes made in the stock market was being impressed by the capital:reserves ratio of one Nahar group company. We invested quite heavily in that thinking that it was an ideal Bonus candiadate. That never happened and in a bearish mkt the share to came crashing.

Everybody has stories on "Making hay while the sun shines". In the Bull market boom four years ago, we had invested well in Zee Telefilms when it was around 1500 but burnt our fingers badly. Another share that came a cropper was DSQ software.

Just as we share info on brokers and other service providers, sharing personal experiences, we can help each other and people totally new to the mkt-"lambs to the slaughter". Joy really lives up to his name and I hope we follow his example. (Living up to his name)

Traderji · #2 20th April 2005, 12:45 PM

One of the biggest mistakes most traders make is that they are too concerned with what the market might do.

To be successful in trading you need only be concerned with what the market is doing!

sh50 · #3 20th April 2005, 09:49 PM

I second that. what the market is doing and adjust yourself accordingly. For trading in particular, constant adjusting to mkt is required instead of being obsessed with forecasting.Also not be too obsessed with analysis. With the kind of info freely avaliable and the indicators in TA, newcomers can easiy become victims of paralysis due to excess analysis.It is clealy a case of remedy being worse than the disease.Financial intellectuals are not probably the best money makers any more than phd in Management the best managers. Mr Ashwani Gujral constantly stresses on being like Virendra Schewag rather than any cricket commentator.

RajK · #4 21st April 2005, 09:25 AM

“Knowing how to approach and play the game of trading well will only take you part way to ultimate success.

Knowing “how” to trade only makes you potentially competitive. … It is always the actual acting that produces the results, not the knowing how to act.

Knowing is not acting. Thinking is not acting. Planning is not acting. Wanting to act is not acting. Only acting is acting.

Most analyst at broking outfits and in the media have only reached the stage of knowing how to act!

Where do you place yourself??

Mohan · #5 21st April 2005, 09:36 AM

“One of the primary reasons individual traders fail is an inability to act freely and decisively.

Freedom in action comes about when fear has been minimized. Trading small and diversifying neutralizes fear … . Decisiveness in action comes from clarity.

Clarity is achieved through an understanding of natural laws and the resulting probabilities.

kannamthanam · #6 21st April 2005, 11:34 AM

Some o the mistakes in my trading career that I would never forget -
once I shorted the scrip BPL on a technical signal without a standing stoploss order and it hit the upper circuit continuosly for several days causing a damage of over a lakh as it went for auction (later I came to know that Harshad Mehta and cronies had taken a position in that scrip and it was taken to dizzy heights in a scandal that resulted in the management being banned from Capital mkt by Sebi).

I purchased a large chunk of dsquare ( later changed to Square D ,as coming from Dinesh Dalmia - DD) around 30rs and it kept within 20 to 70 range or a long time while I did no trading in it but sent the physical shares and had them transeferred to my name.Then suddenly it started getting active and I thought I was making a killing by selling out the whole lot at around 150rs. I could never forgive myself as I kept watching the scrip zooming to about 2800 in the bull run in 99- I still keep counting the crores that were mine if only... ( it does not change the least bit even though the scrip value came back to single digits and DD is absconding/ evading arrest)

Now my trading is largely confined to index futures and sometimes I do miss all the excitement of those years of stock trading !

K Kannamthanam

Similar Threads for: Worst Mistakes in the market
Thread	Thread Starter	Forum	Replies	Last Post
An anatomy of the Stock Market! - Bull & Bear Market Cycles	Traderji	Trading Psychology	57	Yesterday 02:32 PM
silver prices.	shakti	Commodities	5	11th August 2007 06:36 PM
The market is like a lady	sh50	Equities	2	17th April 2005 12:01 AM
Interesting Stock Market Quotes	sh50	Words of Wisdom	0	29th September 2004 10:09 PM
Is Market Prediction Possible?	TATrader	Current Affairs	0	12th May 2004 10:00 AM