Dear Day Jobers
Day trading is generally considered as a full time profession. However using mobile trading app’s alerts you can take a 10 minutes break to place an intraday order. Here is the step by step explanation of the Day Jober's Day Trading Strategy:
1. SIDEWAYS MARKET : Yesterday’s price range between High/Low is Today’s Sideways Market. Within this price range market is directionless, purposeless and hence unpredictable.
2. TRADING ZONES : Sideways market is suitable for scalping which is a full time day trading profession. Trend trading is effective outside the sideways market which is suitable for both full time traders and Day-Jobers.
3. UNPREDICTABILITY : Trend trading strategies are less effective within the sideways market since it is unpredictable. Remember, the only LEVELS that must be of a day trader’s concern are yesterday’s High/Low.
4. PREDICTABILITY : Index charts/graphs are smoother and more predictable than stocks/currency/commodity charts because it is where big players are investing in stock trading.
5. PROFITABILITY : Options trading on Index have the potential of six figure income due to its generous volatility.
6. AUTOPILOT : Indicators (statistical tools) are less accurate in predicting the trend.
7. MANUAL : Price Actions are more accurate in predicting trend. “Manual driving is always more accurate than autopilot mode.”
8. ALERT : Set two alerts on your mobile trading app for bullish/bearish crossover of yesterday’s high/low.
9. ENTER TRADE : After receiving the alert message take a 10 minutes break in your day job. Look for your favourite Price Actions signals on Index chart. Enter trade (intraday) in Options (ITM Strike Price) on your signal with 5% floating stoploss. (Notes : 1. Options trading has the potential of 10% to 15% profit per trade and needs 5% stoploss to accommodate the generous volatility of options. 2. Taking position overnight is vulnerable to gap-ups and gap-downs and extremely risky for options trading. 3. Investment for Options trading is fractional compared to trading on Index. World thinks Options trading is the most risky one. When you invest small and gradually multiply your investment, it becomes reasonable risk)
10. MINDSET : Develop a positive mindset and be patient with your trading results. A couple of back to back losses are normal in trading. Profits are made only in long term.
You may call these as TEN COMMANDMENTS of Day Jober’s Day Trading!
NOTES FOR FULL TIME TRADERS
A more profitable exit strategy (instead of relying only on floating stoploss) is to look for bearish signal when trading a bullish trend and vice versa. A spike in the price can also be exit point because spikes usually take u-turn in trend.
IS THIS STRATEGY OVERLY SIMPLE?
Academic definitions of any business, including the stock market, are highly inefficient. Need proof? 99.99% of MBAs are day Jobers, not business people. In other words, academic knowledge failed miserably to create businessmen. It is this academic language that makes stock market look extremely complex. Why so? Because academics are good in science but not in art. Business is an art. Stock trading is a business. Can you see the connection?
WHAT ABOUT FINANCIAL INSTITUTIONS AND HEDGING FUND MANAGERS?
Well, hedging has inbuilt-edge with a moderate profit potential which is suitable for medium to large investment. It has nothing to do with academic qualifications of the Hedge Fund Managers.
ART OF TRADING
“When you ask creative people how they did something, they feel a little guilty because they didn’t really do it, they just saw something. It seemed obvious to them after a while.”
Steve Jobs
I connected various aspects of stock trading and presented the ten commandments as an insight for day traders.
WHY MORE THAN 90% OF STOCK TRADERS LOSE MONEY?
Because more than 90% of world population are too lazy to imagine.
WHAT ABOUT CRITICS OF TEN COMMANDMENTS?
They are those who strongly believe that trading is a technical skill rather than a business skill or in other words a creative skill. Their lips will say “Trading is a business” but their hearts won’t believe that Business is an Art… They lack big picture of stock trading. Ten Commandments is a holistic approach to Day Trading.
ARE PRICE ACTIONS TECHNICAL SKILlS OR ART?
Price actions begins as technical skills and develops into an “Art of Plain Chart Reading”, without any indicators.
WHAT IS A BUSINESS SKILL?
It is an art of treating investment as a baby. In other words it is an art of investing responsibly, which is making investment as an informed decision, where collecting the knowledge and connecting the knowledge are given equal priority. That is called connecting the dots, or simply creativity. Art is simply a highly evolved version of creative skills.
IS MARKET ANALYSIS NEEDED FOR DAY TRADING?
Both swing trading and day trading are purely art of reading plain chart, without any indicators. It is the academic mindset that makes some swing traders to think market analysis is needed. Most day traders would agree that market analysis is not needed for day trading.
WHY NOT SWING TRADING?
For the simple reason that gap-ups and gap-downs between two trading days are not only high risk but also affect the peaceful sleep of traders due to overnight positions.
ARE GURUS/BOOKS ON STOCK TRADING GOOD?
Those gurus/books treat stock trading as technical skills which is not a holistic or healthy approach because trading is a business skill and is an art.
WHAT WOULD HAVE STEVE JOBS TOLD THE WORLD IF
HE WAS A STOCK TRADER?
“We (traders) are Artists!”
ALL THE BEST
Day trading is generally considered as a full time profession. However using mobile trading app’s alerts you can take a 10 minutes break to place an intraday order. Here is the step by step explanation of the Day Jober's Day Trading Strategy:
1. SIDEWAYS MARKET : Yesterday’s price range between High/Low is Today’s Sideways Market. Within this price range market is directionless, purposeless and hence unpredictable.
2. TRADING ZONES : Sideways market is suitable for scalping which is a full time day trading profession. Trend trading is effective outside the sideways market which is suitable for both full time traders and Day-Jobers.
3. UNPREDICTABILITY : Trend trading strategies are less effective within the sideways market since it is unpredictable. Remember, the only LEVELS that must be of a day trader’s concern are yesterday’s High/Low.
4. PREDICTABILITY : Index charts/graphs are smoother and more predictable than stocks/currency/commodity charts because it is where big players are investing in stock trading.
5. PROFITABILITY : Options trading on Index have the potential of six figure income due to its generous volatility.
6. AUTOPILOT : Indicators (statistical tools) are less accurate in predicting the trend.
7. MANUAL : Price Actions are more accurate in predicting trend. “Manual driving is always more accurate than autopilot mode.”
8. ALERT : Set two alerts on your mobile trading app for bullish/bearish crossover of yesterday’s high/low.
9. ENTER TRADE : After receiving the alert message take a 10 minutes break in your day job. Look for your favourite Price Actions signals on Index chart. Enter trade (intraday) in Options (ITM Strike Price) on your signal with 5% floating stoploss. (Notes : 1. Options trading has the potential of 10% to 15% profit per trade and needs 5% stoploss to accommodate the generous volatility of options. 2. Taking position overnight is vulnerable to gap-ups and gap-downs and extremely risky for options trading. 3. Investment for Options trading is fractional compared to trading on Index. World thinks Options trading is the most risky one. When you invest small and gradually multiply your investment, it becomes reasonable risk)
10. MINDSET : Develop a positive mindset and be patient with your trading results. A couple of back to back losses are normal in trading. Profits are made only in long term.
You may call these as TEN COMMANDMENTS of Day Jober’s Day Trading!
NOTES FOR FULL TIME TRADERS
A more profitable exit strategy (instead of relying only on floating stoploss) is to look for bearish signal when trading a bullish trend and vice versa. A spike in the price can also be exit point because spikes usually take u-turn in trend.
IS THIS STRATEGY OVERLY SIMPLE?
Academic definitions of any business, including the stock market, are highly inefficient. Need proof? 99.99% of MBAs are day Jobers, not business people. In other words, academic knowledge failed miserably to create businessmen. It is this academic language that makes stock market look extremely complex. Why so? Because academics are good in science but not in art. Business is an art. Stock trading is a business. Can you see the connection?
WHAT ABOUT FINANCIAL INSTITUTIONS AND HEDGING FUND MANAGERS?
Well, hedging has inbuilt-edge with a moderate profit potential which is suitable for medium to large investment. It has nothing to do with academic qualifications of the Hedge Fund Managers.
ART OF TRADING
“When you ask creative people how they did something, they feel a little guilty because they didn’t really do it, they just saw something. It seemed obvious to them after a while.”
Steve Jobs
I connected various aspects of stock trading and presented the ten commandments as an insight for day traders.
WHY MORE THAN 90% OF STOCK TRADERS LOSE MONEY?
Because more than 90% of world population are too lazy to imagine.
WHAT ABOUT CRITICS OF TEN COMMANDMENTS?
They are those who strongly believe that trading is a technical skill rather than a business skill or in other words a creative skill. Their lips will say “Trading is a business” but their hearts won’t believe that Business is an Art… They lack big picture of stock trading. Ten Commandments is a holistic approach to Day Trading.
ARE PRICE ACTIONS TECHNICAL SKILlS OR ART?
Price actions begins as technical skills and develops into an “Art of Plain Chart Reading”, without any indicators.
WHAT IS A BUSINESS SKILL?
It is an art of treating investment as a baby. In other words it is an art of investing responsibly, which is making investment as an informed decision, where collecting the knowledge and connecting the knowledge are given equal priority. That is called connecting the dots, or simply creativity. Art is simply a highly evolved version of creative skills.
IS MARKET ANALYSIS NEEDED FOR DAY TRADING?
Both swing trading and day trading are purely art of reading plain chart, without any indicators. It is the academic mindset that makes some swing traders to think market analysis is needed. Most day traders would agree that market analysis is not needed for day trading.
WHY NOT SWING TRADING?
For the simple reason that gap-ups and gap-downs between two trading days are not only high risk but also affect the peaceful sleep of traders due to overnight positions.
ARE GURUS/BOOKS ON STOCK TRADING GOOD?
Those gurus/books treat stock trading as technical skills which is not a holistic or healthy approach because trading is a business skill and is an art.
WHAT WOULD HAVE STEVE JOBS TOLD THE WORLD IF
HE WAS A STOCK TRADER?
“We (traders) are Artists!”
ALL THE BEST