General Trading Chat
- Thread starter timepass
- Start date
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Fine as ever friends..TP shot a bear at me..ha ha.
Lot of me changed ..In terms of my personal life n markets.
Did a PhD style mapping on
Human psychology n behaviour .
Human body language
Pharmacy
Nutrition
In terms of market,
Well quite interesting. .turned a full circle from Fno to investor. Will share the reason n results later but let me tell you one imp discovery ..
You won't make it to the top of world trading .
This research included jacking to the depths of the markets to find out the biggest tax payers from the financial world from traders n invester fraternity .
Couldn't find a single trader around the world who claimed to be billionaire but a long list of investors who have made it even in India.
Putting it in simple terms,I interviewed many professionals n small time traders n invester with a simple set of questions n as expected, not a single trader or day trader having a story to motivate but found many who have invested especially in quality small n midcaps .
Lot of me changed ..In terms of my personal life n markets.
Did a PhD style mapping on
Human psychology n behaviour .
Human body language
Pharmacy
Nutrition
In terms of market,
Well quite interesting. .turned a full circle from Fno to investor. Will share the reason n results later but let me tell you one imp discovery ..
You won't make it to the top of world trading .
This research included jacking to the depths of the markets to find out the biggest tax payers from the financial world from traders n invester fraternity .
Couldn't find a single trader around the world who claimed to be billionaire but a long list of investors who have made it even in India.
Putting it in simple terms,I interviewed many professionals n small time traders n invester with a simple set of questions n as expected, not a single trader or day trader having a story to motivate but found many who have invested especially in quality small n midcaps .
The perennial definition deficit syndrome... What is a trader / investor ? Anyone who trades in the share market is a trader. Gone are the days when you bought shares in IPO at face value. Now it's about "book value". A so called "investor" is also a trader, who just has a higher timeframe. No individual (except maybe the venture capitalist) is "investing" directly into the business.
Everyone putting his money in a financial system is always right to define himself as a trader,investor,speculator, etc because he believes he is one of them till the market replaces his beliefs with a new fact which replaces his belief to a new one.
For example if a small kid is shown a helicopter labelled as car for months together,he will start believing that it's called a car n will even try to defend his belief when debating with his friends till one of them proves him wrong n he accepts the fact that it's indeed called a helicopter ..belief Replaced !with a new fact
For example if a small kid is shown a helicopter labelled as car for months together,he will start believing that it's called a car n will even try to defend his belief when debating with his friends till one of them proves him wrong n he accepts the fact that it's indeed called a helicopter ..belief Replaced !with a new fact
Don't get me wrong between the toes of trader ,investor superiority . many traders have carved a niche for themselves.
I have highlighted the fact which replaced my belief.
Flashback 1992 Harshad Mehta led Bill run lured me to make a quick buck.
Lost 5000 rs .
2001 bull run led by Ketan Parekh.
Saved myself as the bruise of 1992 had taught me a lesson. .learnt.
Got passionate with charts n developed my own trading signals (shared here).
2005 started to view markets passionately with a goal to make it big financially but believed that trading could make me rich faster than waiting with investments for years with 100 percent money compared to 15 % margin in futures.
Started positional trading in NIFTY futures on the basis of charts till August last here.Made decent gains all these years with some years of losses.
What happened in September last year?
All these years I used to follow closely who made it big to the big club.Rakesh Zhunzhunwala,Ashish Kacholia,Porinju,Raamdeo Agarwal, Vijay Media,Dolly Khanna to name a few.The wealth creation of all these rags to riches story prompted to replace my belief in believing that investing is better than the thing I was doing uptil now.
Within these belief I started writing my own rules rather than blindly investing in the above names because one has to keep it in mind that a Best bear is always waiting at your doorstep while you are partying within.
I have highlighted the fact which replaced my belief.
Flashback 1992 Harshad Mehta led Bill run lured me to make a quick buck.
Lost 5000 rs .
2001 bull run led by Ketan Parekh.
Saved myself as the bruise of 1992 had taught me a lesson. .learnt.
Got passionate with charts n developed my own trading signals (shared here).
2005 started to view markets passionately with a goal to make it big financially but believed that trading could make me rich faster than waiting with investments for years with 100 percent money compared to 15 % margin in futures.
Started positional trading in NIFTY futures on the basis of charts till August last here.Made decent gains all these years with some years of losses.
What happened in September last year?
All these years I used to follow closely who made it big to the big club.Rakesh Zhunzhunwala,Ashish Kacholia,Porinju,Raamdeo Agarwal, Vijay Media,Dolly Khanna to name a few.The wealth creation of all these rags to riches story prompted to replace my belief in believing that investing is better than the thing I was doing uptil now.
Within these belief I started writing my own rules rather than blindly investing in the above names because one has to keep it in mind that a Best bear is always waiting at your doorstep while you are partying within.
Probably the power of compounding translates better in investing for most people even on large capital for lack of psychological hinderance than for most people solely involved in trading. As they say in trading, it is difficult to achieve similar returns on a large capital as may be on a small capital.
Vivek
Vivek
Hello Sudoku,welcome back......
If you observe the rise of the big club and the names you mentioned, in over 90 % cases they have some other income stream and the money they earn from there they invest and multiply.....be it broking income,arbitrage,PMS,managing others funds and getting fee and profit sharing .They don’t depend on investing income to run their household expenses. Most of these names were direct/ indirect ( meaning through some other name ) Brokers of BSE or NSE and their daily income was much over Rs 1 L when most of us were earning salaries of Rs 5000 per month....so they has the critical mass of money which they invested and multiplied due to their excellent stock pickings.....they had huge drawdowns too...read Ramdeo Agrawal’s interview and you will know a few large drawdowns he suffered.
We as lesser mortals don’t have any other income stream so we have to generate the critical mass by trading and then invest that money for wealth creation....as the wealth increases,your trading commitment reduces and one commits more capital to investments....but base capital has to come from trading....as our base capital is small, we can never be in Rs 10,000 Cr league but with trading and then investing we can make ourselves totally financially independent and can reach a stage where even if we don’t earn a single rupee from trading,our investments ( in stocks,real estate,other businesses) will provide us income flow to have a very comfortable lifestyle....
Looking forward to your further posts detailing your important findings on the subject.
Smart_trade
If you observe the rise of the big club and the names you mentioned, in over 90 % cases they have some other income stream and the money they earn from there they invest and multiply.....be it broking income,arbitrage,PMS,managing others funds and getting fee and profit sharing .They don’t depend on investing income to run their household expenses. Most of these names were direct/ indirect ( meaning through some other name ) Brokers of BSE or NSE and their daily income was much over Rs 1 L when most of us were earning salaries of Rs 5000 per month....so they has the critical mass of money which they invested and multiplied due to their excellent stock pickings.....they had huge drawdowns too...read Ramdeo Agrawal’s interview and you will know a few large drawdowns he suffered.
We as lesser mortals don’t have any other income stream so we have to generate the critical mass by trading and then invest that money for wealth creation....as the wealth increases,your trading commitment reduces and one commits more capital to investments....but base capital has to come from trading....as our base capital is small, we can never be in Rs 10,000 Cr league but with trading and then investing we can make ourselves totally financially independent and can reach a stage where even if we don’t earn a single rupee from trading,our investments ( in stocks,real estate,other businesses) will provide us income flow to have a very comfortable lifestyle....
Looking forward to your further posts detailing your important findings on the subject.
Smart_trade
Hello ST.. thanks n how are you?
You are right that they have other stream of income but what I find interesting is that as strugglers they were solely confident in their belief that they can make it.Its after a stream of mistakes n failures they reached a point where a few failures doesn't actually make a visible impact.
Our self worth is directly related to our beliefs .If I believe that it is not possible to make it big investing ,I won't ! because that believing process itself restrains me from moving closer to my goals n ultimately I would look at examples which match my beliefs n make the self fulfilling prophecy true.Till a couple of years back, everybody in my family believed that what I was doing is a waste of time n energy n they would pluck the examples of 1992,2001,2008 examples to showcase that you are doomed at the end of tunnel of stock markets.
WHY?they believed from whatever was herited as knowledge from Media,my grand parents,relatives,etc and automatically when someone with that kind of beliefs will extend it so by setting examples of those who failed
You are right that they have other stream of income but what I find interesting is that as strugglers they were solely confident in their belief that they can make it.Its after a stream of mistakes n failures they reached a point where a few failures doesn't actually make a visible impact.
Our self worth is directly related to our beliefs .If I believe that it is not possible to make it big investing ,I won't ! because that believing process itself restrains me from moving closer to my goals n ultimately I would look at examples which match my beliefs n make the self fulfilling prophecy true.Till a couple of years back, everybody in my family believed that what I was doing is a waste of time n energy n they would pluck the examples of 1992,2001,2008 examples to showcase that you are doomed at the end of tunnel of stock markets.
WHY?they believed from whatever was herited as knowledge from Media,my grand parents,relatives,etc and automatically when someone with that kind of beliefs will extend it so by setting examples of those who failed
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