How to find one's Nische?

sh50

Active Member
#1
In the book "Market Masters", author Jake Bernstein states "What you do in the market must suit your temprament and personality", "Find your own place", "Play your own game". More or less the same thing is written in other books. How does one do this practically in Technical analysis.


Only when you play the game- football or hockey or cricket for instance, can you know where your competence lies. In books on vocational psychology on job misfits too, it is given that mere knowing and knowing-in-doing are two different things with the latter being naturally more effective.


Knowing in doing in the context of Techincal analysis would entail buying expensive software like Advanced Get and figure our which(Elliot and dow theory) suits you since Metastock does not offer Elliot wave.This is something like marrying a woman and then trying to figure out whether your marriage is compatible or not. The CEO of the world's leading trader education wrote to me that they offer an even better solution than Advanced Get. Programming being very tedious, people would create software only for a good potential market.


Then again,most techincal analysts claim their system to be the best and rubbish others which is strange considering the fact that in the book two rich and famous traders are saying contrdictory things. A majority of these world famous traders worked with two-three mentors before they succeded. Even to do which type of trading is subjective.

From where can one get good guaidance and mentoring in India where there is no structured education and everybody knows things in bits and pieces and act according to their petty vested interests?
 

Traderji

Super Moderator
#2
sh50 said:
In the book "Market Masters", author Jake Bernstein states "What you do in the market must suit your temprament and personality", "Find your own place", "Play your own game". More or less the same thing is written in other books. How does one do this practically in Technical analysis.
sh50,

The best way to find yourself your your niche is to actully put money in your trading system or ideas! It takes most traders anywhere from 3-5 years to discover what works for them and suits their own mental makeup.

Have you actually traded the markets with your own money yet? and what about the results? Have you kept a record of the trades?

If you have then go through the records and figure it for yourself on how to improve upon it. That is the best way any individual can become a professtional trader.

Learning to trade is a combination of being exposed to ideas plus practical experience watching the markets on a day-to-day basis. This is not something that can happen in only a few weeks or months. On the other hand, you can become a great trader even with only average intelligence. Professional trader and money manager Russell Sands describes the makeup of a successful trader: "Intelligence alone does not make a great trader. Success is equal parts of intellect, applied psychology, practice, discipline, bankroll, self-understanding and emotional control."

Furthermore, to be successful you don't have to invent some complex approach that only a nuclear physicist could understand. In fact, successful trading plans tend to be simple. They follow the general principles of correct trading in a more or less unique way.

Mathematical analysis of historical market price action has shown that price changes are primarily random. There is a small trend component in most price action, however. It is this trend ingredient that allows traders to make money . . . but only if they follow trends.

Those who try to anticipate changes in trend rather than follow establish trends are doomed to failure. In addition, with only a few exceptions, trying to find bargains by buying weakness and selling strength is likewise a prescription for eventual disaster.

You get more ideas for your money from books. But don't assume that just because someone famous has written a book, all the ideas in it actually work. One of the unknown reasons why so many traders lose is that most of what you read in books, what I call "the conventional wisdom of trading," doesn't work. You must be extremely skeptical about everything you read. Insist on a rigorous demonstration that when the ideas are applied continuously for many years, they lead to profits. You almost never find this kind of proof in books.
 

sh50

Active Member
#3
Very nice reply. Thanks. The time period(3-5 years) apart, don't you feel that you should also be doing this initially under the guidance of an expert or an experienced trader.

Majority of people are against Elliot wave and so we go alongwith you. If the world's leading trader educationsist claims 85% success rate( could be sales talk but from an educationist?), what does one make of it?
 

Traderji

Super Moderator
#4
sh50 said:
Very nice reply. Thanks. The time period(3-5 years) apart, don't you feel that you should also be doing this initially under the guidance of an expert or an experienced trader.
Even if an expert or an experienced trader would be willing to spend the time with you, it would not necessarily make you a successful trader. You might not have the capital necessary to trade the way they do. You would definitely not have the years of experience they had developing their successful approach. You might not have the personality profile necessary to execute their style of trading.

To become a successful trader, you have to DISCOVER yourself and the only way you can do that is by trading real money in the markets!
 

sh50

Active Member
#5
What your are saying makes sense. I read that the world famous traders had 2-3 m3ntors each. They probably worked under them in some trading firm I suppose.
 
#6
Traderji said:
To become a successful trader, you have to DISCOVER yourself and the only way you can do that is by trading real money in the markets!
Trading is much like learning a risky sport, such as motocross, skateboarding, or skiing. In these sports, you play by yourself and try to stretch the limits. But if you try to perform beyond your skill level, you'll get hurt. If you try to make a jump before you even know how to maneuver around basic obstacles, in all likelihood, you'll fail when you make an attempt. It's better to take it slowly. Build up your skills through practice and preparation before trying something too difficult. This is a commonsense approach, but when it comes to trading, few follow it. It's as if they are thinking, "That doesn't look very hard. What can go wrong?" A lot can go wrong, however. If you risk too much money without taking proper precautions, you can take a substantial hit to your account, and be unable to recover. As with many things in life, it is wise to take slow, easy steps before taking a big risk and falling hard.
I have discovered MYSELF over the last 6-8 months after years of frustration in trying to figure out how to reinvent the wheel (in terms of making money in the markets).

I think sh50 has two choices:

Spend 3-5 years discovering yourself. You may or may not be successful after that.

However if your objective is in just generating returns on your capital (like me), go for a newsletter subscription (thats how I discovered myself)!

Just my humble suggesstion!
 
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#7
arun said:
I have discovered MYSELF over the last 6-8 months after years of frustration in trying to figure out how to reinvent the wheel (in terms of making money in the markets).

if your objective is in just generating returns on your capital (like me), go for a newsletter subscription (thats how I discovered myself)!

Just my humble suggesstion!
Hi,

Can I ask you to name the newsletter so that I can also benefit ?

Thanks and Regards,
Snowy
 
#8
snowy said:
Hi,

Can I ask you to name the newsletter so that I can also benefit ?

Thanks and Regards,
Snowy
Hi,

I use two newsletter from tradersedgeindia.com

One is the trend trading newsletter using which I invest about 80% of my capital.

The other is the swing trading newsletter which I use for trading with the balance 20% of my capital.

I notice that the trend trading newsletter generates very good profits on long term delivery trades. I always have a portfolio which is based on the signals from this newsletter.

The swing trading newsletter is excellent for short term trading (according to them, between 2-5 days). This involves more active market involvement and has worked out pretty well in this recent market move.
 

sh50

Active Member
#9
Good suggetions. Thank you.

Only problem is that as investors, we always do some self verification, study the balance sheet before taking the plunge. In Newsletters, specially technical, reasoning is rarely given. That makes one a little unconfomfortable. Everything is fine when there are profits. What hapeens when one suffers a loss? There has to be some accountability.

One also likes to evolve as a human being and is looking for both reward}(money) and award( Job satisfaction- learning opportunities). There is no newsletter which caters to both.
 
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#10
sh50 said:
Good suggetions. Thank you.

Only problem is that as investors, we always do some self verification, study the balance sheet before taking the plunge. In Newsletters, specially technical, reasoning is rarely given. That makes one a little unconfomfortable. Everything is fine when there are profits. What hapeens when one suffers a loss? There has to be some accountability.
You have a point there sh50. However in the trend trading newsletter the maximum loss that one has to suffer if the trade goes wrong is just 0.50 to 0.75% of ones trading capital. This is one of the primary reasons that got me convinced to subscribe to this newsletter. And now I am glad that I did it.
 

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