Important Posts by Smart Trade_ Part1

[Gaur_Krishna]

This schedule is fine on weekends and holidays. But on working days if one stays awake till 2:00 in the morning, you wont get sound sleep needed for next days trading / office work and you will feel tired and exhausted all through the day. This will result in missing few trades/overstaying in them or both.

Trading requires concentration ,focus and healthy mind and body.

Smart_trade

 

[Gaur_Krishna]

I remember having read one article by a very successful scalper and daytrader in US markets. His mother was working in a brokers office and as a child he used to go to her office and used to see those young traders with good clothes and style and he always used to think that trading must be pretty easy...just come at the market open...trade for next few hours and then you have all the money and time to enjoy life after the market ,buy expensive cars, perfumes etc.

After he became a trader himself, he knew what hard work goes into trading . He says he never drinks alcoholic drinks if there is trading the next day...but he as a member of group of successful traders gets invitation for lots of parties where all his trader friends used to drink, stay awake till midnight and next day come late to the market with heavy head,hangover, incomplete sleep , acidity and their whole day is wasted. Where as this trader used to go to the parties, with a drink in his hand he will mingle with his friends, eat some salads and simple food and at 10:30 he would throw his drink in the wash basin and go home and go to sleep. This helps him to mix with his friends but he says trading is a serious business and I have to be in the market with full concentration and fitness next day and he used to be fresh and fit where as his trader friends still recovering from headache and hangover and loss of sleep.

The above speaks a lot about that trader and his attitude towards his profession ie trading.

Smart_trade

===============================================================================================================================

Quote:
Originally Posted by techtrader2 View Post
Is this trader you ST?

No, I had read an article/interview of this trader...but I too follow these principles...if there is trading next day, no late nights parties and outings for me.Hard Drinks and smoking I have left long back.....

Smart_trade
===============================================================================================================================

 

[Gaur_Krishna]

Nothing in trading world will tell us with certainty what is going to happen in future. But TA tells us what is the trend so what are the probabilities of price movements, S/R so that we know what are support and resistances and that is all that is required for trading. Future need not be predicted ,no one can do it with any consistant accuracy..

If we are in uptrend and the market dips to a support area, we buy with a stoploss so if the support holds and the uptrend continues ( which has a strong probability) ,we make 2R,3R or more by taking risk =R . If the support does not hold, we loose 1R ....

This to me is a holy grail in trading.

Smart_trade

 

[Gaur_Krishna]

Trade on trends. Short term trend definately changed today to up above 6203....a buy there or in dips thereafter could have given good profits.

Smart_trade

 

[Gaur_Krishna]

Quote:
Originally Posted by timepass View Post
Why is trading difficult ?

Because :
1) Trading "with the trend" means "Buy high, sell higher". : That takes guts, to buy when the price has already risen. A retracement may be a reversal.
2) Trading "contra" means "Buy while it is going down". : That takes guts too. You want to wait for a retracement/consolidation before taking a decision.
Both the above are against common sense. That's why trading is so difficult, because you have to have very uncommon sense.

Answer by ST da :
One way to tackle this problem is buy 50 % on breakout....and buy 50 % in the first dip after the breakout provided the trend is still intact....and ride the move.

Smart_trade

 

[Gaur_Krishna]

Quote:
Originally Posted by AFORASTRO View Post
happy that you came out of the storm safe and sound......but i couldn't hold up so gave up early.was holding 6300 ce ......

======
One cannot be lucky to come out of storm safe and sound every time. Better way was buy calls or futures after the trend changed ie above 6200. Holding 6300 calls irrespective of whether market goes up/down and hoping that the 6300 calls come in the money is a risky play....what if the market would have remained below 6150-6170 ? or just sideways....That possibility was very much there.

Smart_trade

 

[Gaur_Krishna]

Today again the market proved that if we sense a trend day, then selling every rally and buying every dip does not help as there is a danger of loosing our position in such "fancy dancing"...just buy and hold till the end ,just watching that the trend is intact, is a way to go....but a very tough task needing tremendous mind control.

Todays market action has all the ingradients of a trend day. I had outlined those in one of my old posts.

Smart_trade

 

[Gaur_Krishna]

Originally Posted by AFORASTRO View Post
sir i have a question how can i come to know that 6200 level was trend changer.Sir was it physiologically or technically.

=====
Technical.....just see 3 min or 5 min NF chart. Very clearly seen there.But for that one has to understand what is a trend, how it progresses, how it reverses. There is always a definite chart point which tells you that the trend has changed.

Smart_trade

 

[Gaur_Krishna]

Right from the beginning today, the advance /decline ratio was very good with over 3 stocks advancing for every stock declining. This also was supporting that a big day is at hand.

I always keep an eye on A/D ratio and midcap index...that gives additional confirmation that the trend is strong and durable...it helps to hold and add to the positions.

ST

 

[Gaur_Krishna]

Being psychologist does not mean he has to think from psychological angle on everything in life. I am an electronics engineer but I dont go around with a soldering gun and ICs in public life....Remove psychologist from your head and dont be authoritarian. Just be a normal person and you will never get depressed and never feel helpless in life. Psychologists are high risk people...they can get into patients catagory very fast. ....

Smart_trade