luck based trading

[XRAY27]

First of all you need to know ,how pro’s work..mostly they are mechanical traders aka systematic traders, they test there system (back test) for whole cycle,number of trades if intra will be limited 1..in rear case 2 trades,swing 5 to 6 trades per month

There main strength is knowing there system weakness, mostly we lack all of this qualities..end up in day dreaming, spend whole day in punching trades

 

[moneymanager1980]

Some might have read .. just wish to share .. it is copied from a book ( i am still on the first few pages of that book ..basically myself is a slow learner ) that was upload by Traderji in resource section. seems worth reading..
-----
EXAMPLE OF SHOPKEEPER DALIP BHAI MALI: -
About ten years ago I went to a general store and asked some questions.
Shopkeeper Dalip Bhai Mali answers touched my heart. They helped me to
design my trading policy, and I found investing in the stock market like a retail
shopkeeper is a very successful policy.
The first question I asked him: “ In your retail shop do you have some
items which are not in demand and the items not sold in the last 2-3 years?” He
replied, “Sir, I have many items which have not sold since the last three years .”
( Then why we worry if our stock is not selling in 2-3 months?)
I asked him “ Are you ready to take a loss on these items if I offer you just
½ prices?
He replied “ No sir I sell these items only at a profit because one day
demand for these items may occur again. It happened so many times in the past,
and if I take the loss of these types of items, then I never make profits.”
( Remember his store item don't give him dividends, and my stock gives me
dividends because I always buy dividend paying strong companies stock.)
My third question to him:- “ Are you ready to buy more quantity of which
items that are not selling well?”
( In stock market language, the average out of the stocks when they fall)
He replied “No” and looked at me like I am the biggest fool in the world.
Now I asked him: “ What profit do you make on each item?”He replied:
“Nearly 15 % on each item that I sell.”
(Then why are we greedy about our stock returns?)
I asked again “Do you feel an emotional attachment to any profit making
item and think this is like gold, so you don't want to sell it at any price because
you think it will make you a millionaire if you hold it for a long time?”
The Shopkeeper looks at me with strangely, and in reply, he says me, “ Sir I
think you are not sleeping well, and you may require a visit to your
psychiatrist soon because no any shopkeeper in the whole world feels an
emotional attachment to any items in his shop.”
I laughed and felt sorry for asking such foolish questions and disclose to
him that I just wanted to compare my stock market business to his retail shop
business.
--

 

[moneymanager1980]

And slowly keep improving my learning and from friends .. some teaches and some scold . the saga continues .and (i think 8 or 7 years before from now) the loss finally reached 50 Lakhs .. though it not hurting me as I was very good in my job and other earning .. then one fine morning a ray of hope came .. not with great idea or any thing .. just with usual methods etc . only difference made is i allowed the profit making trade to run and extract maximum profit when i'm correct . when my trade is correct i became merciless and keep on betting .. suddenly the small left over cash in my trading account starts growing at unprecedented speed and in just 2 months the whole game changed and i was in green more than 15 lakhs after completely recovering my 50 Lakhs
the lesson learned : when u r correct make as much money as possible
but some more lessons failed to learn .. and the story continues

some 7 years ago .. after suddenly made around 65 lakhs in three months ( recovered the 5o lakhs loss and 15 lakhs extra ) i felt i am top of the world .. all my humbleness gone in air .. my humiliation of loss of eight years just gone out from mind. just felt game over and I am on the way of my financial freedom.. jumping on joy . saying whatever i want and gave no rooms to others .. it all last just 15 days .. the first jolt came and lost some 20 to 25 lakhs in the next one month . then gain some and loss some and game goes on.. and in next six months after recovery, lost all to the market . back to square one of 50 lakhs loss. now start mobilising fresh money and game continues and losses against keeps growing and it goes like 52 lakhs , 55 lakhs etc .. it reached around 6o lakhs .. That was modi-I election period .. But my sorrow doesn't go away. keep trading and loss keeps on going up and coming down and again going up . Then came 2015 when I lost my job. when in Job and when get salary these losses looks manageable. the moment salary stops .. real problem of these losses stands like mountain. the moment lost the job the mist so far surrounding clears and reality became more visible ..
story continues ..

 

[marimuthu13]

some 7 years ago .. after suddenly made around 65 lakhs in three months ( recovered the 5o lakhs loss and 15 lakhs extra ) i felt i am top of the world .. all my humbleness gone in air .. my humiliation of loss of eight years just gone out from mind. just felt game over and I am on the way of my financial freedom.. jumping on joy . saying whatever i want and gave no rooms to others .. it all last just 15 days .. the first jolt came and lost some 20 to 25 lakhs in the next one month . then gain some and loss some and game goes on.. and in next six months after recovery, lost all to the market . back to square one of 50 lakhs loss. now start mobilising fresh money and game continues and losses against keeps growing and it goes like 52 lakhs , 55 lakhs etc .. it reached around 6o lakhs .. That was modi-I election period .. But my sorrow doesn't go away. keep trading and loss keeps on going up and coming down and again going up . Then came 2015 when I lost my job. when in Job and when get salary these losses looks manageable. the moment salary stops .. real problem of these losses stands like mountain. the moment lost the job the mist so far surrounding clears and reality became more visible ..
story continues ..

Still you are going with less momentum when compared with me..

 

[moneymanager1980]

Still you are going with less momentum when compared with me..

No idea .. how to react .. laugh or feel sorrow ..

 

[malhotra527]

One thing that you must learn is that trading is not luck based. It requires a lot of skill and knowledge to generate good returns and be a successful trader . Hence saying that you are trying your luck is not justified. Another thing is that trading is not something you will learn in a few days or months. Only with time, patience and experience you will be able to get a hang of it. So stay calm and explore as much as you can .

 

[moneymanager1980]

One thing that you must learn is that trading is not luck based. It requires a lot of skill and knowledge to generate good returns and be a successful trader . Hence saying that you are trying your luck is not justified. Another thing is that trading is not something you will learn in a few days or months. Only with time, patience and experience you will be able to get a hang of it. So stay calm and explore as much as you can .

ya true .. trading is not an easy job .

i already spent a decade bro in this .. still not able to get any grip .. floating like a suspended particle.. frankly speaking feeling bad why i entered in to this .. would have had a very different life if not got ventured in stock market. anyway we need to jump the well completely at least for safety ..

 

[DanPSup]

ya true .. trading is not an easy job .

i already spent a decade bro in this .. still not able to get any grip .. floating like a suspended particle.. frankly speaking feeling bad why i entered in to this .. would have had a very different life if not got ventured in stock market. anyway we need to jump the well completely at least for safety ..

Do the final thing you have to do in your life to get to the point. I do not know what it will be, but you will know exactly where the problem is. Now do the final thing with all its consequences or leave it and become successful in what ever you are the best. That's how life works.

 

[marimuthu13]

ya true .. trading is not an easy job .

i already spent a decade bro in this .. still not able to get any grip .. floating like a suspended particle.. frankly speaking feeling bad why i entered in to this .. would have had a very different life if not got ventured in stock market. anyway we need to jump the well completely at least for safety ..

Have you ever created a single trading system During your 10 years tenure ?? With clear rules for Entry, SL target etc ...

If yes, have you backtested that trading system with atleast one year data to prove , its successful system?

 

[moneymanager1980]

Do the final thing you have to do in your life to get to the point. I do not know what it will be, but you will know exactly where the problem is. Now do the final thing with all its consequences or leave it and become successful in what ever you are the best. That's how life works.

this morning when i saw a beggar ( old man and felt bad for him ) with full of hair like forest in his head ( may be have no money to go saloon) and contrary I feel so sad abt my fast approaching baldness.
Suddenly understood there is no loss in life account. what ever we have must be credited in to positive pages. May be the negative page will open if we do harm to others . felt light abt losses in Trading too .
coming back to our discussion .. sorry not able to understand your comment clearly.