Reminiscences of a trade-learner , journey to become a PRO

[oilman5]

8] a plan vs Method
...............................
Normally i see what to be done ,in detail as hypothetical case is a plan,method is how to implement with suitability.
In theory of PPC,production plannning and control,...........we are learnt first put desire outcome, then see resource availibility, then constrain of it, then comes scenario preparation ...........how to do something on that scenario on paper.Suddenly we find after experience,something suits someone better............
basic idea of METHOD starts.
A chess player use sp plan which suits him in a battle/a level playing competition among equals............suddenly he finds opponent is taking unnatural time to think.So he does not make game SIMPLE.ALLOW the opponent most to consume most imp resource....TIME.SO his winning method is deliberate complication to win by time.
But suppose he is up a KNIGHT, his method is simplification.........and use opponent to fight in close contour, allowing knght fork, even that fails ,use extra pc in endgame to capture pawn,............use extra pawn to QUEENING.
so method is something with comfortability.For example...........swing is a method , break out is a method.
how u will make money ........is a business plan . how much u risk,where to put stop........part of plan.
SWING METHOD .........suits comfortably with day/week time frame, naturally understand support,.........use discreation.
BREAK OUT ..........suits when understand RESISTANCE better, ......volume thrust, conditional suitability of market/stock.
so we know now at a natural resistance ............30% chance to fail.........so with volume thrust breakout possible. Another 70% chance to HOLD..........so swing short possible,......so depending upon actually scenario, we plan for both idea..............as situation favour or against .........book profit or predetermined loss,.....and move to another stock.

SOMEONE who has mastered............may play any one of above SWING/BREAK OUT, with programming to find out set up within N number of stock , and with particular set up , when price also confirms ..........just take predetermined size position and trade out of it......a best use of mechanical approach.

SMART

S SPECIFIC GOAL
M MEASURABLE GOAL
A ATTAINABLE
R REALISTIC
T TIME TO REACH DEADLINE

SYSTEM :
..............
MECHANICAL TRADE SYSTEM (MTS)

DISCREATIONARY TRADE SYSTEM (DTS)

HYBRID SYSTEM...(HTS)

DIFFERENT CONDITION OF MARKET
..................................................
1. RANGE BOUND MARKET PLAY PLAN
2. TREND MARKET PLAY PLAN
3. MOMENTUM BASED BREAK OUT PLAY PLAN
4. -MOMENTUM / AT TOP QUICK SHORT PLAN
..............................................
for intraday :3min/10min ma x...also 15min rsi has some use...big order coming in sell side has its impact.
............................................................
shortterm trade/ swing trade
............................................
here u must require eod . a software ..preferably some risk reward analysis
some low risk entry tactics and stop-umbrella to save from rain.

u have to define entry characteristic .
1. entry after break out over longterm resistance zone
2. after twice bounce in support ..price just starts moving up.
3. sector starts moving up..stock has good rel strength comparison within sector.

stop
......below 5% of last week low
if not 4% up move occurs within 5 trade days..use time stop

profit target 8-10% from entry..however after 5-6% price is NOT HOLDING
....get out with small profit...than turn profit into loss

for momentum base swing trade..refer David landry and Crabel works
for system study see beyond ta..by Tusher chande

position trade
......................
support base has to be created for a stock first.

another criteria..unexpected good result published and buy volume shows high demand.
As position trade is a judgement game..hit of the moment decision should NEVER be taken..infact temporary fall is a great buy oppurtunity.
You must have inbuild money management system to get out with small loss and addon winner.

 

[oilman5]

9] Role of media
.....................................................................................
Media normally we consider for INFO.............is basically a tool for marketing in finance industry.Normal gullible people dont understand abc of finance...........so get attracted by it on its AD,sometimes after being cheated ..........create bloc against it.
IN marketing technique...........interest has to be hyped also repeated.............after sometime,..........those who READ,..........may make believed by it......A powder can not change ur colour,a shampoo can make a little outshine to hair,.........all knows it,it is the food + natural color.........MORE IMP.
ALL CINE STARS,use wiggs /make up...........as per requirement of role,.............but fashion may be created.........by hype .........and young boys & girls(read NOVICE/FAN) may follow it ....Director/make up decides casting/role play.Role demand as fix....... make up, looking original. Similarly ur thorough knowledge on market may only TRAIN u to understand..........what is HYPE , by financial media.
Another case, not understanding NEWS...In normal news , is info of past considering current affairs, but in gossip.............of a company buy back, take over, a new product successfully tested.............now to be launched...ibasically NEWS.
So in rumor state.........if u could get,.........decipher it, based on your experience with higher chance of happening is REFER as NEWS,
Since stock market forward looking,..........thats why RESULT is meaningless,.........but forward guidance is NEWS.
Since operators /MF makes money out of new comers MISTAKE, heavily advertise before SELL......all things look excellent future..............READ forward earning of 3yr.
AND similarly when they BUY....suggest market is too risky,............U should WATCH and WAIT(they tell in media)......actually let me complete my buy)Many a times CEO also join in them by lure of making easy money ......and cycle goes on as if eternal truth.

So form part of system- around market top.....excessive hype by media,........ pl sell PORTFOLIO.
Businessline /Business std...........certain publish better economic report and ET sometimes write company sp RUMOR.
TV channels........r worst type,.............infact very easily opp. direction play is possible ,if u have RIGHT skill of execution.
Unfortunately in INDIA ,most technical analyst coming in MEDIA , are not passed CMT,(they r hype type- get paid for it) so ethics dont apply to them(quacks). We create hulla-bulla in media for........forgy DOCTORS/ pilots/food adultration...........but not against TA/media hype,.........and operators use them as per game plan.

 

[alex_26]

Thnx Oilman

Looking forwards for ur words of wisdoms.

 

[oilman5]

10] understanding financial model

(My background : trained by 2yr in ITM, attended course by BSE on financial model and from corporate bridge academy + CFA material reference.some basic idea in first page of thread-so some light will be touched upon )
......................................................................................
Actual user of financial models r credit rating institute/UTI/some broking house.......based on excel.Also used by Investment banker

In accounting we use past data, however in market ,its only on future and probability.
So we use basically forecasting model, and linear approach.......also growth model.
PREMISES are..........if studying ......past yr -3,-2,-1,........if u can reach o year ie. present base yr.
Similar forward looking estimate can help .......to predict FUTURE, atleast to some extent,.....then use an error band,..........u may REACH somewhere..........something is better than nothing.
we have 3 statement : balance sheet, profit & loss, cash flow.
Assumed we know their interrelation. In some industries............sales data is stable....so on it ,with tax rate 30% , capex growth nil, salary growth(expense ) 10% , material consumption cost 8%.........other factor....we get ............cost side. Now we increase 10 % sales growth,advertise cost 5% higher,.....we get some profitability. Against 15% growth , adding 8% capex........we further increase the model for
yr+1, yr +2,YR+3..............so a sensitivity is developed, however crude it may look.
Now from cashflow,..........creating o trouble,...........we may get an idea in ideal condition .Actual things start now.............WACC,various assumption on improvement on growth, non collection of actual money about 2%,inflation factor,............now may create a DCF, pl use a terminal value ,substract loan amount , u can get value of company ,........divided by number of share........u get worth of a share.

Damodaran has done good work ,,also Mckinsey model..........yet who shall apply it r too theoritician, also audit suggests.......management rarely gives True PICTURE. Also so many ifs and buts exist,with due respect to error factor and uncertainity,...........this is near impractical to trade by it alone, however getting job by this skill is good,.......also good for giving lectures,sellng financial products.
though very useful in INVESTMENT BANKING,
It helps for anchoring some valuation,..........so that hit of the moment,u should not pay high price to buy(losing objectivity)
BTW :some materials r copyrighted,but freely available in 4shared and torrent,......those who reqd may collect.
U may get pleasure out of calculation.....geting a final value,......more useful is SENSIVITY, and if u know to use P/E band ............with help of peer analysis in sectors
So for a company ,if it 3 different types of business , pl consider them separately as part1,part2,part3.........create their value , and then add to get total.
This model may work in FMCG, also in continuous steady growth for a company.
............But entirely FAIL in cyclic product , business environment changing.(hypothetically entity works for better, with sole aim to improve shateholders' value...........which is not true.
but this creates a micro model by which we understand a company..........and strength /weakness study helps to follow sustainability .
Never apply them in small cap, as data r prepared,[ unless u r the auditor..........to have access to real cash flow data.]
For a sector, relative valuation plays imp clarity............why a company is leader of a sector..........others r laggerd,............some company enjoys better p/e........darling of market.
.................
this model may help ,catagorically when u put..............sectorwise company.
1]fmcg
2]software
3]automobiles
4]pharma
5] fertilizer
6] paper
7] cement
8] steel
9]sugar
10] hotel
11]paint.......etc
any std magazine like capitalmarket is helpful.

 

[oilman5]

11] Time and its element
..........................................................................
All successful people have mastered it. Time management is must,..........starts with routine , developed by priority assignment ,ended with diary writing.
While u start, say around some knowledge on life at age 18(it may be 20,22,25,28,30,32,35,40,45,48,50 ,55.60............yes anything)..........a start pt,...
u have to see TIME AVAILABLE, with u ,to learn without any foul with your occupation(it may be student life, job, business life, housewife etc).
A fixed timeframe to acquire knowledge, a method to be practiced (to be experimented, better start with intermediate term trading).........a time to write DIARY on your experiment. U have to consider for long haul.
It shall not foul with your otherlife, attitude and ambition.
PROFESSIONAL trader means u plan to spend atleast 50hr/week on trade related approach. If u plan for partime .......depending upon availabletime(implementable).....it may take around 8yr(Earliest 1 yr pro=4yr of amateur).........to fully acquire/practice your trading suitability with market(syncronisation)
Now due to your time constraint,and some natural instint.....may already restricted u to choose , particular way of trade, say swing.intermedetiate, break out,..........still u must keep a time to improve horizon, to improve how to play in lower time frame,with similar concept,.........also what what stock can follow similar style,.........since its a build up process it takes TIME.
Normally nobody will give detail research done by himself.........though occassionally someone gives the gist.
For only daytrading.........time utilization ,may be different, more on waiting for RIGHT oppurtunity, accustomed eye, in realtime.......to execute , then developing a sense to danger. Infact as a master daytrader, u should not learn more ,but do honning ur skill.
For investment ........ imp is developing an eye as contrarian.
Master positional trader then develop another skill, multi timeframe analysis,........ie. how a bias of one timeframe can be carry forward to another.(fractal concept)
Some checks also various indicator,.......short term RSI holding above 60,........may suggest breakout is possible in higher timeframe.
Another critical study on time,........what worked on past...........shall work in future or NOT?
People underestimate the time it takes to succeed as a trader. Some people come here
and think they can sit with me for a week and become great traders. How many people
when they went to college would've thought to walk up to the professor and say, "I know
the course is for a semester, but I think a week should be enough for me ."
Gaining proficiency is the same in trading as in any other profession—it requires
experience, and experience takes time. A man few years ago asked me, "How long will it
take me to become a professional trader ?"
"Three to five years,at least" I said.

 

[oilman5]

13] why we r born to fail /but u can convert urself successful trader
............................................................................................................
Few parents wish their children,most r born by wedlock,........allah ka daan'..........but even by circumstances from early notorioty, rarely we find children as product of environment.........,strong will power is rare,astonishly death of parents produced ........some extremely rare survival quality, by which we may outshine.
Normally children r grown up with aim to fulfil parents' desire.........what they have not achieved,............fulfilment of dream.
As per society norms/schooling one goes through the stage.........respect/do's and dont, hatred, belongings........all this create a rational defination(a blockade in mind), which r against normal trade environment.
Infact cheating, discipline,freedom,taking money from weaker, self-centred........some natural trait u apply as trader.........r not natural.
Attribute of a cunnying fighter, principle of chanakya,...........should be baby's day ............for a child trader.
Unless u develop to be thrifty,..........how u trigger small stoploss?
Unless u r perfectionist by habit ,how u develop a system.........?
Unless u kill bird/cockcroach by hand,........ do execute smoothly as trader?
unless u have mastery of observation of ants/fishes hr after hr,.......how u learn to grab a Right trade ........after rejecting 9 greedy trade ?
Yes these r not with us,.........let us face the fact, before we start.

Let us consider ourself lucky..........born with silver spoon in life,......naturally COCKY, so we r designed to fail ,due to not understanding value of humility.
Next .........a bright student, la iitian + iim product,......chosen to be Madam right , a super confident,.........naturally above mentioned failure+non believe in stop,( i must be right attitude-superiority complex)........dont understand value of experience ........a sure recipe of disaster
Another scenario, a rich film star/model.......naturally a great oil taker(lives on hype) ,........can not understand u to be public shy,......without showing others have to understand market,.............characteristics totally unsuitable for showman.
A product from,lower class , strong determined candidate............only problem is dreaming for money,.........so loss distract him more, should understand.........loss is a part of trading in stock market.
..................So now i have mentioned generalised public ,.........similar plenty of cases,.........but message is same, not suitability.
Only advantage is of big broker's/fund manager's siblings, same like owner's of circus (an old gladiator himself)..........train new strong physique slaves in weaponery to survive in battle field of GLADIATOR.
That's why many a good fund manager dont train their son.........to survive in this battle field, unless they see knack in that chap, also a failure in other field.
.................................................. .....................
It makes a good ground..........only banking industry in their protective environment know .........what to be done, teach some part to rare breed,..........utiicm.com /nism in india...............but for rest,...........all dont know,........u require a real drive to know from scratch.

2nd part is now how we can convert us to be successful .
The good experiment of turtle proved.........we can learn it, provided we have basic psychological ingradients and a proven right method,........which we shall copy with discipline.
Basically its nothing but behavior modification to follow some rules in the field of TRADING.
1] trading is lose making business ,if played always,........only on certain favourable condition u shall play ,otherwise fold.
2] without participation u dont know what is right,.........so take entry and get out with small loss.
3] If right , use your advantage to play to earn.
4] money managent is more imp.
5] discipline is key.
6] u must know some background,.......terrain.
7] emotion should be least here.
8] right mentor can help, though market is best teacher.
9] documentation and planning really helpful ,believe in yourself.

Another aspect is reading of good books, .........a heavy doze on what may happen, if u r not always cautious, previous generation market wizard,and modern expert ......how they cool to face adversity.
u reqd.........tremendous hard effort..............to maintain state of unconscoius confidence.
Yes...........come back attitude u have to master.

 

[oilman5]

14] Commitment
It is dificult to commit without interest.Interest is not greed, but enjoyment to do it regularly.Unfortunately in trading field,........below 10 yr's commitment ..........a sure way to doom.Its not going to casino for a day, nor a casual dating,.......but a resolution of 10 yr to follow atleast. Reason majority fails here ...........as they have no
a)Commitment to learn
b)commitment to stick to stoploss
c)commitment not to enter.........unless proper understanding .
d)commitment to analyse after trade, and changing repeatation of similar mistake.
..................................................
15] confidence
...............................
RIGHT confidence is reqd...............no more,no less.
A trader..............on paper has capability,...............but about a yr in market, boys and men r apart.
But again with fear/greed cycle after loss and profit recovery............we get back confidence with reality.
Again after many yr, with practice/experiments with various indicators /combinations.............we understand , basically they r tools for CONFIDENCE,
When understanding becomes shaky...........we ask what to be done,...also when we face vast uncertainity.
Overtrading create problem............also hesitate to enter after loss,........that time proper dozing/suggestions required.........also out of markets for some months,brings back rationality as well as confidence.
For exceptional good trader(particularly discreationary) trap of over confidence.....looms large,..........and brings back rationality with humilation.
Keep focus..........that is the solution. Also develop knowledge on economics,......it build up confidence.

 

[oilman5]

16] Mentor vs mentee-one of my specialised topic already mentioned in other thread which holds true
..................................................................................................................
MENTORING :it is a process by which a more skilled /experienced person teaches/encourages/counsels a less skilled /experienced one for promoting latters professional and personal development in a friendly environment.
1]first understand what is going on
2]discussion is the method
3]relevency
4]learning a job/skill development
5]ready to change but how?
write down mission and strategic statement Then aim.Use strategy to reach it.
.............strive for excellent concept
6] concept of VALUING.
.................
MENTEE'S AIM: SUPPORTIVE SELF DEVELOPMENT
relation depends on degree of trust and mutual regard
MENTOR HELPS TO MENTEE TO REALISE HIS POTENTIAL[ ACTUAL]
first aspire...then aspire to ACHIEVEMENT
PLAN:
GET A WHOLE PICTURE AND LEARNING ATTITUDE[mentee must believe " i know little , i must work hard to learn & change myself"]
....................
IDENTIFY MENTOR[confidene build up measure]

1] who shall take interest in my welfare and development
2] can he be role model?
3] can he be helpful to uncover my talent or ability, resolve difficult situation
4] aim to acquire new vision.
...........
some concept r useful
........................
concept of a manager....he is supposed to manage the situation both man and material to the best of interest of organisation & situation
...
discussion type..open and close......
open ...ready to discuss anything
close..ready to discuss to sp. related topic ..as agreed
AFTER LEARNING MENTEE gets a new vision what is possible
then practice to apply

Benefit to a mentor
.......................
sometimes something monitorily....but actually of trust/more fulfilled ..concept of purposeful
.....................
COACHING...SP. TIGHT FOCUSSED GOAL
TRAINING.......A REPEATATIVE CONCERN TO FOLLOW AFTER UNDERSTANDING....TO DEVELOP SKILL
.....................
APPRAISAL......ITS A PAST OF FORMAL SYSTEM/INDIVIDUAL..TO EXPRESS ONE'S STRENGTH AND WEAKNESS, MAY BE PERFORMANCE RELATED ,TO PROMOTE OPPURTUNITY[ if wrong penalty]
it is also knowing 'matter of fact' ....regarding ones +/- pt
to improve performance on continuous basis.
....................
notes taking is a good way to learn.......
..........................
Progress and development
.....................................
step 1: getting started ................talk to potential mentor/ talk to who has gone through it and reflect upon 'own experiment'
step2:relevent job relaterd experience and skill[u have], interpersonel skill to learn and to deliver
a DESIRE to give &
AN OPEN MIND FLEXIBLE ATTITUDE
..RECOGNISATION OF WHAT U WANT TO IMPROVE
..TIME AND WILLINGNESS TO CONTINUE
...DEVELOPMENT OF U VS. DEVELOPMENT OF OTHERS
..VALUE OF EXPERIENCE AND COOPERATION
.......................
STEP 3] AREAS OF DEVELOPMENT.
........A] UNDERRSTAND SYSTEM [MARKET]..HOW IT WORK
B] HOW CAN I BE FIT THERE
C]ACQUIRE OPEN FLEXIBLE ATTITUDE TO LEARNING/GOING THROUGH DIFFERENT EXPERIENCE
D] UNDERSTAND DIFFERENT AND CONFLICTING IDEAS/ SITUATIONS
E] BE AWARE OF VESTED INTEREST BY MARKET PARTICIPANTS
F] OVERCOME PERSONAL SETBACK HOW TO WIN OVER OBSTACLE
G]ACQUIRING SP SKILL
H]GAINING OF KNOWLEDGE AND CHECKING ITS RELEVENCY
I] PREPARE YOURSELF AS EXPERT[EXPERTISE IN ANYTHING]
J]ADJUST TO CHANGE
K] UNDERSTANDING VALUE IN THE CONTEXT OF SITUATION ...[VARIABLE TIMEFRAME BY VARIOUS ONLOOKER...IN SHARE MARKET]

now SOME GROUND RULE AND A MODEL
.................................................
1]ALWAYS ASSESS FIRST
2]A SCHEDULE TO WORK
3] A 'GROUND' TO WORK[ON WHICH] ...AND WHICH NEEDS FURTHER ATTENTION
4] RELATIONSHIP STUDY FOR EFFECTIVENESS.....ENHANCE ONES KNOWLEDGE ....UNDERSTAND FILTRATION IN LEARNING/MATURING
.........FEEDBACK LOOP CHECK
........................................................
I PROPOSE A 3 STEP MODEL

1]EXPLORATION OF NEW IDEA
2]NEW UNDERSTANDING
3] PLANING UR ACTION
...........
this model pt i expand further
first step ...exploration of new idea
................................................
clarify what to learn
.............................
create a discussion mode friendly enough to encourage further exploration
.................................
be patient
...............
realise with time ...own answer..[resist temptation to tell others]....[ u see the fool in me...i dont follow what i am preaching]
--------------------------------------------------------------------------------

second step...new understanding
................................................
1.LISTEN....yet check and check any new idea if right
2. ask open question and discussion pl.
3.recognise individual strength/weakness
4.ESTABLISH PRIORITY
5. SHARE EXPERIENCE..[CASE STUDY METHOD]
6 BE FLEXIBLE..LEARN TO SEE FROM BACK..AS WELL AS FROM FUTURE
.......ENCOURAGE TO 'SEE' DIFFERENTLY...BUT QUICKLY LEARN WHAT IS RELEVENT[WHAT ONLY CAN HAPPEN..SO THAT IRRELEVENT LOOSE PRIORITY]
7.REMEMBER AN WORD 'COMFORT'...LEARN AT OWN PACE
8. KEY WORD IS CONSOLIDATION...REFLECT BACK AND CLARIFY
9.NEED...GOAL AND ASPIRATION........WHAT IS TO LEARN FURTHER?
...........
NOTE..NEVER ALLOW POOR UNDERSTANDING...TAKE UR TIME...BUT UNDERSTAND THOROUGHLY....AS ACTION OUT OF WRONG/POOR UNDERSTANDING...SHALL BE VERY COSTLY LATER

Third Step...action Plan
.........................................
1.examine Alternate Action And Its Consequence [risk/reward Analysis]
2.choose One Or Two Proper Action Plan...monitor Progress Of Event[price].....evaluate Outcome[later..in Cool Brain]
3. Commitment Factor....[expect Many A Time U R Wrong]
4.evaluation Of Oppurtunity....believe/faith Factor How Far Helpful In This Particular Occasion
5.learning Cycle...think Of Experience.....what U Can Generalise From Experience? Apply It........experience Loop
--------------------------------------------------------------------------------

Hope all those reading it , find enjoyable and thought provoking.....
but first question is why u need a mentor?.
..........................................
the answer is as mentee needs a support /trust... for stress relieve mechanism
as trading is always an uncertain event....
who can be mentor?
....................
who has knowledge , experience and skill in related field............who has vast experience of facing difficulty and yet to run smoothly[what to do now].ie. calibre to face stress
HE MUST HAVE SKILL ...TO BE OPENMIND.+IVE OUTLOOK..GOOD LISTENER...to think and feel how others plan to behave..
.................
hence check the fitting mentor and mentee.

Being A Mentee
........................
Accept Challenge ...ready To Learn Willingly And Highly Committed
...believe In Balanced Risk Approach...must Believe Learning Is A Continous Process....achieving Progress Is Always Possible With Time
.............................
Expectation Of Mentee
...............
1.proper Guidance Yet Challenge To Perform
2. Enjoy Friendship And Support
3. Learn From Example
4. Learn From Mistake
5.take Wise Counsel/know To Listen
6. Self Aware
7.share Critical Knowledge
Wrong Mentee(who can not learn)
..................
They believe In Gossip[enjoy Loose Talk]
..expect immidiate Soln[answer To Problem..not Capable To Handle]
................................................
Conclusion
....................
A Mentee Require[need]........
1.a Critical Friend
2. A Confidant[some Sort Of Emotional Support]
3. A Source Of Knowledge( i am available )

 

[oilman5]

17] value of regularity vs discipline
.................................................. ...
A great trader suggested the reply to what great quality requires to be a trader ? answer : DISCIPLINE
INFACT MANY A SUCCESSFUL TRADERS R FROM DEFENCE/SPORTS BACKGROUND.
so definitely army as an institution plays the role..............to mold with this 2 habits, punctuality and discipline.A particular time to wake up,take up food, even of particular type, priority to health, following instruction with or without grudge.......prepares oneself to ACT,at various possibities in market.
............
u have to consider yourself...........2 different personality, one is for execution...
another for your decision making process.
While decision making, even restraint/not to enter.........u have to decide,.......mind it not entering market/ taking out money............itself a decision.
NEXT while execution, without........a 2nd guess u have to get it done.
It is seen over last 2decade........better i decide after market hr,.............and execute at market, 2 things must be seen separately...........first as strategy , 2nd mechanically. Atleast it helped me.
........................
Regarding Regularity........i find Early rising .......common to most good traders from india,...........a higher time to prepare for battle.
Another plus of regularity : it helps to become STOIC.
.......................
Ref: Regarding Discipline , van tharp's book on discipline(peak performance course) and material from disciplinedtrader.com r best resource . Basic of 2nd one is self hypnotism.....and some ritual before market hr,..to keep YOU factor ,...out of execution.
.............................................................................
18] Patience
........................
All successful traders r patient. Never enter unless oppurtunity exists, as well as never hold uncessarily,after understanding MARKET SHALL fall.
They have mastered -No patience to hold losers...............this uniqueness comes after experience. I know a trader who keeps coach just to remind him........'hey u get out, ur rupee is burning.'
Many a retail door salesman/insurance saler ........knows the value of patience,.........as they have not quitted the profession.
Another is 2hr each , game of chess........notoriously slow to test ur patience.
btw............greed driven personality lack this quality( hence not suitable for trading)

 

[jagankris]

Dear Oilman ji,

In the current phase of bearish markets.
Except for IT and Pharma most of the sectors are bearish in the daily TF and few are down even in the monthly and weekly.
It is expected that Nifty has more fall.
Is this the right time to short strength expecting that the bearish sentiment will catch them than the already beaten stocks Or better to sell weakness ?

TIA.