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

[oilman5]

19] whether Discreationary or Mechanical
.................................................. .........
Both r ok, actually individual choice.For All new learner..............mechanical is better, but 8yr onwards one may switch to discreation for further better result.
At the start...........discreation is very dangerous,infact harmful..........as clear idea of what to be done, can not be executed .
So learn little , follow some rule, use mechanical entry/exit..........practice trade journal , that way prepare urself...........if returns r coming , consider urself exceptionally lucky,..........market condition actually favouring ur style of trading.
Discreation can not be started..............unless u have seen bull-bear cycle, directional bias before something can happen , then only may come within YOU.........
Also u have to study lot of INDICATORS in past,......so when indicate Right, where they fail,.........is known to you.
Infact discreation is use of your VAST EXPERIENCE,....
But if mechanical return is ok, never plan to shift.
For simple mechanical 2MA x is better,..........also some condition profit booking.
Add pattern criteria.Then add momentum tool.
Later u may see some conditional tool,...........to understand market.
However slowly develop a habit of reading financial news, and its impact on market.........u may shift oneday to create a filter out of it.
Alternately total shut NEWS,...........if it affect your price reading(forecasting) quality.
Mind it,...........u have to practice and practice again.........until it becomes habit.
Also then u shift to particular style like swing .
.................................................................

20] Problem of self sabotage
............................................
All traders know this problem.............definitely the most imp thing for blow out,..........after trading a decade.
Self sabotage is when u know what to be done,...........yet u do as per whims...........destroying our a/c.
example : an arbitrage player............playing a big directional trade.
2] a good forecasting player...........suddenly not triggering stoploss,........holding position to prove himself RIGHT at market.
3] a break out player , seeing gold at high , with new buy coming from some Govt, due to some inexplicable reason........plan to short........(desiring upside is limited so i am shorting.)
...................Last2 EXAMPLE HAVE COMMON THEME............desire to prove market/price wrong.
First one..........Going against own philosophy of trade,...holding losers may cost heavily if u wish price shall turn in opposite direction , alas he will be not a player.........
So get out on danger sense is not followed ... only big loss when market proven wrong,....u r putting hope.........on bounce i shall get out,.........which may not materialise at all.
Last 2 cases r being rooky...........so the sabotage.
..................
It has been told we have adventurism..........suddenly after many yr,.........which resurfaces , braking our discipline barrier ,...........and we join our trade-adventure, spoiling not only hard earned money,.........but also own trade system.
....................
Known work by Ryan jones.........is best to prevent it.
Arrogance is your enemy..........core reason of sabotage.
Mastery over Ego.........and indecision ..............helps to overcome sabotage.
Key idea is ...............sabotage is natural, extreme discipline to be practiced , again & again to can stop it.
Risk of loss must be seen as REAL , and control ur expectation.
Imp of preparation in mind ,scenario preparation vs. your action guide line written ....again and again emphasised here.

"have talked with thousands of traders in my life. Many of them are well-educated and have high-paying jobs. You name it, doctors, lawyers, engineers, real-estate developers, airline pilots, scientists and the list goes on. Inevitably, almost ALL of them I have talked to believe that because of their education, because of their success in their job, they can simply transfer that education, experience and success into the trading world. This is ego talking, not truth.

The truth is that an airline pilot cannot transfer his education, experience and success to the operating table and seriously expect to succeed. Why, then do you expect your education, experience and success to transfer to trading? Vast and enormous mistakes are made as a result of this erroneous belief about trading"...........Ryan jones

..................... There are no short-cuts except to do it right .Successful traders don’t FORCE their comfort levels on the markets, they conform their comfort levels to WHAT WORKS!
remember : if u can not give ur allocated time............its sabotage. If u bring nearer one to ur trading a/c.............without proper experience(ie bringing inefficient near your trading)..........its self sabotage, .......sure recipe for failure,.............i vow for it knowing it firsthand Not once but Twice.

 

[oilman5]

21] Envirornment
...................................
An auxiliary aspect of stockmarket.Normally understanding financial services is first step towards clarity on finance/stock market.
Bank does business on give and take of loan , with a fixed % in between
CENTRAL BANK, rbi in india, control banks, decide interest rate, govt borrowing policy, stimulas to export,maintanances of stability of doller/rupee parity, maintain macro policy with SLR,CRR, REPO/REVERSE REPO, brief financial threat to govt ,and give stimulus togrowth/debt/inflation.
Leasing/factoring...........a spl service
NBFC.........ARRANGEMENT OF pvt loan
INSURANCE SECTOR : risk to be distributed among masses , againt premium underwriting........making a little money out of it.
Investment banker.......does the valuation for company.
RATING AGENCY.............grade a company/country based on its past.
CA.....DOING AUDITING OF COMPANY and for financial part of individual fot tax purpose.
COST A/C.........studying cost analysis , so that project viability can be seen in real term.
FE/FI.........expertise on new innovative product preparation and its sell, without considering its consequence.
Brokers...........purely getting a little commission out of buy/sell by invidual ,though large in number ,normally bottom of food chain.
Sebi/stock exchange.........ensure...........small -ive sum game available to masses with illusion to big profit, actually helps brokers generation after generation to run families of stock brokers and a little money to govt, with a key cover of transperency/regulation

ALL types of money ,basically by dream of enterprenaur come to development with a belief of growth,.....create services,.........growth can be sustained or not .......thats a different story.
PROBLEM STARTS ........we all have greed , also seeds of speculation and dream of easy money.
.............................
CERTAIN TIME , instead being pro of our otherlife..........we plan to earn more.......out of our specialization.
NORMAL BANKS..........WITH THE HELP OF MutualFund...purchase company shares,.
which they know shall outperform........as economy/growth shall be reflected with better prices of stock in long run, also media shall do its part of greed hype.
Investment bankers.....after doing value justification in the interest of client, also plan to buy a distress sell company....after understanding its better potential.
INDIVIDUAL OFFICIAL...in various capacity , lure by personal interest.......accept favour........detoriating the service , also putting institution at RISK.
COMPANY OWNERS..............with help of operator/brokers tells big story,.........corner stocks........and later dump (pooring the fools-common investor)
CORRUPTION IS part of system, accept it,deminishing return exists,.....u have to be shrewd to prosper.
..................
So keep an open eye/ear.............evaluate gossip , do real SWOT on it,..........if u believe it may become an opportunity , put some money on it.
...................
Normally what is written on top , this essence is reqd to understand ......atmosphere u r working.also realise a concept called ......'failed trader'..........educator, call giver, financial planner ....all different pseudo name.
NEXT U REVIEW A SPACE ...........called HOME....... why in financial industry..........a comfortable space in office...?...for decision making
..........to avoid distraction, a place to do positive for the company in objective way.
MAY BE........your home is not suitable for that, DISTRACTION IS HIGH ........u may do sabotage, may be other members dont understand ........what is reqd,.....a hindrence . Other member May do harmful comment.....'what nonsense u r doing? bring abc from market instead'..........'be join a service'
YES ....showing seeds on concrete.....adding coal tar, ......CAN NEVER PRODUCE A TREE.
..............................................................
So environment shall be like an INDEPENDENT Puja room in a house,...........where u r the priest.
Do your ritual to keep discipline,..........spend time on decision making, alternate scenario preparation , written instruction for execution,.........and later journal writing. Out of these only,....execution may be delegated to a subbroker/RM. other 3.....strict NO
U May use , various outsource............to filter data,(like pro membership, fully knowing what they provide & accuracy level,......more u add more inefficiency comes in)
An independent data source, for fundamental as well as technical is better.
Also if u could afford COACH , to cut out any psychological issue,...(not triggering stop )
also afl may be helpful................to stop out.
Pl use a concept AUDITING............atleast a month, for investor..........once in quarter.
.................................
Plot ur return.......if in 4 yr.....if no improve,....QUIT......trading is not everything in life.

But if u get good return..........30% annually ........pl do everything to maitain it, create a strong barrier to protect that dream gem in u

 

[oilman5]

22] Economics..........the backyard for trading field
.................................................. .....................
first i come to know from a course by Mark Boucher.......who teaches for fund managers and in tradingmarkets.com in 2002. I check it and found principle work it all markets....
Austrian economic model championed by SOROS........u have to consider Economy is the backbone of industry.If in democratic country, free will exist.............it shall surplus expectation , creating a boomimg economy,.........
Contrarily,when growth rate shall be forced to turn down..inflation's ugly head turns up.
......central bank abandons it creating a bust.This economic boom-bust cycle can create prosperity in country's stock market, which has also bull-bear cycle.
If u understand properly this as global scenario.....u can be way ahead......global fund managers use it......considering country as a scrip.......invest and get out,.........both with leading macro economics..... GOVT IMPLEMENTABLE POLICY, WORKFORCE/ENTERPRENAURSHIP and moneyflow...........tools they employ in financial model, helped by p/e band for timimg.
............................................
i use little of it, without understanding in 2002............,if most indians not in market,.... dont understand big money has not yet entered.........just simply buy,......sell at first signal of turn down in nifty ,DEC03/JAN'04......around bse'6000.
Later i have studied in detail macro-economy..........to understand,,,,,,,,,,demand/supply fitment in commodity model.
Crude calculation mathematically may be found in Elder's bull power/bear power tools, also DR BILL WILLIAM'S fading trade model.
Basis is at crucial/imp pivot...........study demand/supply with moneyflow, see also newspaper headng as contrarian, coincide with p/e band.......lower/upperzone,......
yes u can beat fund managers' in their own game.
..fiscal deficit and inflation study.........may give u real knowledge.......whether growth of a country sustainable,...when stock market
....decouple with growth, may turn south.
.........................
Yes utility concept, demand/supply , monopoly creation,sustainability of growth, govt's will to implement fiscal policy.....................this things u have to understand/practiced in your backyard's....before employ them in trading. THEY GIVE MONEY

 

[oilman5]

23] Equity curve.............INSA ALLAH of stoploss
.................................................. .....................
All engineers know data representation,mba aspirants practice to clear written test, accounting and marketing guys dreadfully see it in ppt to understand fall,...........yes data representation in plot on a graph.........has a more impact.
Yes most failed trader has a common fault to ignore equity curve,..........portfolio plotted in chart.
Dr elder uses it 6% concept, for u may be 10% ...........if your total portfolio falls 10% from top, simply get out,...........save money,after suitable behavior modification or change in market condition,.......... come back to market.
For a technical trader, u may follow similar to SAR , in any technical software..........a definite stopolss to save a trade.
Similarly total portfolio must be seen , it helps to save trading business, not addition/subtraction on value.........plot it , it can be done in excel, may be graph paper on weekend 1pt, but definitely...........save your big money. STATOR -std trading /money management software has this facility.
Normally new forex trainee candidates practice to improve execution......'no let loss run.'
...........i vow this technique will improve bottomline of trading business, and do it yourself, so firsthand u know .........market may burn your house, so pour water...
...once a draw down of 50% happens , its very difficult to survive.
ALL pro follow this philosophy in trading

 

[oilman5]

24] DO i STRESSFREE ?
.......................................
No, that is the reason of new learners failure.If i am not properly commited, there exist gap...........dream vs reality........a source of stress.
We all know eu-stress ,..........stress within limit to act is BETTER.The stress band u feel comfortable is good ,problem lies..........outcome which is not within ur hand,........takes your brain time-creating a gap between thought process vs. execution..........,distract in ur planned operation ,.......this failure to time target creates.....pending work dilemma.........adding to point of no return psychologically , creating stress.
How much u r overloaded.........can easily help u to understand stress in modern day. Say, u r age of 26, doing job 8hr x 5 days , journey 3hr x5 days , personal time being ready 2hr, sleep 6.5 hr,sitting in computer / reading 2hr.............so 8+3+2+6.5+2= 21.5hr, less than 24.........u have leisure to relax.........NO STRESS.
Suddenly u r abused in office/ u want to improve , become mba.........your weekend old habit........has to cut to fit college time,..........also ur gap of 2.5 hr......will help to do little bit study,.............so now schedule is hectic,............but YOU CAN MANAGE.
Suddenly u find a good looking girl, who may fit with ur dream,...............but u have to spend time with her,.......or new priority must cut down........old garbage of computer/reading,.......then cutting personal time to 1 hr and sleeping upto 5 hr,..........u create.........a time schdule , and adjusting with time,.......within stress limit. Suddenly your boss tells u to stay another 3 hr more at office,........creates a stress.Your families talk on arranged marriage adds irritation with you,...........now a small indifference of ur girlfriend............add insult to injury.........may cause an outburst towards that girl,........yes this is stress , showing its ugly head,.........i know as my past in games of chess/bridge...........study , professional service life.........other familylife.........all messed up,.....to create bodily trouble ,in form of BP , diabetis also in memory fall.
This body m/c shall fail oneday i know,.......so with some modern de-stressing technique like bipasana/reiki /walk ........can heal,.....but really i have to change lifestyle.
I must understand my limit,.........live a dog's day. so prefer trading.........to get more time and live on own terms, and with normal conflict in personal life.
......so its a chamber of utilising 24 hr, on job, personal learning, family, my hobby.........also some time to body m/c.UNLESS THEY R PROPERLY CHAMBERISED .........THEY SHALL KILL TRADER IN ME.
,,,,,,,,,,,,,,,,,,
A trader must understand this thing in long haul, all good traders.........balance this front first and then they trade, remember..........sabotage.
Actually trading is a stressful event, so life front....stress should be minimal to do right trade. u must get a set up to give your best...........as u have to fight in market, ......
...................
Actually morning walk. pranayama, reiki, seeing fish in aquarium,.......quiet mind......really helps trader

 

[oilman5]

25] understanding EIC model(economy-sector-company)
...........................................
Many years back there is a debate what is imp....economy or performance of company ? Course r created in 1963........in mba to use best avalible practice in america,...........so a course was born in 1970......as per success seen by industry and feed to mba colleges,.....cfa r created to evaluate company / stock analysis better. Naturally it come mba-finance curriculum in iim, speciality in icfai,hyderabad........utiicm course later,.......also now in bse.
since its for industry.................
FIRST must be economy.govt plan ........where new stress , sez also export orientation.......r key theme.
pl understand money supply,........how a confident enterprenaur successfully apply porter's five force model..... strategic management course and spl economics by......go to it........... extensively detail.
Basic thing is if u understand ECONOMICS,........u may understand where DEMAND shall come.
Now study SECTOR,.........upstream/downstream facility with integration factor, pl study original idea.......its for industry...........not for novices ( fallacy is CA never worked there/nor the college teacher, so inbuilt error exists) But atleast u get skeleton to work in industry......so understand with Porter's model ........sustainabiity and plan & condition to develop growth.........so comes I.
Also search for new economy sectors............just see the leader.U R through.........allow CFA to read and write then publish on C.......company. U simply read , check its assumption , see price strength from stock market..........EARN by the model.
ICFAI had done good work in C .......considering many research .......pioneer,......just u have to add latest data...........if u love hardcore research.
Actually company micro study is nothing but auditing, data scanning........to throw out lie, just like investment to find its true value,.....also future forecast...........here again problem.....unless u have first hand experience in that sector........u cant get it(here lies superiority of a mature business person ,he understands , he smells)
......................................
OFF topic...........analyst's use......in a board meeting in presence of 3 good analysts CEO suddenly asks his finance guy.......'do we have fund idle ?".....yes sir . 3pairs of ears reacted .Suddenly discusses expansion plan which turns (conclude -ive)down,.......... but he suggests fund should be utilized and company has a rosy picture after 2 yr. From a corner a chap calls to use that fund in better way. CEO stops him, suggests to honor 3 great analysts to go to lunch.........he can close door to discuss further , and promise within 10 min to join in buffet.So bright eyes have to move out,.......taking foods and later eager to know after 15 min,..........CEO suggests nothing . One of his associate while taking lunch suggests buy back is thought.Also 25% growth rate is very much achievable. CEO tells..........he may talk in next quarter.After 20 days suddenly 6% upsurge in that stock.......and slowly moving NORTH .CEO on telephonically told ......i shall tell in next quarter........another 63 days. Yes board meeting day is decided and analysts r called. .............But before.........the 2 days of meetings.............price around 30-25% up , considered from first meet,....stocks are dumped.
Of course.......who made money .......u know now...........who lost,.....the dumb fund manager/tipstar...directly associated with those analysts,.......Fish eat fishes in their own game.
.................
REPEATING again,.........it is proven beyond doubt eonomy , sector to be studied first...........not the company

Understanding sector model
................................................
Concept of sector is very imp,.........as birds of similar feature,shows crowd mentality,........so same sector moves up/down with strong correlation ..........first proven by Mark Boucher.
In mature market, money rotates.............rarely we can see strong bull move, money moves to where result is better and then where expected to be farther better.
In india equitymaster.com.........has created good sector, also visualtrader , a software .......show in volume and price moving up , in syncronization.Its a trend up for somedays, intra -sector,.............however for inter-sector..........money flows out from bad to good one.Actually its a strategic play between Hedgefund type , shortterm play.......where overall moves little ,but inter sector movement is around 10% in month.
Play plan is similar to commodity,...........consider a upper band /lower band .........play in between ,within sector index. Alternately...........main 5 company of a sector........may be with high beta, speculate to move further with +ive correlation.
Sugar, paper, steel, aluminium , power, software, pharma, hotel...........all places u can play like this.
In metastock,........omnitrader, i know.....sector strength up calculation,.....similar can be done , in other software.Superior rel strength in 14days........suggest sectorial upmove.
Another play plan is,...........allow a sector to fall,....
.then bottom fish ........the sector, atleast after 6month,..........if price is moving up, or strong fundamental good announcement on a particular sector.
......It suit to positional trader.............not in day trade.

 

[oilman5]

27] Usefulness of TA
.........................................
i have planned to write in detail in advanced learner level , already given detail prepared course under corporatebridgeacademy in video format + screen shot, about a charge of 2500/-,also in many other thread .Here some comments r given , yes in personal trading/invest life i start with TA in 1992(being a technical guy , i bought the book -thinking it must be with ENGG, yes i was that much fool/novice).Some observation very much personal r put forward ............
a] its tougher than fundamental
b] hardcore TA , rarely earns
c] for day trade/ swing trade TA must
d] Pl read good books,..........learn from pro , who earns in market....atleast 6-8 yr.
(Never listen from TA call giver).
You should practice more on money management /nor ta.
e] TA can be a forecasting tool,if u know.....REVERSAL.
CONTINUATION.........ie. break out in short term...........is more an illusion, normally fade by pro.
A strong buy @ bottomfishing,.........in lower time frame suggests...........a fractal move ie higher time players r coming.
Statistical probability on pattern performance...........is very imp concept.
Definitely support/resistance and MA has some credit, but more imp is PIVOT,.........as make or brakes in a significant pivot.
f] TA is art,.........not science, so far one's mind varies in mental level.....with fear, greed,hope ,if and but..........not suitable to be TA learner
g] indicator helps to create CONFIDENCE , more imp skill is read price and what BROAD Market is telling.
h] trendline works with concept of geometry.
i] 10 % weightage we may give to TA , in a proven system of trading.
j] TA helps us to anchor somewhere, particularly scientific way of trading..........throwing out bias of news.
It helps to learn market psychology.............what market is telling in short term.It tells to believe in own eye, not on EAR.

28] Creating TA model
...................................
Hypothesis: past represents present.........read inner condition.......now similar future may be visualised from present.
2nd belief : dont anticipate.........but react, only to visualise a bigger picture early ,based on price confirmation. Now earn/book profit.........just at first reversal of trend.
3rd view : insiders know more and greedy ........so they make creeping acquisition,........before an anticipated event....and sell on NEWS .
4th level : we dont know market,nor we can predict , efficiency creates volatilty ,..........however Low volatility is followed by HIGH volatility , since direction is Unknown, take CALL/put both,.......cut off early after start of move in opposite direction & hold the right one.
.................................................. ............................................
1st belief : solved by pattern study,.........on similar expected pattern take position,.........with stop loss in opposite direction,to get out of pattern failure.
2nd case : its the momentum play , use TREND,...........profit book by.......SAR.
3rd one:see accumulation,.........book profit.........at distribution.
4 th case l study historical voatility,.........see the repeatation .Now at expected repeating pt of high volatilty,..........play straddle in near month.
.................................................
Have u seen,...i have not told rubbishes.......what common people think on TA ,.......which r basically junk.
Still if u insist,.........a simple MA x of 5/20 is sufficient +ive expectency.........with 3% stop.
In range bound market,........use william% R.....................
In short term trend..........use AROON.
.................................................. ...
Learn to use REL strength in strong sector,.............In pullback..........use FIB retracement.
For intraday..........use anything which gives money,.........if nothing gives...........never play itraday ,
trial time max 2month,......continuous 15/20 profitable trade...........suggest U a bright future trader.
Otherwise strict NONO.
.................................................. ....................................
i am sorry to say,..............in my 8yr indepth study on TA,bookish theory idea .......no tool/indicator is foolproof...........most written things r HYPE
A WRITTEN PLAN ONTHE OTHER HAND,...........DEFINITELY GIVE U MONEY , IF FOLLOWED WITH DISCIPLINE.
MULTI TIME FRAME STUDY IS HELPFUL, TO UNDERSTAND GIANT FOOTPRINT,...........

29] A model for searching oppurtunity
.................................................. .....................
Its very difficult ,for novices...............as they dont know , its the SET UP,.........we must search,..........its not available in newspaper /magazine /call letter.
From experience and syncronisation with market ,..........one may develop skill of prediction on market,.......... AFTER a particular interval, AS MARKET CHANGE IS LAW,...........only when his accuracy become good enough to earn,price behavior changes its course of action. So the learner must find suitable tool & conviction to predict again. Actually its more depend on what u want,...
for break out,.........search strong momentum candidate.
For normal entry,...........search pull back candidate.
For safe trade,..........use support buy.
If u dont know programme,.........use eyeball of around 100 stock daily ........for 1 hr.within 6 month,.........u may find repeatation of pattern.
A simple search of 3%up + double volume.............search shall give u 2% candidate for next day.........
A known resistance pt, last higher top........coinsidence with bear -engulf by candlestick..........a good candidate for short.
...................................................
all these shall be discussed in detail.......as we shall move to advanced learner level

 

[oilman5]

30] how to use software

U must use software,whether esignal(adget) , metastock, Ami,omnitrader,falcon or........ichart, brokers' free one, yahoo etc..............to see yourself the market..
It develops objectivity.......i do, i understand .......syndrome.
First use that platform..........to do all experiment like a child with new brush and paint.
It takes normally 6 month to understand first platform/software......what r basic feature. Next pl follow guidance ....professionally to understand it , around 6month any good product has A'class manual........metastock........i am accustomed with it from 2001, equis.........free lesson, guide by Metastock Professional , moreover.........both stockexchange in india provide data........in meta format .
Next i studied OMNITRADER,.........because of its auto - facility.It helps to throw out emotional demon,it has potrfolio study facility.
I try also with MTPredictor , .........to understand elliot, low risk trade, and DT for time-price -oppurtunity element.Actually which gives multi dimention and created analysis paralysis,...
Similarly in 2005-06 i started on programming in Meta...system development/automation playing with all expert/indicator/explorer...........creates no development in Trading.
Now i understand ....its a cycle ,we have to go through it,(search for holy grail ) to become a TRADER, first hand i have to know what is JUNK.
The software itself is only a tool ,if i know what i am searching for,...............just being librarian , has no practical knowledge utilty,..........better be STREETSMART.
.................................................. ..
I search support.............use eyeball/trendline.
search typical candlestick reversal pattern.
For pivot/swing player...........dynamic pivot /TPO/EOD elliot
Pull back play...........FIB
Momentum play..............std EOD scanner + volume filter.
Auto candidate...........omnitrader for breakout,support reversal
Stoplosss..........SAR,
p/e chart.................viratech data plots it in meta.
Strong momentum in market.............std momentum indicator showing majority stock above 60.
Weakness study.advance/decline
.................................................. ........................
To do yourself programme..........read /practice in detail..........learn to use Query model
TIME is ur best friend here,
For specialist..........GAP finder is helpful.

 

[oilman5]

31] Risk mitigation theory
.................................................. ...
Actually i find it most useful as trader.During project implementation.............i find .......u have to visualise first, then only MITIGATE
.A what if scenario preparation,........
.in permit raj of HOTwork.......i follow the same model,
While studying FincialRiskManagement books........many very bookish r told,.......core is acceptance as probabilty of happening , be prepared if unavoidable,......cut down..the sizes as well as cost......minimize risk first.
I think knowledge..............well awareness of what may happen ........first tool to control.
NO iffy trade,.....................
Find certainity of some potential move,.....be not surprised by MARKET,....
.......read prices..........its telling.
If u dont know your line of action, dont enter...trading can not be HOBBY.
After some favourable move,...........book some profit..........take real money,..
.......DONT give back market.
If u r busy,.........dont ever enter new position.
Equity curve on portfolio value...........really helpful.
old saying in investment..........never lose money.
Old saying in trading .............never let LOSS run.
Old saying in risk management,..........never experiment,..........Do in which u r expert.

 

[oilman5]

32] Fitting the zig-saw puzzle
Roller coaster ride is must for a trade learner ............to understand .......TRADE PUZZLE.
Most imp thing in market..........for you ....its U. nobody else.
Question first What u want from Market,..........what u want in life.........
Next.........how much Priority u give to learn to trade....... initially it should be100%..
Slowly when baby trader is born....allow it survive.........with min FRICTION with other part of LIFE/dream.Slowly it must grow as per your COMFORT level,
A routine schedule....to search for oppurtunity,.....a Time to relax, stress free....
......A time to write Tradelog.......analysis ..........Discipline to isolate u-the newborn trader..........from others .
To stop distraction.....use of shield must be practiced.
Actual trading ie. execution should be LESS ...Follow ACE...
Analyze .....Confirm by price.......Execute .......
Be independent.........that is natural structure in YOU,....its a solo game.
Be keen observent,.....react with deadly accuracy. Understand probability and least risk concept,.........get out of media hype.
Journey is.........novice.........intermediate......MASTER.........
To understand this..............i have gone through many painful moment , even think to quit, but past chess player in me .......fights back.........refuse to give up.
Yes with this i am completing basic idea of learner, ............soon i shall come back to move further up.............INTERMEDIATE TRADER (5-10 yr zone)..........So those who shall come there r not NOVICES.......basically various application /tool & knowledge from other field/exceptional trader who made it looks simple will be studied & ofcourse TA.

If u r ready to quit some hints r given.( pl see video of corporatebridgeacademy where further clarification on TA ,given on nominal charge )
Note :
1]To earn from MF , take HDFC or Birla sunlife.
2]If u know more...........use Sector specific fund.
To trade in Forex.........first be a good intraday stock/commodity trader ........then think for Forex,........understand currency /economic structure of that particular pair of country,........when they show some typical trend in past,........use Familiarity cocept.
To trade in F&0........use call @ support .........and buy put @ Resistance

other time with higher volatility underwrite.....price Normally dont break Extreme.
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Commodity : pl understand cyclicity,........what goes up must come down.
Next........any macro factor ,........FEAR...shift money to GOLD,
Consumption of commodity creates DEMAND.......must be reflected by price.
Excessive media hype........Market NOW topple.
Use overbought/oversold indicator.........for trading commodity