Thoughts on Risk Management

oilman5

Well-Known Member
To explain further,
why i loss in option,...........as i am ignorant.
Why i can not follow arbitrage...........i am poor to understand.
Then how i shall earn from market..........its because i have speculative directional idea, which, when confirmed by price is an oppurtunity .
So today i play for Arvind around 4% up ,taken entry..........get out @ 7% = 3% profit.
...........
This is because , by playing many yr chess ,i can find here lies my strength.
 

DanPickUp

Well-Known Member
""This is because , by playing many yr chess ,i can find here lies my strength.""

Hi oilmann

You are then one of the many other living examples which show, that playing chess doe's not mean, that people are more intelligent than other ones by doing that. You must be great in chess playing and you are a good trader, but not a great trader.

As I know, you are an open minded person, you may also follow some times some scientific resources and lectures.

In the past, most of the persons thought, that chess players have a higher level of intelligence than other peoples have and they thought, that chess players are doing every thing better than they do. You are an other living example to that, that this is a mare.

You are good at what you are doing : Chess playing.

You do not most good in trading on what you are doing in trading ( This is what you explain and show in the last post, even I have your post from other threads in my list from the best post and they will stay there. Just to be clear about my respect to all your post made here in this forum )

The same is recognized in other, so called high intelligence thing people do. So what doe's this mean ?

If I do five hours a day chess playing, I will get good on that. We can train old and young people on that subject and the results are always the same :

They get better on that subject and they do not get better on other subjects. It is a mare, that chess players are more intelligent on other subject, as they practice most time on chess playing.

So, traders should spent most on there times on trading and not on chess playing. :)

And if they spent there times on practicing in high volatile markets ( as you already recommended it and not only make nice words, to purpose hidden thoughts behind academic verses, which not even belong to there culture ) with different derivatives, they will become excellent on that and not in chess.

Take care

DanPickUp
 
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oilman5

Well-Known Member
Chess has given me structured thought process, what to do NOW........its no way with intelligence.
As alternate scenario always to be evaluated ,........so change in situation(read market condition can be easily exploited)
IT teaches value of offence,as well as in case sudden scenario change u have switch in defensive mode(read stoploss activation)
Third thing it helps to use patience .......not to play aggressive ,when situation is not favourable.
..........Since it takes of 10 yr learning to play in national level.........it helps to start my journey to be new student of market ........for atleast 10yr.......being slow learner its my 20th yr.
....................
only drawback i find is stubborness .........
Hope it clarifies
 

oilman5

Well-Known Member
""This is because , by playing many yr chess ,i can find here lies my strength.""

Hi oilmann

you are a good trader, but not a great trader.
DEFINITELY.

As I know, you are an open minded person, you may also follow some times some scientific resources and lectures.
HAVE I NOT TOLD TO BE A BETTER COPYCAT.

In the past, most of the persons thought, that chess players have a higher level of intelligence than other peoples have and they thought, that chess players are doing every thing better than they do. You are an other living example to that, that this is a mare.
ITS MYTH


You do not most good in trading on what you are doing in trading.

YES ,U R RIGHT AGAIN SIR, IN MY YOUNGER DAYS WHEN I HAVE 25-30%RETURN, YR AFTER YR ,I DONT TALK........JUST EARN.


If I do five hours a day chess playing, I will get good on that. We can train old and young people on that subject and the results are always the same :
NO MAN IT REQD A STUDY OF ATLEAST 5 YR, CONSIDERING U R EXCEPTIONAL , TO PLAY IN COUNTRY'S NATIONAL LEVEL.

They get better on that subject and they do not get better on other subjects. It is a mare, that chess players are more intelligent on other subject, as they practice most time on chess playing.
So, traders should spent most on there times on trading and not on chess playing. :)

ITS TRUE

And if they spent there times on practicing in high volatile markets ( as you already recommended it and not only make nice words, to purpose hidden thoughts behind academic verses, which not even belong to there culture ) with different derivatives, they will become excellent on that and not in chess.

STILL I DOUBT,.....IT TAKES ME 2 YR STUDY & LEARN VOLATILITY PLAY ,WITH DIRECTIONAL BIAS.

SO THATS SUGGEST 1 YR ONE SHOULD LEARN.

..........................................................
REGARDS
(CAPITAL LETTER MYNE):clapping:
 

DanPickUp

Well-Known Member
Hi oilmann

We all have our advantage and disadvantages.

In my view, you are a very good share trader :) as I am a miserable :( share trader.

Never spent much time on that subject.

So my comment : " You do not most good in trading on what you are doing in trading ", ( build up on your description you made about your self ), can also be transformed to some part of my trading knowledge.

I am only good on option on futures and there also only on hedge strategies, as I never traded naked futures.

So, I am as equal as you and in no way better or any thing else. Just wanted to know you that, in case there have been some other thoughts.

My friend, I wish you a nice day

Dan
 
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Monetary policy is exptd to chng gear

Monetary policy is exptd to chng gear frm a focus on rates to addressing concerns of liquidity & financial stability says Motilal Oswal note
 
Re: Monetary policy is exptd to chng gear

Monetary policy is exptd to chng gear frm a focus on rates to addressing concerns of liquidity & financial stability says Motilal Oswal note
Dear mehra,

I think the point you are trying to raise is not in context or continuation to the discussion on risk management we are having here. It is always good to look at the macroeconomic factors in risk management, but it will be more appropriate and useful to discuss them in threads relating to macroeconomics.
 

tnsn2345

Well-Known Member
Dear Friends,

As Dan mentioned that we all have certain set of traits / personalities and eventually we settle our trading methods to it.

For me too (I guess with most of the novice traders too) the initial failures could be attributed to the clash of thought process within self. There is no firmness to the thought that goes in the mind once you intiate a position, hence a short TF position would become a long term investment if the immediate move was against the position, similarly a long term call would be closed immediately looking at profits. And here it all starts - the chaos in the mind, which continues for long long time, until there is a concentrated and focussed effort to address it (which again I have rarely seen people try). The more the chaos, more deeper we go in and harder to come out.

Nevertheless, coming to the point of matching trading style / method to our personalitiy / traits is what we should aim first. But in my opinion things should not end here, infact start from here. It is not imposssible to be a multi facet trader. Yes it is not easier either. Refering to Oilman that we need to find different models / plans which may not be improvisation of our existing methods but altogether different. And this is what I call Research. Looking out constantly to new things, finding them, testing, improvising, customising and then making it suitable for ourselves or else then rejecting if it does not match our beliefs.

Coming to Dan's remarks (don't recollect where he had mentioned those) on my trading style, I do it all, from being long on stocks (primarily contrarian stocks- holding over 9 m - 1 year or beyond), do the momemtum plays, indulge in hedging strategies (through F&O), go directional with Index Futures, and also sometimes a raw specualtor by buying deep OTM stock options (aka jackpot options).

It has been a long journey friends, but I am happy that I could manage and still able to handle it quite effectively (...efficiently..I do not know).

Regards,
 

VJAY

Well-Known Member
Dear Friends,

As Dan mentioned that we all have certain set of traits / personalities and eventually we settle our trading methods to it.

For me too (I guess with most of the novice traders too) the initial failures could be attributed to the clash of thought process within self. There is no firmness to the thought that goes in the mind once you intiate a position, hence a short TF position would become a long term investment if the immediate move was against the position, similarly a long term call would be closed immediately looking at profits. And here it all starts - the chaos in the mind, which continues for long long time, until there is a concentrated and focussed effort to address it (which again I have rarely seen people try). The more the chaos, more deeper we go in and harder to come out.

Nevertheless, coming to the point of matching trading style / method to our personalitiy / traits is what we should aim first. But in my opinion things should not end here, infact start from here. It is not imposssible to be a multi facet trader. Yes it is not easier either. Refering to Oilman that we need to find different models / plans which may not be improvisation of our existing methods but altogether different. And this is what I call Research. Looking out constantly to new things, finding them, testing, improvising, customising and then making it suitable for ourselves or else then rejecting if it does not match our beliefs.

Coming to Dan's remarks (don't recollect where he had mentioned those) on my trading style, I do it all, from being long on stocks (primarily contrarian stocks- holding over 9 m - 1 year or beyond), do the momemtum plays, indulge in hedging strategies (through F&O), go directional with Index Futures, and also sometimes a raw specualtor by buying deep OTM stock options (aka jackpot options).

It has been a long journey friends, but I am happy that I could manage and still able to handle it quite effectively (...efficiently..I do not know).

Regards,
Well said tnsn.....these things are repeated by me and everyone who unable to hold mind....trying hard to not to repeat it but till now am unsuccess in this mind aproach......how you people get out from these type of mind set....
please share sure it will help a lot...
 

oilman5

Well-Known Member
www.disciplinedtrader.com is a good site to start.

books by Van tharp can also do well.
............
if nothing available READ way to trade,.......an excellent start pt.
Next.......read POP phantom of pit.
................................
Alternate idea......Believe it is not possible for normal human being.so u r taking extra care to learn it.Its because we associate ourself with success/win .Instead anchor u to follow discipline/systematic trading.
THIS is nothing but a writen documents .....for set up condition in market, entry trigger, exit at profit guidance/exit at loss if situation is not favourable.
Next study.........trade journal to create some guidance for behavior modification.
.............After this we join to RESEARCH as mentioned by great Tnsn2345
 

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