To be a trader - 20 years'journey from novice to pro novice

[oilman5]

topic : SIGNAL
.......................
WHAT IS SIGNAL?
AN APPROACH TO ACT BASED ON SOMETHING...

BEST ' SOMETHING' IS PRICE...
WORST ' SOMETHING' IS WHIMPS...

NEWS IS BASICALLY POOR GRADE...
SOMETHING JUDGEMENT ON LONG TERM EFFECT ..ALWAYS GOOD.

ONLY AFTER A LONG TIME STAYING IN MARKET DEVELOP 'FEEL'

OTHER WISE.. emotional decision r mostly promise -return

increament of eps is good...more is new order..

top or bottom guessing is dream...however they can be seen in left side of chart...in coolhead..in a near by top..if price starts falling ..sell and get out
...justify later[ afterall u r trading with real money...not an analyst for tv-channel]...
same way watch for short term bottom..[ 3650..nifty future on 3/4/07 i dont miss...and book profit today 3970]...
when no further fallnot coming . be ready for buy..
buy on first oppurtunity ..new order is coming nifty future..3rd april..next..
just watch..today dream run ended ..so i book profit...

do u think its a good trade ? no shear luck!..i simply can not put hope...
afterall i allow big drawdown 30% feb/march ..breaking all common sense

signalled i followed in this trade
1. media hype..market shall fall[ contrarian]
2. fii putting real money..
3. william% R starts moving up

stop if any,, 3600 or time stop 3day

…………………………………………….
......................
preview...before an insident u r taking a view..what may happen.
review....after an insident u analise.
proview..while insident is happening ..u r taking decision[pick among best alternative]..acting in your best interest.
this PROVIEW is the aim of a successful trader.use preview.do review later...
follow proview to get money...avoid danger
do u find difficulty ? think of childhood..writing essay...introduction...
body[proview]...
conclusion[review]..

leading indicator must be used for preview..idea..fundamental estimate..
a trade plan...but on actual market ..only proview..lagging indicator on intraday chart basis...observe and act....at 17-30hr.review of trade..
if u r like me..review in end of week.

hence as a complete trader..u must know range trading..trend trading
..also volatilityzone play [ i confess i dont know]

condition of market,.........

min 2 style..day / short term
swing/ positon
position/investment

min 2 style of entry...break out/ support buy/ pullback buy
exit in detail
..................
profitable exit/ target profit book/ 50% and let other half run
exit in loss..bulk sell/ stop execution/ time stop

observe in uncertainity...say today..bearish strength is high..but bulls small individual traders give good fight..sufficient enough to come out of days low
definitely professionalbears can not rollon street smart bull. unless media prints bad picture..[this dalal write/say anything for personal motive..just like publishing foetus photo in 1st page.times of india..for publishity's sake]

ofcourse basic idea of company/sector u deal..fundamental conderation why price may change?

a test of reasoning ..your logical trade..your write up.

 

[oilman5]

Advance-decline line is a good way to understand market sentiment.Refer www.icharts.in

No of stock to watch
.............................
4-5 min each chart...if u have 2 hr..20-25 stock

alternatively scanner helps to find particular conditional filter.
then watch them thoroughly for next day..hence more candidate for prelim.scan list..however nifty must be studied..
compare nifty with that stock..better strength in last 2day must

pl prepare the condition of filter carefully..u shall hit or miss because of this.

since result is imp.particularly this season..its a high risk style[i dont do now]..
...inside knowledge..a good analyst's prediction helps..but see call history..
rarely i see an accurate callgiver..check his assumption
capitalmarket.com is ok but too costly

can any house / broker give 70% rate success ..i doubt.. at present market.

rbi policy is imp now..economy/rain prediction shall show its headline..
personally price i like ..its naked truth..but in india so many funda-hype trader...i must see their view and conviction..its the subjective judgement when to follow trend and when to be contrarian

however live with uncertainity. position management and risk control..can make u a trader..[do it in natural rythm]...i dont know ..i thought i can ..fact is still i have to fine tune..to shy away...i believe in curse of GOD..WHO OPENS ARENA ..GREAT SECRET ..to those who dont deserve .
btw CHECK your ..ICANT GO WRONG ATTITUDE..otherwise big fall comes


conclusion :

1. trading is solo journey
2. lucky..if u get mentor, similar attitude friend.
3. journey path is difficult..and long..it takes time.
4. grail exists....its after long experiment u understand with ur natural rythm
of choosen trade style ..continueusly get money out of market/ other trader.
5. catastrophy may hit u. if u r cocky.[ always have stop]
6. uncertainity element exists in market.
7. learn from own experience....also from other successful one, but assimilate
8. use some system. lower the timeframe .more mechanical it should be.
9. for position trading ..alittle discreaton is must.
10. for long term ..economic view....contrarian thought process helps
11. for day trade..break out trade style+momentum works best
12. for swing..up........support buy attempt is better.
13. for short play..experience counts..how high is too high!on first oppurtunity of reversal ..sell short..when buying momentum again seen cover it.
14.its not market, its u. create trouble and loss for u. stop self sabotage
15.directional view u may have ,but price is supreme.
16. when u dont know, sit idle..watch ..learn.
17. for a good trader...flexible mind,discipline, execution skill is most imp
18. entry technique..any thing which u can do comfortably.
19. exit....at profit ..at small loss...2 case rules r different..mechanical approach is better.
20. holding..on profit..give more time....on small loss ..get out early
21. some fundamental concept..knowledge on sector..key element to affect on price ..u must have...it is life jacket.
22. fii moneyflow must be seen .so is political view.
23. ta is mother for a trader..so learn ..not to predict but to act.
24. money management is key..apply it.
25. read paper to see info ..see chart to check oppurtunity..u have to beat
other traders..no value to trade with odd against u
26.trend element gives money to trader. no body knows when it shall end.
27. live on reality. mastery over ..TIME.. very imp
28. trade analysis.is must and learn from post mortem..what not to do.
29. many a good ref. r given. for site and books.,try to be a thinking TRADER

thanks my dear friend.

 

[oilman5]

RISK /REWARD BASIC
................................

Most traders ignore reward/risk ratios, hoping that luck will save them when things start to go bad.

This is probably the main reason so many of them are destined to fail. It's really dumb when you think about it, because reward/risk is the easiest way to get a definable edge on the market house.

The reward/risk equation builds a safety net around your open positions. It's designed to tell you how much can be won, or lost, on each trade you take. The secondary purpose is to remove emotion so you can focus squarely on the cold, hard numbers.

Let's look at 15 ways that reward/risk will improve your trading performance.

1. Every setup carries a directional probability that reflects a specific pattern. Always execute positions in the highest-odds direction. Exit your trades when a price fails to respond according to your expectations.

2. Every setup has a price level that violates the pattern. Only take trades where price needs to move a short distance to hit this "risk target." Look the other way and find the "reward target" at the next support or resistance level. Trade positions with the highest reward target to risk target ratios.

3. Markets move in trend and countertrend waves. Many traders panic during countertrends and exit good positions out of fear. After every trend in your favor, decide how much you're willing to give back when things turn against you.

4. What you don't see will hurt you. Back up and look for past highs and lows your trade must pass through to get to the reward target. Each price level will present an obstacle that must be overcome.

5. Time impacts reward/risk as efficiently as price. Choose a holding period based on the distance from your entry to the reward target. Then use price and time for stop-loss management. Also use time to exit trades even when price stops haven't been hit.

6. Forgo marginal positions and wait for the best opportunities. Prepare to experience long periods of boredom between frantic surges of concentration. Expect to stand aside, wait and watch when the markets have nothing to offer.

7. Good setups come in various shades of gray. Analyze conflicting information and jump in when enough ducks line up in a row. Often the best thing to do is calculate how much you'll lose if you're wrong, and then take the trade.

8. Careful stock selection controls risk better than any stop-loss system. Realize that standing aside requires as much deliberation as an entry or an exit, and must be considered on every setup.

9. Every trader has a different risk tolerance. Follow your natural tendencies rather than chasing the crowd. If you can't sleep at night, you're trading over your head and need to cut your risk.

10. Never enter a position without knowing the exit. Trading is never a buy-and-hold exercise. Define your exit price in advance, and then stick to it when the stock gets there.

11. Information doesn't equal profit. Charts evolve slowly from one setup to the next. In between, they emit noise in which elements of risk and reward conflict with each other.

12. Don't be fooled by beginner's luck. Trading longevity requires strict self-discipline. It's easy to make money for short periods of time. The markets will take back every penny until you develop a sound risk-management plan.

13. Enter positions at low risk and exit them at high risk. This often parallels to buying at support and selling at resistance, but it can also be used to trade momentum with safety and precision.

14. Look to exit in wild times in order to increase your reward. Wait for price acceleration and feed your position into the hungry hands of other traders just as the price pushes into a high-risk zone.

15. Manage risk on both sides of the trade. Focus on optimizing entry and exit points and specialize in single, direct price waves. Remember that the execution of low-risk entries into bad positions allows more flexibility than high-risk entries into good positions.

Do some research on the basis of EPS, PE and their competitors in the sector also company future plans and past growth. You will get fair idea about your query.

 

[oilman5]

THIS ARGUMENTATIVE SIMILARITY MAY HELP U TO UNDERSTAND RISK IN MARKET
................................................................................................................

Women are as wavering as the wind.( Unpredictablility about markets)
A woman either loves or hates in extremes. ( overbought/oversold)
Never trust a woman even though she may have borne you seven children.
(The mkt can turn against you anytime)
A ship and a woman are forever repairing.(mkt is constantly changing)

 

[oilman5]

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in the first CNBC investor camp at New Delhi, well known investor Ramesh Dhamani said," One should stick to businesses one knows" which was more or lesss echoing some of Warren buffet's views. He further elaborated that housewives could concentrate on FMCG and doctors could concentrate on pharmaceuticals because they are bound to know something about the business.
Equitymaster has a very good information on what to look for in different major sectors
Under fundamental analysis, different sections for different sectors would not be a bad idea. One can also focus on the sectors currently in vogue and discuss companies within a sector.(On the lines of sub-forums metals and energy under general commodity trends;there can be general sectoral trends)

Alternatively, if anybody knows about some other website which provides similar information, I would appreciate very much if they share the info. Quantitative analysis can be easily done by looking at the financials but qualitative analysis was something I thought only a pro could do but such information can prove otherwise. At least one can try.
This is an interesting analysis where fundamentals like P/E and EPS among other ratios are plotted against one another on a graph:-
(i am a member of equitymaster-lifetime)

 

[oilman5]

MY SOLILOQUY - on trading system
...................................................
So the topic starts
..........................
since after experiment , boys and men r apart..we can move further.
to see where we stand as a trader ..can we improve our trading ?
min 50 trading have been taken ..min 20 correct trade .

so the persons can understand trading is a search for oppurtunity.
losing trade may appear any time.
understand hot topic black swan.
concept of hunter and the hunted.

the basic of reward/ risk...when situation is out of hand
when trading is within comfort level.

hopefully have seen one 1bull-bear cycle..or as a pro 100% retracement and comeback.

philosophy of trade : market is war arena..ruthless fighter can only survive

: trading offers great no of oppurtunity to pick.A position
may be oppurtunity or a trouble[loss]...nobody knows
while picking,what it shall be.TIME will unfold..whether
it is profit making one or take money out of you.

corollary :do i know how to trade?if yes, how to do effectively
[trading performance]
specific method to be followed again and again[system]
system vs. individual psychology ----- TUNING

element : experience
market research and put data for validity
testing [ ofcourse u must have ability to test]
position management

if no system : poor trade result occurs with emotional trading.
when personal psychology not match with particular style
loss of oppurtunity[ missing oppurtunity due to fear]
wrong expectation

hence a system of timing must have 1. set up condition
2. entry
3. exit...profit target
4. risk analysis
5. exit ..contingency plan
…………………………………………………………………………………………………………
1st principle
..................ABC
A ACTIVATION ...TRADE ENTRY
B BELIEF .. if trade continue as wishes ok.
C CONSEQUENCE , If price turn opposite get out
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2nd principle
....................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


SYSTEM DESIGN
.....................
beginners bias : buy only ..one directional trade

condition : if nifty showing +bias..buy xyz stock
say today gtl ...@ 172...its moving further ++target175.
go back last week chart..it has given sufficient hints to move today / tomorrow...1130 move starts[ hope intraday players see it]

thursday and friday price hold ...fulfil my condition of trade

as a day trader 170 stop...target 175 achieved..

as a short term trader 165 stop...with 182..target...
so u understand why i a poor short term trader...before reaching of target more often than not it reaches my stop..so the loss in a/c

condition of short term entry is different than my momentum style..
so the confusion ...thats why i loss.
Fact is in short term with proper risk/reward no trade exist in gtl..
time extension linearly does not quantify a trade. it is a trap..hope factor
so for short term reversal at bottom or at 50% fibonacci level better alternative.
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system design
....................
day trading , short term , position trade and investment..4 r different scenario . condition for success in each ..has some peculiarity.

value investment [ works if u fit there.not suitable in present market]
...buy good stock with av p/e+ when price starts rising in weekly chart.

but for trading another concept..which shall give more score..consistent single
/2run by bangladesh against india..or wait and hit 4/6 run by bangladesh against south africa[ both match won by this novices..against superior pro]

u have to choose...1run day trade
2 run swing trade
4 run position trade
6 run multi bagger..nomore exists

[ if u r master trader,not a beginner like me,...try some portion of day winner to HOLD..SCORE 2RUN............another greedy[balanced greed ] view...BOOK 50% PROFIT IN SWING TRADE..LET OTHER 50% TO RUN FOR FURTHER PROFIT
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day trading system
..........................
to quote cv ' master ur craft.practice and practice...ignore all others'
understand simplicity and toughness...in it.u have to understand how price reflect everything..suitable indicator..derivative from price ..to study and maintain strength...and eye for order flow....
thats all...alas! one is sufficiently difficult...3 is awesome in real time.
thats why salute to cv!
u must have some method to understand price increament shall continue
and then another when price dilution coming.
[objectively a programmer can do,i am ignorant]3min/10min ma x...also 15min rsi has some use...big order coming in sell side has its impact.

whatever it may be , real time execution is key.alert helps

 

[oilman5]

high probable trade
............................
its the directional bias...where most waiting watchers r ready to join..
market buying r coming...big volume r increasing

concept is use momentum ...act now.

another concept a trend started yesterday 3pm..hence further steam left.
scan at night for candidate.

without any news. on real time..sudden volume surge..price is also moving up.
ACT NOW ..NO TIME TO THINK make money

note: this works i saw and made some lakhs.......... work in present market.
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shortterm trade/ swing trade
............................................
here u must reqd 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
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next position trading
..............................
personally i decide only some shortterm winner to be extended for long.

and today bpcl, hpcl ,visual have given position buy signal.
its basically chart ..after trend change suggested entry at predetermined pt

for me some% up with volume increase...in metastock RSC EXPLORER candidate must be in upperside.
yes i use eye ball technique and pattern failure[ in h&s when instead of fall price starts move up and w.pattern price slowly starts moving..acceptance of price]

my idea given money in past..i dont know whether shall it work now.
but i put real money
some other low risk idea r predefined omnitrader eod study.
support base has to be created..have u seen strong base support of rolta@78-82 ..2 yr back...after crossing 100..it never look back.

another criteria...when nifty starts moving up again after retracement
enter good candidate[GAIL ]

third unexpected good result published and buy volume shows high demand.
most imp part of position trade is stock list...here u know from back ground move shall continue..further..as u try for bigger profit ,failure rate is high.
hence u must have inbuild mmsystem to get out with small loss and addon winner....mark boucher course is very helpful.

say being in known field i must track some news on company..
also result out of infy ..how + affect midcap computer company..

as position trade is a judgement game..hit of the moment decision should NEVER be taken..infact temporary fall is a great buy oppurtunity

strength indicator on 2week chart basis [ ie converting data on 10day high-low-close basis available in metastock] is good way to see

 

[oilman5]

in rangebound market...william%r at oversold zone good indicator
in trend market , i use aroon .
after long fall, weekly chart engulfing bull i use for entry+ bill william’s chaos entry signal
.......for stop simple sar as available in metastock...apart form subjective pattern stop and time stop.
profit booking ...50% quick booking
if however quickly price moving up .instead of sell i buy double as its low risk trade[ in the language of traderji confirmation by price]
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-momentum short plan
.............................
this condition to be created by media..rumor of market shall goup ..vs pro have already sold..now some -divergence can be seen ...price slowly starts falling..now tv must speak again and again ..threat percept...more sell order coming in nifty future...NOW ONLY THE TIME for short...hence its a short term quick execution ..a bull market top trade ..with propaganda from media
otherwise harsh bad news....when most participant prefer to sit on cash[bulls r running away]

with hold ing stock its a conflicting trade..better sell holding first.

 

[oilman5]

for further study understand extended bullmarket and volatility condition
and see after quarterly result out how price is behaving
…………………………………
. assumption .....condition of trade....if it does not exist no trade
2. entry..particular signal
3. holding profit one...give time.
4. exit..with profit target
with loss.
5. contingency plan..to save skin.
6. write after complete..of trade what i learn ..implementation vs. reaction of me based on fact.

this all elements r clearly written ..what actually works.
OTHER ELEMENT
........................
u factor..how to be neutralised so that i can think right.before taking position i must have an openion but PRICE must confirm my openion otherwise i must use stop and book loss to throw away openion.
.MARKET HAS TRENDINESS AND ALSO UNPREDICTABILITY ELEMENT. NEWS AFFECT MARKET [UNKNOWN EVENT]....MAJORITY TRIES TO GUESS WHAT MAJORITY MAY DO , TAKING RISK OF PREDICTION BY PUTTING MONEY BUT READY TO RETREAT IF WRONG........PUT MORE MONEY WHEN RIGHT.

since u have asked i place my personal opinioned model
.................................................. ...........................
u have to work on prediction model in which chance of RIGHT/BEING WRONG has to evaluated.

a. company result..good business../..20% weightage
b. macro economy + moneyflow....40% weightage
c.sector business ..priority 20% weightage
d. other factor..operators game/random factor ..20% weightage

total 100%
ALWAYS TAKE CHANCE OF BEING WRONG 40%...SO THAT IF WRONG ...MUST BE PREPARED

by the chart , i SEE how others r viewing..ready with my move ..tv news guide me how fools shall behave,..many a time i am wrong ..but i stick to it.
as trading is not a game of perfection , 50%accuracy sufficient.
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here i write about a system..developed by jeff.
5 day momentum method
...................................
background : strong trending market
principle : pullback for fewdays and then again resume move
1-2-3-4 pattern [3day pullback]
pullback near 20dma and again moving up.
why? with this pullback ..mf and hni plan to enter.hence new moneyflow..
high momentum,high probability trade

scan.; 1.strong trending candidate
2. use oscillator ...watch pullback
3.trend reverse...now u enter.

indicator: adx..strength of direction
rel. strength ..ok
filter ; adx>30..+di>-di..di=demand index
rel strength..compare to other stock /nifty ..BETTER.
stokastic..%k<40 oversold indicator
set up
.......... BUY DAY. 1.TICK ABOVE YESTERDAYS HIGH.
2. OR NEXT DAY BUY ABOVE 3%UP
CONDITION : %K MUST BE MOVING UP

STOP : 1% BELOW LOW OF LAST DAY
OR 1.5 ATR BELOW FROM LOW OF TODAY
PATTERN LOOKS...1-2-3-4 ...4 IS INITIATING PT ABOVE 2.

PROFIT TARGET : 7% IN 3DAY
MAXM TIME 5DAY..OTHERWISE TIME STOP.

IF PROFIT OCCURS EARLIER THAN EXPECTED..ALLOW 50% HOLD TO RUN FOR TOTAL 10% PROFIT
strength of the system is % k must be allowed to move up..to be applied to bull market.
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so it is trade universe.3terms i introduce...exhausive, exclusive and intersection ie. interrelation between 2 element.
EXHAUSIVE..U HAVE TO GO INTO DETAIL
EXCLUSIVE..NO RELATION EXISTS..INDEPENDENT ELEMENT
INRERSECTION;INTERRELATION BETWEEN 2 ELEMENT...INTERRELATIONSHIP BETN MARKET...INTERRELATIONSHIP BETN MANY COMPANY IN A PARTICULAR SECTOR.
exhausive gives micro view.

so before reaching to become a master...one goes through various way to question and answer this 3 element...[may be in different name].he knows how far he understands...his limit..so now practice on regular basis[system]

and follow it diligently[discipline]
so i use 3 statistical term....

now u see all good thread ..search mode..nothing but ..can be expansion of 3 idea.

any other idea....yes EXECUTION.I DONT UNDERSTAND AS SLIPPAGE A BAD ELEMENT..BUT CV OPENS MY EYE,...i miss 3trades for slippage in intraday.
also some profit booking idea in real sense...so the difference with beginner and pro clearer to me..its IMPLEMENTATION.


HENCE THIS KEY WORDS U THINK IN THE LIGHT OF IMPLEMENTATION BY U.

EVERYTHING U CAN VISUALISE...

 

[oilman5]

QUESTION TO PRO
………………………………………….

1. why they r superior ?
2. what time frame they trade?
3. how far they r subjective in trading ?
4. what r the reason for their actual consistency ?
5. on what condition they dont trade ?
6. what is their contingency plan[enough is enough..now i am booking loss]
7. what self sabotage u find most difficult to overcome..yet how u have done it ?
8. do u think beginner trader[4yr amateur] can be like u oneday ?if yes. HOW!


Answer : Yes definetly
1. Understand maths behind indicators before u apply it to charts
2. Design a system and optimized it over instruments u prefer to trade and back test with tick data if possible
3. Foward test it for atleast 6 mo with vast range of instrument and compare with backtested performance
4. Dont belive any idiots who says market is predictable
5. Stick to system even if you see consecutive loosing trades but check you in range of expected drag down limits
6. Apply money managment principles
………………………………………………………………………………..
1. why they r superior ?
cos they dont follow others, dont believe what others say, but listen to everything and takes what matters (test, test, test. researching and testing is not the holy grail, but if there is any path, this is it). do you know what will be the performance of a random entry system with different money management on any instrument?

2. what time frame they trade?
anything that you can think of...

3. how far they r subjective in trading ?
cannot answer

4. what r the reason for their actual consistency ?

the same that goes for McGrath, tiger woods and federer.

5. on what condition they don't trade ?
many reasons...but how can i know all? got some from market wizard series.

6. what is their contingency plan[enough is enough..now i am booking loss]
depends on each trader, but they HAVE ONE and FOLLOW IT DILIGENTLY.

7. what self sabotage u find most difficult to overcome..yet how u have done it ?
predicting the market....mechanical system.

8. do u think beginner trader[4yr amateur] can be like u oneday ?if yes. HOW!

why do you want to be like me? then you will have to follow my style, which may not suit you. get what works for you. keep an open mind, but don't take anything on face value. Read - Practice - Practice - Read. btw, no of years has nothing to do with success...or else all 15 yr traders will be millionaires today...this is not time based promotion. u can be a very successful pro in 4 yrs too.

Trader2 : PROs would consider this as exposing their war chest... may reveal their stengths.... as well as the weakness.

In their view all others are enemies ( as CV had put it) because the money one makes from trading is the money somebody else will be losing.
This is a game where the losers play an important role.

Afterall this is their bread and butter .... so the human survival instinct comes into picture.... Though the fact may be a few hundreds in the forum knowing your system would not make anybody a loser...there are millions playing te market.... Also knowing a system does not make a winner... the person executing the system has a large role to play..

Also will a PRO really talk about the losses?? I doubt...I remember somebody telling us in the chat room that he has 90% winners !! 90% winners and he was still working as a sub broker.... mmm... sub broker business was more profitable than trading with 90% success...

I myself am not a PRO. I have a good, satisfying and well paying job. But of course TA is a passion... almost bordering on obsession...

I do lot of study and experiment with lot of indicators ...but my positional trades are mainly based a few simple momentum based cranked up stuff
Ofcourse I do have my losers but overall it has been good. Also the absence of complusion to make money from trading has helped me to become better in my trading .. I suppose..

TRADER 3
……………………
1. why they r superior ?
ans. they are superior by experience and rationality.THEY JUST HAVE BETTER CONTROL OVER THEIR EMOTIONS AND ARE DISCIPLINES.they have better execution skill .
2. what time frame they trade?
ans. as they found which suit them with comfort and making money.
3. how far they r subjective in trading ?
ans. no subjectvity.as per system ..entry -exit condition r predefined.however
some sentimental condition r checked.
4. what r the reason for their actual consistency ?
ans.right plan and implementation.improving success rate.
5. on what condition they dont trade ?
ans. condition not suiting their plan. when r/r ratio not favourable.
6. what is their contingency plan[enough is enough..now i am booking loss]?
ans. inbuild in the system.[hence nothing to worry]

7. what self sabotage u find most difficult to overcome..yet how u have done it ?
ans.not following the plan.distract by others openion...soln . follow price in a disciplined way.
8. do u think beginner trader[4yr amateur] can be like u oneday ?if yes. HOW!

ans. yes . discipline and a solid implemention plan including slippage.understand market and good money management.[ignore media]
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so we clearly see some difference betn pro and serious amateur.
no1. level of comfort and serenity.
no2. least subjective.
no3.worst scenario is already planned and mastery over implemention.
key word is discipline and practicing their tool.
so from beginner u r moving on top...here u atleast know how to survive..irrespective of market u can run ur family by winning against other traders.
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so u r developing trading philosophy...plan new arsenal...to fight better.
so in is trade universe.3terms i introduce...exhausive, exclusive and intersection ie. interrelation between 2 element.
EXHAUSIVE..U HAVE TO GO INTO DETAIL
EXCLUSIVE..NO RELATION EXISTS..INDEPENDENT ELEMENT
INRERSECTION;INTERRELATION BETWEEN 2 ELEMENT...INTERRELATIONSHIP BETN MARKET...INTERRELATIONSHIP BETN MANY COMPANY IN A PARTICULAR SECTOR.
exhausive gives micro view.

so before reaching to become a master...one goes through various way to question and answer this 3 element...[may be in different name].he knows how far he understands...his limit..so now practice on regular basis[system]

and follow it diligently[discipline]
so i use 3 statistical term....

now u see all good thread ..search mode..nothing but ..can be expansion of 3 idea.

any other idea....yes EXECUTION.I DONT UNDERSTAND AS SLIPPAGE A BAD ELEMENT..BUT CV OPENS MY EYE,...i miss 3trades for slippage in intraday.
also some profit booking idea in real sense...so the difference with beginner and pro clearer to me..its IMPLEMENTATION.


HENCE THIS KEY WORDS U THINK IN THE LIGHT OF IMPLEMENTATION BY U.
urther elaborating the tools
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for intraday..its nothing but orderflow....price higher high break out concept.

for eod....predefined scanner.[u have to decide what u want]
for shortterm...support buy..
oversold condition...now price just starts to reverse.
[ suitable indicator signal which u rely]
for position play...some news impact not yet discounted in price.
continuty of trend in price[ma based]
something to check strength.
IMP: MINIMISING SUBJECTIVITY AND MEDIA HULLABULLA..IS UR JOB.
NEVER BELIEVE IN VALUE BUY AS A TRADER.NEVER FORGET STOPLOSS
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i dont know,whether i am right to write here....forbidden art of trading will be exposed here.many a pro r available here in this great forum...i request them to make comments.
1. why they r superior ?
There is nobody superior or inferior as far as markets are concerned.......and the time you do feel that you are superior,that will be when the market cuts you down to size.

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2. what time frame they trade?
Intradays and position trading.......love playing the weekly as well as the 5min charts.

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3. how far they r subjective in trading ?
Used to love words like "subjective","mystical","intuition" once upon a time.......nowadays,the attitude is more to objectification of the whole process.Do whatever it takes,an automated system,or set points of entry,exit and the discipline to always follow the rules of your trading plan.Whatever........but one cannot beat all this fear and greed and hope,by joining the crowd.One therefore stands aside,follows the rules,practically robotic,day after day.

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4. what r the reasons for their actual consistency ?
A trading plan of attack,and then the discipline to follow it to the tee.


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5. on what condition they dont trade ?
There are many,like achieving the targets and more for the month.Also not trading if taking a hit and a predefined percentage point is hit.Or if there is some sort of family emergency......etc etc.

Of course,importantly,when I have a rip roaring,rollicking bullish 60min,I do NOT trade the 5min and stupidly go short.There is enough profits to be made just following the trend of the 60min and trading the 5.

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6. what is their contingency plan[enough is enough..now i am booking loss
Hmm.......stop loss for every trade.Position sizing appropriately.Set Risk percent per trade.Monitoring average wins,losses,drawdowns......blah blahblah,think that what everybody here already knows.

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7. what self sabotage u find most difficult to overcome..yet how u have done it ?
Anticipating a move before it happens,trying to get in even before your trading strategy says so.........got licked many times doing that.But not too much of a problem these days .........now in only when the move happens.


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8. do u think beginner trader[4yr amateur] can be like u oneday ?if yes. HOW!
Any fool can be a trader,every beginner trader can one day become an experienced one.Every trader with a plan and strategy that works can make money off the markets.Why then are 99% people failing at the markets?They go by what a newsletter,a self proclaimed guru,their broker,etc tells them to do.They go by their gut feel,or their neighbour's gut feel.They believe that making money is an evil act.They believe that trading the markets is for spare change .They have yet to educate themselves.They have no plan,no modus operandi,no strategy,no plan of attack...............

Approach trading like a business,have a business plan,a trading plan.We are in this to make money and lots of it,as in any business.But strangely,to make lots of money,you have to shift the mind's focus from making money to putting in that perfect trade.Although it's one and the same,you have to maintain focus on the trades.

Everything is cold,calculated strategy and then a disciplined implementation.We are in this to capitalise on other people's fear and other people's greed.......and for that,your own mind cannot work in the process of fear and greed.It has to be quiet.In the present moment.Practically like meditation.

Can anybody and everybody do it?Of course,provided you do all what it takes to be a trader.But sadly,that will never be the case........99% will always lose,not because it's difficult,but because these 99% will not approach it with a plan,with the required discipline.........That stat will always remain.

Can you be that 1%?Surely and definitely,provided you are willing to pay time and energy and focus to making yourself a great trader.