Words of Wisdom from our experience...

[Romeo and Elliott]

Nice thread.

Day trading and positional / Swing trading are two ENTIRELY differnt things.

I'm not saying one cant have both skills [nothing stops an engineer fm being a Doctor too].

It depends on yr captial / study and faith in market moves.

One thing however is, no matter what kind of trader you are, you HAVE to STICK TO yr strategy (ive failed miserably at times and lost on winning positions, just fear and premature exist even with absolute minimal stop-losses)

THE FARMER AND THE BRAHMIN :
'========================
Farmer : I know its the month of June, winds turned westernly some time ago, and i see dark clouds, i think its going to rain. Ive seen it happen.

Brahmin : Depends on what the gods want. If they want it to rain, its going to rain.

Farmer : So, should i go ahead with my farming plans as per rains or not ?

Brahmin : If the gods want it to rain it will, if they dont, it wont. I know cuz ive read the books, all of them.

Farmer : Then give me a series of valid predictions on rains.

Brahmin : God works in mysterious ways.
'=================================
Farmer : Tech Analyst
God : Market makers
Brahmin: A believer.

If you are a Farmer, you will most likely take positional trades.

If you are a Brahmin, you will most likely take day-trades (after-all god works in mysterious ways.. sometimes leaving us spellbound)

'=================================

When the seasons right, the clouds dark and the winds fm the west, i know it rains most of the time, so i go with it. Ive seen it work.. over and over, so ill stick to positional trades.

'=======================================================

As for stock manupilation, ive never seen a valid position failing - Ever. Except on some drastic news, event, but thats not 'stock manupilation'

To ayone who says theve seen something just 'suddenly reverse' i'd just ask what wave was the person in. I thnk a far better approach is to question 'what did i see wrong in this entry'.

In the end it IS the study of supply and demand, to say that technicals mean nothing is to say the markets dont work on supply and demand. And if thats the case, one better get in touch with God.

 

[Romeo and Elliott]

Dear friends,
.............
2.Trade only in index i.e Nifty as it is not easy to manipulate and you have a normal playing field. you are not dependent on tips, insider information etc. Moreover people like us are likely to be the last one in the queue to get these kind of information. By the time it reaches us these tips will be useless.

I disagree, ANYTHING you can predict with a 90+ % probability, go for it.. take it, its yr reward.

4. There are no successful day trader. PLS remember only way to make a profit in the market is through positional trades.

I disagree, i know I cannot day-trade cuz I am not nimble enough, but that doesnt mean no one can.
It a bit like my cake-shop friend telling me "No one has ever made money off the stock market" thats cuz he never tried undertsanding it or failed at it

On Options and Turtle trading : I'm lost on both counts.

.............

 

[Smart_trade]

Came across this interesting thread.As these are personal experiences of an indivisual ,everyone is entitled to his views and experiences .Every trader is a different person psychologically and mental set up wise.

Some of the posts above are interesting and they add to my ever increasing knowledge about markets,market participants , their experiences and their beliefs.

Smart_trade

 

[nirbhay Dixit]

You are absolutely right these are personal experiences, and as we evolve we may look at the same things with a different perspective.

 

[nirbhay Dixit]

.............

Hey I think stocks have three degrees of freedom, Up, Down, Nothing.

 

[nirbhay Dixit]

Hey as I am positional trader. I keep initial stop losses a bit liberal. With tight stop losses I used to get stop lossed too frequently and then didn't have the courage to do it again when market moved the way I had initially anticipated.

 

[nirbhay Dixit]

Dear Friends,

I don't know how many of us understand this. I found it today going through a book on technical analysis.

Lets take a hypothetical situation. We start with Rs 1000

Situation 1
We make first a profit of 10% then a loss of 10%

Situation 2
We first make first a loss of 10% and then a profit of 10 %

What will be the net amount after this two trades??

In both case it will be


=1000*(110/100)*(90/100) = 990 In the first case

=1000*(90/100)*(110/100) = 990 in the second case.


So even with the same percentage increase or decrease in the price we still loose the money. Note we have not added any transaction cost (brokerages, taxes etc).

The Holy grail is don't over trade. If not brokerage then mathematics will kill us.

 

[EagleOne]

My dear RE
It is great to see that in public you are as honest and sincere about your convictions as in our private interactions. Although most of the times we disagee on almost all the market issues , but I always felt great pride having a brave and honest friend like you. So next time when you feel hurt or angry because of my impatience or caustic remarks, remember what I just said above - publically!

I hope we would keep flying as wingmates for many years to come.
Have a nice a day.

Nice thread.

Day trading and positional / Swing trading are two ENTIRELY differnt things.

I'm not saying one cant have both skills [nothing stops an engineer fm being a Doctor too].

It depends on yr captial / study and faith in market moves.

One thing however is, no matter what kind of trader you are, you HAVE to STICK TO yr strategy (ive failed miserably at times and lost on winning positions, just fear and premature exist even with absolute minimal stop-losses)

....

As for stock manupilation, ive never seen a valid position failing - Ever. Except on some drastic news, event, but thats not 'stock manupilation'

To ayone who says theve seen something just 'suddenly reverse' i'd just ask what wave was the person in. I thnk a far better approach is to question 'what did i see wrong in this entry'.

In the end it IS the study of supply and demand, to say that technicals mean nothing is to say the markets dont work on supply and demand. And if thats the case, one better get in touch with God.

 

[EagleOne]

Nirbhay, now you are talking your experience - good!
If you are into postional trading, suggest you contact one of TJ's mods, SG (Savant Garde). He is good, very good in turning enevitable positional losses into profits. I know his strategy (he was generous enough to explain it to me in private with examples). It is very clever and logical. I used it a couple of times, and it worked! But beware: the method is counterproductive to the one who is prone to panic, and has miser's ledger.

Good luck.

Hey as I am positional trader. I keep initial stop losses a bit liberal. With tight stop losses I used to get stop lossed too frequently and then didn't have the courage to do it again when market moved the way I had initially anticipated.

 

[Smart_trade]

Dear Friends,

I don't know how many of us understand this. I found it today going through a book on technical analysis.

Lets take a hypothetical situation. We start with Rs 1000

Situation 1
We make first a profit of 10% then a loss of 10%

Situation 2
We first make first a loss of 10% and then a profit of 10 %

What will be the net amount after this two trades??

In both case it will be


=1000*(110/100)*(90/100) = 990 In the first case

=1000*(90/100)*(110/100) = 990 in the second case.


So even with the same percentage increase or decrease in the price we still loose the money. Note we have not added any transaction cost (brokerages, taxes etc).

The Holy grail is don't over trade. If not brokerage then mathematics will kill us.

Just see whether and how all the calculations change in the following situation :

If on loosing trades you loose X % and on winning trades you make 2 X or 3 X profits........and assume that you make 60 % winning trades and 40 % loosing trades which is a fair assumption if you are trading a competent method.

Smart_trade