General Trading Chat
- Thread starter timepass
- Start date
- Tags idle thoughts trading talk only
I will give short answers in the same serial order as the questions.
1) I came to stock markets at the age of 26-27 but that was mainly for investments in stock markets. Invested in FERA diluting companies,new issues and companies like Reliance,Colgate,L&T ,Hind Lever, Tata Steel etc. There was no thought of trading as I was in a high paying job . Trading I started from age of 35 and my first trade was sell of 50 Telco in cash market in daytrade.
2) Started trading full time from the age of 40 on small capital and that was definately tough to support household expenses and HDFC housing loan installments on trading income as there was no second source of income.
3) It took me almost 4-5 years to be a consistantly profitable trader.There were many up and downs in that period.The performance improved when I started understanding that I should not get attached to my analysis and the action of the market is supreme and I have to adjust myself according to that. Analysis should take a backseat and price should take a driver's seat in our trading.And if analysis and price action both match, there you have a winning combination.
Smart_trade
1) I came to stock markets at the age of 26-27 but that was mainly for investments in stock markets. Invested in FERA diluting companies,new issues and companies like Reliance,Colgate,L&T ,Hind Lever, Tata Steel etc. There was no thought of trading as I was in a high paying job . Trading I started from age of 35 and my first trade was sell of 50 Telco in cash market in daytrade.
2) Started trading full time from the age of 40 on small capital and that was definately tough to support household expenses and HDFC housing loan installments on trading income as there was no second source of income.
3) It took me almost 4-5 years to be a consistantly profitable trader.There were many up and downs in that period.The performance improved when I started understanding that I should not get attached to my analysis and the action of the market is supreme and I have to adjust myself according to that. Analysis should take a backseat and price should take a driver's seat in our trading.And if analysis and price action both match, there you have a winning combination.
Smart_trade
Regarding trade size, lot depends on method you possess which should have an edge,and by edge we mean three points
1. Reasonable success rate with low risk
2. Entry and exit without conflict and stress
3. Trade decisions should be dictated my price action,not by preconceived believes and opinion
Most method/s of price action fails at second point
IMO and many have addressed this and trading with bigger position but before this..words of Paul Tudor Jones are worth to remember
1. Reasonable success rate with low risk
2. Entry and exit without conflict and stress
3. Trade decisions should be dictated my price action,not by preconceived believes and opinion
Most method/s of price action fails at second point
IMO and many have addressed this and trading with bigger position but before this..words of Paul Tudor Jones are worth to remember
An article from "Futures" magazine.
http://www.futuresmag.com/2011/12/31/simple-money-management-wins-over-time?page=1
Smart_trade
http://www.futuresmag.com/2011/12/31/simple-money-management-wins-over-time?page=1
Smart_trade
ST sir, you must have met many successful traders, just wanted to know in general how they took experience in initial years, I watched some interviews and read about successful traders and many of them had past experience with prop trading firms, hedge funds, mutual funds, who then went on to trade for themselves.
In Indian markets, if we see fund managers, most of them began their corporate journey with mutual funds, private equity firms
Just wanted to know your views on when it comes to corporate experience, both in investing and trading for new traders.
In Indian markets, if we see fund managers, most of them began their corporate journey with mutual funds, private equity firms
Just wanted to know your views on when it comes to corporate experience, both in investing and trading for new traders.
Very good article ST !!
1. Many traders try to predict the trade sequences .. (for eg:, if 5 trades are winners in a row, then they expect the sixth trade to be a loser and would not pull the trigger or would reduce the size drastically expecting a losing trade) .. The worst part is when we reverse the situation..if 5 trades are losers in a row, then they increase their size for the 6th trade expecting a winner. But, market gives another losing trade. Now, they are deep hole(both mentally and financially). it is often easy to come out of financial ruin but if we drain our mental capital, it will create chaos. Sequencing assumption can be very fatal in trading !! Most of us dont talk about it but this bias is very real.
2. Article says "Over time, it is a virtual certainty that at some point all traders will suffer a long series of losing trades." - Many of us think that it would never happen to us. But over a period of 1000/10k trades, it will happen. There is no guarantee in trading but this is a done deal !! So, preparing for the worst case scenario would save us from the 'rare' event of hitting the worst case scenario.
Happy trading all
1. Many traders try to predict the trade sequences .. (for eg:, if 5 trades are winners in a row, then they expect the sixth trade to be a loser and would not pull the trigger or would reduce the size drastically expecting a losing trade) .. The worst part is when we reverse the situation..if 5 trades are losers in a row, then they increase their size for the 6th trade expecting a winner. But, market gives another losing trade. Now, they are deep hole(both mentally and financially). it is often easy to come out of financial ruin but if we drain our mental capital, it will create chaos. Sequencing assumption can be very fatal in trading !! Most of us dont talk about it but this bias is very real.
2. Article says "Over time, it is a virtual certainty that at some point all traders will suffer a long series of losing trades." - Many of us think that it would never happen to us. But over a period of 1000/10k trades, it will happen. There is no guarantee in trading but this is a done deal !! So, preparing for the worst case scenario would save us from the 'rare' event of hitting the worst case scenario.
Happy trading all
I have met many successful traders and they come from two catagories as under :
1)Traders with trading background : These are traders who have some business in the family. They might have timbre,grains,steel,cement ,medical etc business with shop,wholesale or agency set ups. These traders dont understand high funds things like Discounted Cash Flow, ROI ,breakeven analysis etc but they understand money and profits very well. So they will say something like " 8000 ka teji khota lagta hai instead of saying 8000 is a strong resistance for Nifty." They are astute traders and some of them are hugely successful in trading.They dont have much of formal education.They are "Bhav Bhagwan Che " type traders and have very good risk control. One of the old traders told me once that if the closing is against your position, never carry the position home, get out of it.One of the best advice I got from this trader ( we used to call him kaka.)
2) Traders from professional background : These traders are having formal education, they are engineers,MBAs ,CAs,ACS,ICWA,Doctors. They have understanding of finance concepts and they have probably worked in finance ,mutual funds,hedge funds,financial institutions,banks etc. Few of them are from Army or defence forces background and they have done some training in finance like MBA or DBM. These traders trade on new concepts,statistics,price action, technical analysis etc.In my view some experience in corporate world in finance helps though not essential.These traders have service class family background.
There are some traders who have both the above ie they are professionally qualified and also they have business background.
Smart_trade
1)Traders with trading background : These are traders who have some business in the family. They might have timbre,grains,steel,cement ,medical etc business with shop,wholesale or agency set ups. These traders dont understand high funds things like Discounted Cash Flow, ROI ,breakeven analysis etc but they understand money and profits very well. So they will say something like " 8000 ka teji khota lagta hai instead of saying 8000 is a strong resistance for Nifty." They are astute traders and some of them are hugely successful in trading.They dont have much of formal education.They are "Bhav Bhagwan Che " type traders and have very good risk control. One of the old traders told me once that if the closing is against your position, never carry the position home, get out of it.One of the best advice I got from this trader ( we used to call him kaka.)
2) Traders from professional background : These traders are having formal education, they are engineers,MBAs ,CAs,ACS,ICWA,Doctors. They have understanding of finance concepts and they have probably worked in finance ,mutual funds,hedge funds,financial institutions,banks etc. Few of them are from Army or defence forces background and they have done some training in finance like MBA or DBM. These traders trade on new concepts,statistics,price action, technical analysis etc.In my view some experience in corporate world in finance helps though not essential.These traders have service class family background.
There are some traders who have both the above ie they are professionally qualified and also they have business background.
Smart_trade
Very good article ST !!
1. Many traders try to predict the trade sequences .. (for eg:, if 5 trades are winners in a row, then they expect the sixth trade to be a loser and would not pull the trigger or would reduce the size drastically expecting a losing trade) .. The worst part is when we reverse the situation..if 5 trades are losers in a row, then they increase their size for the 6th trade expecting a winner. But, market gives another losing trade. Now, they are deep hole(both mentally and financially). it is often easy to come out of financial ruin but if we drain our mental capital, it will create chaos. Sequencing assumption can be very fatal in trading !! Most of us dont talk about it but this bias is very real.
2. Article says "Over time, it is a virtual certainty that at some point all traders will suffer a long series of losing trades." - Many of us think that it would never happen to us. But over a period of 1000/10k trades, it will happen. There is no guarantee in trading but this is a done deal !! So, preparing for the worst case scenario would save us from the 'rare' event of hitting the worst case scenario.
Happy trading all
1. Many traders try to predict the trade sequences .. (for eg:, if 5 trades are winners in a row, then they expect the sixth trade to be a loser and would not pull the trigger or would reduce the size drastically expecting a losing trade) .. The worst part is when we reverse the situation..if 5 trades are losers in a row, then they increase their size for the 6th trade expecting a winner. But, market gives another losing trade. Now, they are deep hole(both mentally and financially). it is often easy to come out of financial ruin but if we drain our mental capital, it will create chaos. Sequencing assumption can be very fatal in trading !! Most of us dont talk about it but this bias is very real.
2. Article says "Over time, it is a virtual certainty that at some point all traders will suffer a long series of losing trades." - Many of us think that it would never happen to us. But over a period of 1000/10k trades, it will happen. There is no guarantee in trading but this is a done deal !! So, preparing for the worst case scenario would save us from the 'rare' event of hitting the worst case scenario.
Happy trading all
ST
Similar threads
-
My Views on the General Elections 2024
- Started by Verde
- Replies: 21
-
-
What are some general and basic price-volume action pattern one should know?
- Started by shyttrader
- Replies: 1
-
-