General Trading Chat

[lemondew]

Jesse livermore was the guy who made millions had his own yacht and lost more than millions Finally bankrupt committed suicide.

:annoyed: :annoyed: May be a lesson to play conservative stick to MM.

“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages.” – Jesse Livermore

“When I get hurt in the market, I get the hell out. It doesn’t matter at all where the market is trading. I just get out, because I believe that once you’re hurt in the market, your decisions are going to be far less objective than they are when you’re doing well… If you stick around when the market is severely against you, sooner or later they are going to carry you out.” – Randy McKay

 

[amitrandive]

Jesse livermore was the guy who made millions had his own yacht and lost more than millions Finally bankrupt committed suicide.

:annoyed: :annoyed: May be a lesson to play conservative stick to MM.

We learn more from failure than success.

Success is a lousy teacher.It seduces you into thinking that you can never go wrong.

Some good lessons to be learnt from his life

http://thereformedbroker.com/2013/08/03/nine-surprising-things-jesse-livermore-said/

Jesse Livermore’s legacy is a bit of a double-edged sword…

On the one hand, he was the first to codify the ancient language of supply and demand that is every bit as relevant 100 years later as it was when he first relayed it to biographer Edwin Lefèvre. Livermore himself sums it up thusly:

On the other hand, Livermore’s undoing came at precisely the moments in which he ignored his own advice. After repeated admonitions about tipsters, for example, Jesse allowed a tip on cotton to lead to a massive loss which grew even larger as he sat on it – violating yet another of his own cardinal rules.

And of course, other than for a few moments of temporary triumph in the trading pits and bucket shops of the era, Jesse Livermore was not a happy man. “Things haven’t gone well with me,” he informed one of his many wives by handwritten note, before putting a bullet through his own head in the cloakroom of the Sherry-Netherland Hotel.

But he did leave behind a wealth of knowledge about the art of speculation. His exploits (and cautionary tales of woe) have educated, influenced and inspired every generation of trader since Reminiscences was first published in 1923.

In my opinion, some of the most useful bits of knowledge we get from the book concern Jesse’s discussion of timeframes and patience. Many traders, particularly rookies, approach the game with the idea that they’re supposed to be constantly doing something – in and out, with a trembling finger poised to click the mouse again and again. Consequently, they get on the treadmill of booking wins and losses without ever really moving the needle. They end up with tons of brokerage commissions and taxes to show for their efforts, but not much else.

Being a trader doesn’t mean one must always be executing a trade, just as being a house painter doesn’t mean that every surface needs an endless series of coats.

Many rookies are surprised to learn that Livermore, the idol of so many great traders, advocated a lower maintenance, higher patience approach as he matured. In his early days, Livermore was dependent on the short-term funding and scalping activity of the bucket shops. Once he graduated and had his own capital, he was able to lengthen position holding times and could even afford to do nothing for extended periods.

Jesse was a trader but he knew the value of staying with positions and sometimes not trading at all. Once he began to follow tips from others or trade when he should have abstained, all of his progress had come undone, and with it, his sanity.

We are fortunate to be able to learn from his mistakes and to sidestep the errors that eventually cost him everything.

 

[mudraatrader]

sensing another snakeoba move !!!!!
will it be now or later

 

[jassinko]

premium of NF is decreasing.... 28 from yesterday to 10 now....... is this show short buildup????

 

[vikas2131]

sbi is on the great run...it seems to me... 250 will be touched very soon...

 

[niftytaurus]

Between Capital formation and Capital Preservation there is one stage of Capital Growth. In this stage trader adds 80-85 % of his profits ( after taxes) into his capital and trades aggressively. This is the stage where the capital is grown exponentially,as the profits are much bigger than the withdrawal for expenses.

Every trader has to walk this path in his trading career.

Smart_trade

Dear St Sir
Please put some light on scaling up the trading business..I mean how can we scale up trading business ? as a price action discreationary trader, we cant concentrate on more than 1-2 scrip.so how to scale up as a price action trader? as somebody have another buisness..if they succesfully run 1 shop, they can invest their profit & start another shop/factory..other buisness can scale up easily..& they grow exponentially ..they can set more branches & increase income..but in our business, how can e do that
1) suppose some trader initially invests 10 lakh / 20 lakh as initial capital and makes on an average 10 percent profit per month ,he doesn't withdraw any money out of trading for expenses ( he has other sources to take care of household expenses) he invested all 100 % profit in the same trading business , so he can compound his money at the rate of 10% @month.
after 2-3 years, it can be a huge capital..then how to trade with that amount..as scrips are limited..what about 5 -8 years, how will he scale up that tradign business?
2) how does & how much can we scale up that business?
3) you know many senior & profitable trader who has been in this period for a very long time..what is the limitation of scaling up this businees for them?I meant after a certain capital, they need to withdraw money & invest in other business?what is the maximum limit of capital to invest in this buisness?
4) If After a certain time, there is limit for scale up, so do we need to do other businesses for more income ?if we dont want to ivest in other business or we dont want to invest in real estate or long term equity etc, then what is our options to trade?
as price action trader, we cant concentrate on more scrips or more markets..then how to scale up?
I know I am sounding follish or like mungeri lal key haseen sapney...but i beileive nothing is impossible..
please share your view
thanks

 

[timepass]

30 pts range on NF ??

Maybe some big move is coming in the last hour.

 

[Blackhole]

30 pts range on NF ??

Maybe some big move is coming in the last hour.

May be tomorrow...BNF weekly option Expiry......till now its NR in NF

 

[jassinko]

some time having two or three knowledge confuses a lot..... by seeing trend..... looking like upside...... by looking premium reducing and OI increase....looking like shorters are coming........ OI chain shows buildup at 8300 call..... bearish.... PA suggest sideways ........ seniors how u manage multiple knowledge...... and finally gut feeling seeing all says bullish breakout about to happen........

 

[jain.er]

Dear St Sir
Please put some light on scaling up the trading business..I mean how can we scale up trading business ? as a price action discreationary trader, we cant concentrate on more than 1-2 scrip.so how to scale up as a price action trader? as somebody have another buisness..if they succesfully run 1 shop, they can invest their profit & start another shop/factory..other buisness can scale up easily..& they grow exponentially ..they can set more branches & increase income..but in our business, how can e do that
1) suppose some trader initially invests 10 lakh / 20 lakh as initial capital and makes on an average 10 percent profit per month ,he doesn't withdraw any money out of trading for expenses ( he has other sources to take care of household expenses) he invested all 100 % profit in the same trading business , so he can compound his money at the rate of 10% @month.
after 2-3 years, it can be a huge capital..then how to trade with that amount..as scrips are limited..what about 5 -8 years, how will he scale up that tradign business?
2) how does & how much can we scale up that business?
3) you know many senior & profitable trader who has been in this period for a very long time..what is the limitation of scaling up this businees for them?I meant after a certain capital, they need to withdraw money & invest in other business?what is the maximum limit of capital to invest in this buisness?
4) If After a certain time, there is limit for scale up, so do we need to do other businesses for more income ?if we dont want to ivest in other business or we dont want to invest in real estate or long term equity etc, then what is our options to trade?
as price action trader, we cant concentrate on more scrips or more markets..then how to scale up?
I know I am sounding follish or like mungeri lal key haseen sapney...but i beileive nothing is impossible..
please share your view
thanks

EVen before you said it I too thought that you are day dreaming...I also do this sometimes