Is anyone making money in sharemarket ?

[Mr.G]

I do not understand the "I buy more" concept.

I mean, lets say one has a total cash of Rs.50L
Then he won't use the entire cash at one go... probably only 30%. If the price comes lower he will buy more.... But what if... price head for the sky... and do not come down at all... then rest of the cash sits ideal... bringing down the Rate of return.

The goal of fundamental analysis is to save and put away wealth for a long time and store it. So I started with fixed money and got my fund running. Then I get monthly investments too. I use the monthly money and dividend income to buy more. If I have no opportunity I use the money for commodity arbitration. It's a very complicated and boring method. 99% people won't use it. It is the most boring but consistent way to make money in the long run. I don't mind doubling my money every 5 years plus getting increased dividend income with that.

 

[Mr.G]

If prices go high then I use other for commodity arbitration or just don't accept the amount and refer them to company FDs, which have been researched by me. I use them instead of bonds. And company FDs can be later sold on B. Market.

 

[musicjunkie]

What you say does not need further affirmation. You are a senior and successful trader and that fact is surely known by older members.

I would like to add a bit to the above:

Two major hurdles a trader faces after accomplishing what MJ typed out.

1) Taking ALL SLs and taking ALL entries.

2) Boom and Bust Cycle.

Both these hurdles require growth in two very different directions. And hence are responsible for ousting the maximum number of aspirants.

I like to read and learn about these things so talking comes naturally

Thank you for the add amit, very nice point.

Since we are in add and append mode might I add one more?

1) There will be a time when everything WILL go wrong with your trades, you will follow the trades to the tee but will still fail. While many will see this as permanent failure it is actually part of a cycle.
This cycle could be a drastic change in volatility or some other reason.
My point was that the probabilistic nature of everything (not only a method) will bring a time of disruption, if your method/money management can come through this phase successfully then you would have found solace.

My such disruptive phase came in Dec 2012, would love to share a chart if it's not out of context. It lasted a month, in the end it was profitable but trading was truly a nightmare.
We all learn so much from each others experience than anything else.

MJ-

 

[jamit_05]

Thank you for the add amit, very nice point.

Since we are in add and append mode might I add one more?

1) There will be a time when everything WILL go wrong with your trades, you will follow the trades to the tee but will still fail. While many will see this as permanent failure it is actually part of a cycle.
This cycle could be a drastic change in volatility or some other reason.
My point was that the probabilistic nature of everything (not only a method) will bring a time of disruption, if your method/money management can come through this phase successfully then you would have found solace.

My such disruptive phase came in Dec 2012, would love to share a chart if it's not out of context. It lasted a month, in the end it was profitable but trading was truly a nightmare.
We all learn so much from each others experience than anything else.

MJ-

Please post the chart...

 

[musicjunkie]

Sorry for the late reply,
I have marked the entries only, and the screenshot is of a higher time frame so I could fit everything in one chart.
The numbers are rounded off. Risk per trade on the chart is Rs 10,000 per trade.
-10k is minus Rupees 10,000
+30k is rupees 30,000

Point is, methods do go through rough periods, law of infinite probability?

Hope the food for thought helped
MJ-