Dear Friends,
Market is not a zero sum game. If you are earning profit someone else is booking loss for the same. Its a battle for own survival. Anyone who is serious to earn need to some efforts. Its not like copying someone else style you can earn it too. Its not that easy. Your mental character is your biggest asset/liability coming into your trades.How you behave after profit/loss is your test of mental strength.
I am trading in markets since pre-2000...In my initial days i just started with magazines reading and newspapers...Investing purely on that little information...Its just buying what is in news and if getting profit book it...If loss keep averaging...
Busted my account after doubling it...First chapter over...Earned CFA, started thinking like a pure fundamental guy and investing using the same...Busted with fundamentals also...Indian markets were so rigged during those times...Any Small/midcaps scrips run like a mad one and keep falling like there was end to the world the next day...
With engineering background, i am well versed with softwares...Visited bombay got hold of TA software from one of my friend...Started learning it...With tools like, trendlines,Movingaverage, support-Resistance...and few indicators like RSI-MACD...Earned some handsome money by following simple tools...Busted the account second time in fall of 2001...TA was good but little lacked 'Focus' as i am still trying to average down the loosing scrips...Then learned some advanced TA of Elliott Wave...Then started bull run of 2003, every scrip has honeymoon run during those days...you even dont need chart/Fundamental knowledge to have profit...as IPO mania is going on, invest in IPO book 30-40% on listing day...get out...have party...Apply for multiple lots with multiple accounts in your family members name...simple...
Some of scrips are running like mad one,extending '5'th waves...but as a poor retail guy i dont have 'Patience' to sit for so long...The bubble busted in Jan-2008...i booked losses in many scrips...account was again down by 70%...Again tried hand on newer technical studies like market profile...but not have any confidence in it...
I am a regular silent visitor of TJ from 2007...learned some nuggets from saint's thread...Tradewithhunter, SH's thread...Simple strategies but still everyone is not having same results...as it takes 'Discipline' to follow it to the core...If three of your trades have loss by 3-15 method, you must be reluctant to take fourth trade...but that was the golden trade as it might overcame all losses of prior trades and still get you into profit...But how many takes that fourth trade is more important than raising doubts on method itself...
There are many gems here in TJ...Karthik marar the VSA champion...Even his VSA notes are followed by some foreign trading rooms...such is the study of this man...Its his 'Dedication' and 'Hardwork' which he is following till now...
I analysed my trades, and have a feeling i am lacking decision making to cover positions in my intraday trades...so i shifted to trading swings only...Then question arised which strategy...what method to follow...
I started with what i learned in my initial days...Support-Resistance, Moving average, Trendlines...i analysed although i am earning with this method i busted only as i am averaging scrips, reluctant to book loss...Changing stoploss frequently but still not following it...So small loss are soon converting to bigger losses...
I started to focus on price action more...reading charts without any indicators...This thread is not for teaching anybody, its for writings of my observations on market...What i am following, my thought process...I sometimes when analyse trades from starting of this thread, i laugh at myself, 'How can i go long' in downtrending scrips...Now i am a pure trendfollower guy, i react. I am not here to predict, market will do whatever it wanna do, but i will stick with my plan. and mind you, till today i am still not having that 'Discipline' to sit tight on profit trades...One thing i am now got hold off is cutting loss trades ruthlessly, but its sitting tight on profit required lot of mental character, this is what i learned in market...
This is gist of my trading journey...
For one who is new into markets...Believe yourself...Even if you got hold of 'Holygrail' still without discipline you will make hell out of it...Follow method which suits your character...We here in TJ have different methods for intraday/positional...see where you fits in...And then ask questions on that methods, but first learned it...Everyone here is cooperative, but keep the fine line of decency and respect, nobody is 'answerable' to you...
In this post i am not downgrading other methods like elliott wave, market profile...but only realized it doesnt met my mental character the process it requires...but in the way carried some good things from these methods too...Like in EW, i learned the time correction, running correction importance...In market profile, i learned its value which decides further advanced/fall... How newer auction is behaving...
And when i said, markets are here forever..i mean, dont try to hastily enter/exit trades without proper plan...Many thinks bull market is over, i need to initiate positions now only. Its not like that, unless you have green signal from your study , wait ...dont jump in...Else you will be counterparty to the profit trader...
So have a method of your choice and learned it to the core...
