M6 - Man, Mind, Money, Markets, Method & Madness

[Somatung]

If you have not blown your account then you are not a trader

See if you are a privileged person and have someone who guided you from the start then probably you will be fine as far as account blowing is concerned.

The average trader here in traderji is not a lucky one, otherwise he wouldn't have to come on here to talk or learn, if you trade future and options then blown up your account is a must must thing to experience as unless and until you have not done it you have not experienced the full market cycle market keep kicking out the thousands of traders every year and most of them never return. Blowing up your account and still be here in the markets is the sign of understanding the market cycle and making a point that you will learn how not to blow your account for sure.

Btw after blowing up my account 3 times in different percentages, now when I look back I am fine with it, I had no mentor to tell me what to do exactly and how, I think of it as an achievement

What do you do and since when that you haven't blown your account?

Dear Toocool

According to your comment: Do I now have to blow up an account to be on your level which you call a good trader? Do I now have to blow up an account just to say: Well, finally I did it and now others can see what a good trader I am? :lol: Or is it maybe better and far more clever to recover an account which once had a record of over -50%?

If you think all traders must have blown up there accounts in the past because you and others did it, fine. So it will be in yours and in the others mind. Let us know when you blow up your next account. This then surely will give you even more respect from the members here as you can say: I did it now the fourth time, so I am even a great trader because of this. Your money, your live. By the way: Nothing personal. Now I wish you a nice and specially a relaxed weekend.

Somatung

 

[Vertigo_1985]

Good question Vertigo. Guess for each trader it's different. I start with the following :

Tea/Newspaper : Economic Times, Timesbof India. Just quick scan. Read few articles of interest. Bathe. Get fresh. Get online, Scan CNN, Bloomberg, Investing dot com Check what's happening in imp. Commodities I.e Gold, silver, crude, copper, NG and Nickle. Check a few charts. Quick scan TJ. Log in to Sharekhan and check 20Day30Minute and Intraday 5Minute charts of the above mentioned commodities, Nifty, BankNifty. See the important turning points (high and low made) See the candlestick patterns made before the market turning point. Save these charts for reference - (about 20) Make a note of important event for day. Then ready to trade. 15 minutes before open, switch on business news. May trade at open with a strict SL of 10 points/lot. Usually wait for 10 minutes after open to trading. Check charts of stocks breaking out/breaking down. May trade trade them.

9:55 check intl. charts of commodities. 10 AM watch MCX charts. May trade within first 10 minutes, but usually after. Track Nifty/bankNifty/commodities on 3and then 5 minute TF. usually wait for range break. Morning actually, trading is light, or may not even happen. Around 12:30 track index, commodities. Wil trade basis some signals. After 1:30 PM now have an interest in trading some stock with a strong with a trend... that which makes good patterns HHHL and confirming trend on 30M TF. Enter, on dip, place SL, exit before EOD. Take position in commodity, place SL. Close terminal. Take a small nap. Have tea, go for a walk. Get back. Have bath, and be fresh. Check if open positions. Check intl. charts and news for commodities. Browse, update post on TJ. Have early dinner. Trade - usually till 10 or if interesting till 1130. Collate and save executed trade data. data. Review PL. review good and bad trades. Check good trades missed. Reasons for the same. Make notes in dairy. Reflect on what was learnt. Update learnings for something new. Switch off the terminal. In between all this there is TJ, mail.... Having multiple windows open. Most imp. Is to see the good trades that were missed. Like yesterday Copper crashed 6k/lot however I was tracking and trading Silver, NG, Crude, and missed the move on copper which I also trade. Yesterday was NFP data. Besides Silver, Gold, I am linking big move in Copper to NFP data. So ready for copper on next NFP data. That is the learning.... weekend relax. Check dairy. Check PL, reflect on imp. Learnings during the week. Relax, and be ready to trade next weel....

overall my timetable also is quite similar..
in morning wake up, bath, open terminal and first check world markets, news few blogs and traderji to see what people are thinking, then prepare a plan about what type of day we might have.
I have fixed setups so i keep watch on around 50 scrips. First trade is usually after 10, then trade as setups come. Writing down before trade the reason and plan to manage helps me in remaining focused. After trade usually there is enough time to review it so that should be done but didnt do it well this week So it's on my to improve list for coming one.
When i feel i am not in sync with markets i stop trading like yesterday after morning session i stopped as it was very confusing morning for me yesterday.
Lunch around 230-3 hr, then some nap and in evening go out.

I do meditation in evening but lately have found it very difficult to focus.
I take printouts of few charts (usually 3) and then review them, paper charts give a different perspective and i see more things in them.
At night i only few minutes of prep for tomorrow rest is timepass, should utilize it better.

 

[Somatung]

One red paperclip - Innovative trading

:lol: Love the story and even love the idea behind it. Great and fun.

Question: How did he find the people he traded with?

 

[DSM]

It was on the blog... Social media is a good and inexpensive way to get publicity for anything....

:lol: Love the story and even love the idea behind it. Great and fun.

Question: How did he find the people he traded with?

 

[DSM]

Great Traders - Martin S. Schwartz

http://www.forextraders.com/forex-analysis/famous-traders/martin-schwartz.html

Martin S. Schwartz, known in the stock trade as Buzzy, is a formidable day trader who serves as example to virtually all aspiring stock traders. His first year as an independent stock trader netted him $600,000; he doubled this figure in the following year. Schwartz is quoted as revealing that he used to make about $70,000 per day trading, and on one day he actually netted several million dollars. As his frenetic trading consumed his life, a health related wakeup call forced him to slow down, and he has lived in a self imposed semi retirement and only participates in scaled backed trading from his Florida home.

Martin Schwartz began his career with an education from Amherst College and later on Columbia University. After a stint in the United States Marine Corps, he went to work as a financial analyst for E.F. Hutton. Once he saved up $100,000, he quit and used the money to buy himself into the American Stock Exchange as an active but independent trader. Schwartz became a formidable trader who worked with options, futures as well as stocks. After 12 months of trading independently, he reported earnings of $600,000; a year later, it was twice that. Fellow traders soon began to notice the frenzied pace with which he changed positions and that he never held on long to any financial instrument. This earned him the moniker of "day trader."

Not shy about his fiscal prowess, Martin Schwartz participated in the U.S. Trading Championship that was organized by Stanford University and which consisted of nine matches. Held in 1984 - at the onset of the day trading craze - he made a spectacular showing and beat out the other participants by earning more money than his competitors did together. This led to the adoption of the day trading model not only by a good many independent traders, but also by do it yourself dabblers at home.

It is noteworthy that in a 1998 interview Schwartz alluded to the fact that the market --which was at an all-time high - was likely to have reached a cusp and thus was due for a market correction. Before long this highly successful businessman found himself addicted to the heady thrill of buying and selling at lighting speed, and nearly sacrificed his health and life in the process. Martin Schwartz detailed his accomplishments and also his failures in the book entitled "Pit Bull: Lessons from Wall Street's Champion Day Trader." At this point he lives in self imposed semi retirement and trades in a limited capacity from his Florida home.

Youtube video :

http://www.youtube.com/watch?v=CkDZbGVR7Y8

 

[DSM]

Quotes from some great traders.....


Volatility is greatest at turning points, diminishing as a new trend becomes established. - George Soros

One characteristic I've found among successful traders is that they function effectively when they're not trading. When markets become very quiet and range bound, they occupy themselves with a variety of activities, from sharing ideas with peers to conducting research. Traders who do not tolerate inactivity well inevitably feel the need to trade, often when there is no objective edge present. For them, losing money is less onerous than experiencing boredom.

To be a super-trader, you'll need an edge to overcome the laws of probability and the uncertainty of the marketplace. That edge comes from information flow, the ability to correct your habits in terms of the market's characteristics, and being able to take risks, cut losses, expand your information network, ferret out ideas, and take recommendations. - Trading to Win, Ari Kiev

If somebody had told me my method would not work I nevertheless would have tried it out to make sure for myself, for when I am wrong only one thing convinces me of it, and that is, to lose money. And I am only right when I make money. That is speculating. - Jesse Livermore

By risking 1%, I am indifferent to any individual trade. Keeping your risk small and constant is absolutely critical. - Larry Hite.

It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you‘re wrong. -George Soros

Investing is a game of repetition where hundreds of small actions result in one larger result. But most importantly, it is a game of risk management. It is not the home run hitter who wins in the long-run. Rather, it is that strategist who devises the best long-term plan who ultimately wins. While hitting home runs is sexy it is rarely a recipe for success in the investment world. Aim high, but play small. Over time, good risk management and patience wins. Power is no substitute for precision and patience. The same is true in the world of investing.

The markets are unforgiving, and emotional trading always results in losses. - Alexander Elder

To be a good trader, you need to trade with your eyes open, recognize real trends and turns, and not waste time or energy on regrets and wishful thinking. - Alexander Elder

 

[Somatung]

How to stop HFT as it is not needed?

Here some ideas which should work:

- Tax on any done transaction.
- 0.01% tax on the whole volume traded.
- To even slow it down: 0.1 to 1.0 % tax
- Expand cycle times to one minute
- Order books must be seen on line and over the web in real time, accessible to any body

This surely would even stop GS and other firms cheating other market participants by tricking them through technical tricks. It would stop them to use other market participants just as pure cash cows. It is also called: Corruption from the Elite over the smaller and retail traders.

 

[DSM]

An interesting insight into money, markets and technical and funadmental analysis. Excerpt from an interview.

http://www.investing.com/news/economy-news/did-yellen-interrupt-a-stock-market-correction -275940

Whenever the Federal Reserve speaks, the markets appear to react, but if you were to take on any given day the identical comments from the Fed and, depending upon the bias, the underlying bias of the market on that day, the perception would be either a positive or a negative for exactly the same comments.

The Fed is constantly trying to be ambiguous and understated. They don’t want to move the markets, but everybody wants a reason why the market did this or why the market did that. So the Fed often gets pegged as the reason why things are moving.

Now the technical patterns on the indexes show yes, indeed, the correction stopped at a technical- support level, not a fundamental-support level. So technical traders were heavy on the sell side which is common when it was selling down and as that technical support hit, they started moving and Yellen happened to be there at that time to give cause as to why it was rising.

 

[toocool]

Dear Toocool

According to your comment: Do I now have to blow up an account to be on your level which you call a good trader? Do I now have to blow up an account just to say: Well, finally I did it and now others can see what a good trader I am? :lol: Or is it maybe better and far more clever to recover an account which once had a record of over -50%?

If you think all traders must have blown up there accounts in the past because you and others did it, fine. So it will be in yours and in the others mind. Let us know when you blow up your next account. This then surely will give you even more respect from the members here as you can say: I did it now the fourth time, so I am even a great trader because of this. Your money, your live. By the way: Nothing personal. Now I wish you a nice and specially a relaxed weekend.

Somatung

Somatung

I think you didnt get into the soul of my posts, I think if you read again all posts related to the subject and if you see the following posts of traders who told their story, in very short or in 1 line, you will probably see what I said and why

Happy weekend

 

[amitrandive]