Hi,
Well I am knew to this forum and really find the threads on this site extremely useful. My affair with the Indian Market started late 2007. I had some money, put it in a mutual fund and saw a return of 40 % in 2 months!!! So i thought to myself i should get in, in a big way, and that was the beginning of my end... So i started doing alot of research based solely on fundamentals (i am a business major so i understand a balance sheet pretty well) and invested all my savings in stocks. And in Jan 2008 (not even 3months into my investing) the market tanks!!! So i think this is a good thing like what happened in 2006 and i invested more...It tanked again!! i kept on investing....Then i just stayed out of the market for all of 2008...
Then one fine day my broker calls me around nov. 2008 and says I should do some futures trading using my existing folio as margin...I said no I dont want anything to do with futures and intraday, i have heard enuff horror stories regarding the two...But he was persuasive and started giving me some sample recommendations after one week he showed that if i would have followed his recommendations i would have made a nice profit...So the next week i let him loose and he started trading for me with my consent on every intra-day entry and exit...Low and behold i made a nice little profit by the end of the week...I was impressed but i did not like the idea of just executing someone else's recommendations like some zombie, and i realized he must be using some sophisticated form of Technical Analysis. So I thought why not do what he is doing but using my own analysis. And in two months i made a HUGE HUGE HUGE Profit (using simple moving average divergence)...This is where i got screwed. i made such a huge profit that i upped my stakes from 100-500 lots of nifty at any given time to straight 1000-1500 lots...Guess what i lost everything and a whole lot more!!!! My worst mistake was that even though i placed stop losses, when the price would near it i took it out.
The market was trading sideways for a while, and i thought what's the use of the stop loss when the price will comeback if not today then by tomorrow and if not by tomorrow then by next week...But as fate would have it the market made its biggest rally in history!!! I got *&#@ed big time.
I have decided to really sharpen my TA skills which is what led me to this site. I hope with the knowledge on this site i can become a more disciplined and profitable trader...
Thanks to whoever had the patience to read my post
Raj
Well I am knew to this forum and really find the threads on this site extremely useful. My affair with the Indian Market started late 2007. I had some money, put it in a mutual fund and saw a return of 40 % in 2 months!!! So i thought to myself i should get in, in a big way, and that was the beginning of my end... So i started doing alot of research based solely on fundamentals (i am a business major so i understand a balance sheet pretty well) and invested all my savings in stocks. And in Jan 2008 (not even 3months into my investing) the market tanks!!! So i think this is a good thing like what happened in 2006 and i invested more...It tanked again!! i kept on investing....Then i just stayed out of the market for all of 2008...
Then one fine day my broker calls me around nov. 2008 and says I should do some futures trading using my existing folio as margin...I said no I dont want anything to do with futures and intraday, i have heard enuff horror stories regarding the two...But he was persuasive and started giving me some sample recommendations after one week he showed that if i would have followed his recommendations i would have made a nice profit...So the next week i let him loose and he started trading for me with my consent on every intra-day entry and exit...Low and behold i made a nice little profit by the end of the week...I was impressed but i did not like the idea of just executing someone else's recommendations like some zombie, and i realized he must be using some sophisticated form of Technical Analysis. So I thought why not do what he is doing but using my own analysis. And in two months i made a HUGE HUGE HUGE Profit (using simple moving average divergence)...This is where i got screwed. i made such a huge profit that i upped my stakes from 100-500 lots of nifty at any given time to straight 1000-1500 lots...Guess what i lost everything and a whole lot more!!!! My worst mistake was that even though i placed stop losses, when the price would near it i took it out.
The market was trading sideways for a while, and i thought what's the use of the stop loss when the price will comeback if not today then by tomorrow and if not by tomorrow then by next week...But as fate would have it the market made its biggest rally in history!!! I got *&#@ed big time.
I have decided to really sharpen my TA skills which is what led me to this site. I hope with the knowledge on this site i can become a more disciplined and profitable trader...
Thanks to whoever had the patience to read my post
Raj
