Good Evening to everyone (I hope there be someone to read this!),
3-4 years ago, i accidently had met a foreigner L. Morgeston a very old man from US ... He wa
s stock grandmaster I can say ... he had amassed @ $25,000,000/- in stock market! ... I had not much interest in stock market then but he was very ambitious about me
...he was so impressed by me, I don't know why? ... He always tried to teach me something whenever he had an opportunity ... He wanted me to trade with his money in american stock market, loss was his responsibilty and profit would be shared half-half
... I had warned he might lose all ...but he was SURE ... I never thought i would enter in stock in my whole life ... And strangely I am IN today and sadly he has left me forewhere ...
... So today I would like to put down a few points he told whenever he had a chance to teach me something ...Following are the reminiscent lessons pointwise...You can take it as suggestions of a life time REAL successful trader+investor ... Use them if you agree with them ...else just forget it...
1. Bite less Chew more and Eat until you are satisfied!: - This is little personal My eating habits were/are just like a monster!!...He always told me, priyu bite less, chew more and eat as much as you want ...
2. 6 Months of survival capacity :- He had a view about how much one should invest in stocks ... He told me,"
Priyu, I have kept aside an amount which will make me easily survive without any work for six months!, Rest amount is for stocks"...
3. No need to know each n everything @ Stock, Charts tell me everything :- He was probably a Technical trader he would show me candle stick charts on his computer and many times used to show something in the bottom ...some line crossing some line and in the chart too some strange line moving woth stock price ... I listened just for the sake of listening ... He told he don't know much about newly formed companies but still he can assess them from charts ....
4. Selling out 100% in one shot : - He had a strategy that whenever he wanted to sell some stocks , he used to sell all of them in one shot!!!
5. You must learn to be in the moment : - The ultimate secret of success in stock or life he used tell above sentence many times ... i almost got bored with that statement ... "Be in the moment" ... What was that??? ...
6. Like it or not, & although its illegal market is manipulated : - He has a strong conviction that the owners of oil well in gulf countries control the market. They hire intelligent peoples and collectively they decide what should be the direction of the stock market and when to make it rise and when to fall!!! ... For example he told they decide if this index comes to say 4235 points while rising , all of they will sell out everything heavily and would crash the market by creating fear in little fishes ...
7. Everyone intelligent is paid for what he is telling : - There was (probably is) a show on US television and a man reviews stocks and makes huge acrobats for convincing to buy a given stock to viewers ... he can do anything for that ... ring a bell or blow a horn ... and attract attention ... Mr. L. Morgeston would tell me for SURE he is
paid for he is telling emotional peoples!!! ... just to lure them he is paid!! ... Many financial reporters are also
heavily paid for what they report ... He was so SURE about this ... i got really scared to argue with him on this point ... So in all he said don't believe any opinion ...don't believe any report too much because
everyone is paid!...believe in companies figures & charts you see daily... and use your own head
8. Use psychological effects on peoples minds : - An example for this he told that when there was an attack on world Trade Center major stock holders of the Airline Company sold all the stock they possed in a fear that this company will be sued for this attack and all bad things possible thereafter ...At that time MR. L. Morgeston said he knew it was an terrorist attack and this is not Airline companies responsibilty so they won't be sued for sure ... So when the stocks reached rock bottom he put his all money in those stocks and when the things become clear that Companies won't be sued by the government then their prices rocketed again and he made some 30% net profit in a very very short period of time!!!
9. Be totally IN when you are IN the market : - During night when US market opens and when he had bought some shares then nothing in the world was important than his PC monitor ... he never moved from there ... I thought this is too much! ... but just a week ago I got the "reason" for his behaviour ... I had taken HDFC put a stop loss ... to my pleasure price went up ... I assumed now it has got uptrend so let it rise up till then I will have my luch ... but huh!!... till I made my lunch it had fallen and hit my stoploss ... So if i had put a traling stoploss i would have earned 1-2 % profit but due to my carelessness or take it easy attitude I made a 1% loss ... It was such a lesson ... you can check back my diary here and you will know ...
10. Upside and downside principle : - He used to say this very often ... "Priyu, Always make decisions on your own ... the more you make conciously the wiser you are ... And remember "Not making a decision about something is also making a decision!!!"...Many times you stuck up to take "a decision" about something... so use my simple principle ... See uphill side of that decision and downhill side of that decision and then compare it with uphill side of not making a decision and down hill side of not making a decision ... So which one you "preffer" ... decide on this and stick to it and take your decision conciously so that you will move forward" ... he would say " Not only in stocks but you can use this principle in all things of life" ...
So this much I remember right now ... I really miss him ...
Thanks and regards,
priyanvada
PS: - He had one day got an email from his mentor in US ... and he was in deep thought after that ... he showed that to me ... but since my english is 5th grade or less I didn't get a clue ... he said that he can understand that I don't understand ...he said this was very native language so very few in india would understand ... What I understood as that something very ill has happened to the US market that time , and when that surfaces in front of everybody then maket is going crash worst in the history ... And really it did about 9 months or a year later ...
