TREMBLING TUESDAY?

FROM AN EXPERIENCE

The overwhelming reason that traders win or lose is not because of their entry method, but because of their money management skills.
By “money management” it simply mean keeping losses and drawdowns to an absolute minimum while making the most of opportunities for profit.Good Trader must keep his losses to a minimum to ensure his survival. If you keep your losses to a minimum on every trade, you will have 80 percent of the battle won.
Important‑if the market starts to move parabolically or has a rangeexpansion move, take profits on the entire position. This is very likely climax!
‘When the ducks quack, feed them.” In other words, when everybody wants something, that’s probably the perfect spot to sell it to them. The price has already been bid way up. Emotions drive the markets to extremes, and these extremes are the ideal spot to exit our trades.
“If a betting game among a certain number of participants is played long enough, eventually one player will have all the money. If there is any skill involved, it will accelerate the process of concentrating all the stakes in a few hands. Something like this happens in the market. There is a persistent overall tendency for equity to flow from the many to the few. In the long run, the majority loses. The implication for the trader is that to win you have to act like the minority. If you bring normal human habits and tendencies to trading, you’ll gravitate toward the majority and inevitably lose.”
One of the hardest lessons to learn in your quest to become a true trader is to suspend your beliefs and to trade that which you have learned through hours of observation.

How many times have you stated that company x is overvalued only to watch it go higher? Or undervalued only to watch it continue lower? How many times have you thought that the “market” can’t go any higher and yet it did day after day? Or lower? How many times have you been scratching your head because the “market” is rising on such low volume? When is the last time you were in disbelief because company y has closed higher for 10 days in a row (after shorting it on the third day)? And have you ever acted on a recommendation from Blue Channels/Pink Papers/Website Analysts to watch in disbelief because as soon as you entered it reversed course?

Bottom line – trading what “you” believe is a recipe for disaster.

Eventually most folks figure out that the market is so chaotic that they are lost and admit they don’t know how to trade. Many quit in disgust. A few of you press on and begin a journey of real study.

Along the way you start to recognize when stocks are about to “break out” or “break down”. You learn how to spot when an industry or a group of stocks are “on the move”. You learn to when it is “safe” or
“risky” to be in the market. You learn to enter a trade when the time is “right” and accept the fact that you have “no” clue as to what will happen next but are willing to “accept” what ever the outcome is and more importantly you “know” prior to the trade at what points you will exit (“initial stop”, “profit target”, “trailing stop”). You also learn that you are not your last trade whether it was a winner or a loser, you quietly move on and get prepared for your next trade.

This is what I mean by “Trade what you Observe”! You have spent time observing the market and have found ways to profit from it’s movements and you have no use for those old beliefs.

(to be contd)

TODAY’S DAY TRADING

STRATEGY OF NIFTY FUTURES – OCT 12

Overall resistance @ 6212

Day Resistance @ 6182

If trades above 6159 for 15 minutes

we can see a hike upto 6172-82

If crossed 6182 with good volumes

more climbing upto 6212

A cut below 6140 pulls the value to 6122

Good Support @ 6122

Break below this slides NF to 6087-55

And then upto 6036-24

BANK NIFTY

Buy btwn 12575-94

T1 – 12623-39

T2 – 12648-54-72

Sell btwn 12514-496

T1 – 12467-51

T2 – 12442-37-18

Nifty, Bank Nifty levels and intraday news updated here gives astonishing success rate (more than 95%) that is more than enough for the readers to attain a decent profit daily.

To mint much more money pls subscribe our service and

enjoy daily market with our guidance.

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SHARE TIPS TODAY

1) Sell HDFCBank @ 2386

T1 – 2376, 70

A REVIEW- 'NO ONE WOULD LISTEN'

This is a book about Harry Markopolos, who is the author of this book. He talks about how he attempted for years to expose the fraud that was Bernie Madoff.

The book takes the following form (from my view of how the author sees it):

• How he came to a quick conclusion that Bernie Madoff was a fraud.
• How he tried to convince others of that view, especially those that were feeding more money to Madoff.
• Two journalists took his side and wrote about Madoff in 2001 or so, but to no avail.
• Trying to come up with a similar strategy that would work, though it would return much less than Madoff’s supposed returns, and finding few would invest in it.
• Fruitless wranglings with the clueless SEC.
• Finally, in 2009, Madoff blows up.
• Vindicated, he talks to the media, Congress, and anyone who will listen.
• He excoriates the toothless SEC, and proposes better ways to root out financial fraud.

That’s the book in a nutshell. But stylistically, the book harps on how no one would listen. Well, duh. No one did listen, or the book would have been over sooner.

People are not Vulcans. They aren’t logical. Most don’t think; instead, they mimic. “If it works for him, it will work for me also.”

That was the case with Madoff. He maneuvered many sheep into position to be fleeced, and worse, they begged for the privilege to be his clients.

There were many red flags flying:

• No independent custodian
• No independent Trustee
• Small Auditor, incapable of auditing such an enterprise.
• Returns were too smooth for being so high.
• The asset size was to large for the markets supposedly employed.
• Even front-running profits would not be enough, were Madoff to do that.
• No profit motive. Other managers with lesser track records charged more.
• Marketing was by invitation.
• Investors were sworn to secrecy.
• And more, read the book.

Markopolos saw all of this, and ten years before it all blew. All that said, I came away less than fully impressed with Harry Markopolos. When I counsel people in trouble, I often tell them, “Don’t let the one who troubles you define your life. You should be living for more than to see the one who troubles you punished.” Markopolos triumphed here; good for him. But many people in similar situations become fixated on seeing the enemy punished, and ruin their lives, focusing on punishing another, rather than doing good themselves. There is a proper humility that should come to many of us when we can’t prove something beyond a shadow of a doubt, where we must give up.

My view is that Markopolos should have given up earlier, even though he succeeded in the end. I have known too many people who have destroyed their lives on similar quests. Good for Harry that he succeeded, but it was more likely that he would have ended up destroying his life.

And do I need more proof than that he had a plan to kill Madoff if Madoff threatened to kill him? Throughout the book, there is no indication that Madoff would try to kill his enemies.

This was a book that needed a strong editor. Much as I liked it because I appreciated the tale of the rise and fall of Madoff, someone needed to grab control of the narrative, and make it less personal for Mr. Markopolos.

Then again, if that had happened, the book would have been better written, but less colorful. Hearing the off-color remarks of Mr. Markopolos is entertaining, if off-key.

With all that I have said here, I strongly recommend the book. The best part of the book, though the least graphic, is the last chapter, where he recommends solutions, all of which I think make eminent sense.

Who would benefit from this book

Most average investors could benefit from the book. What it would point out to them is that if something seems to good to be true, it usually is, and that they should do their own due diligence.

(Please refer to ‘OUR POLICIES’ before you leave the site)

For further details,

Contact Admin (Analyst) @

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MESSAGE TODAY

The less depth a belief system has, the greater the fervency with which its adherents embrace it. The most vociferous, the most fanatical are those whose cobbled faith is founded on the shakiest grounds.

-DEAN KOONTZ, Forever Odd

RELAX CORNER

JUST SMS TO YOUR PAL

Q: Should I cut down on meat and eat more fruits and vegetables?
A: You must grasp logistical efficiency. What does cow eat? Hay and corn. And what are these? Vegetables. So steak is nothing more than efficient mechanism of livering vegetables to your system. Need grain? Eat chicken. Beef also good source of field grass (green leafy vegetable). And pork chop can give you 100% of recommended daily allowance of vegetable product.

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