'CORRECTIVE' MONDAY..?

FROM AN EXPERIENCE

 Although the cheetah is the fastest animal in the world and can 

catch any animal on the plains, it will wait until it is absolutely 

sure it can catch it’s prey. It may hide in the bush for a week, 

waiting for just the right moment. It will wait for a baby antelope,

and not just any baby antelope, but preferably also one that is sick

or lame. Only then, when there is no chance it can lose its prey,

does it attack. That, to me, is the epitome of professional trading.”

                                                                        - Mark Weinstein

 

There was a scorpion, who wanted to cross a river, 

but cannot as he could not swim.

He asked a frog to carry him across a river.

The frog was afraid of being stung, but the scorpion reassures him

that if it stung,

the frog would sink and the scorpion would drown as well.

The logic appeals to the Frog, So he then agrees;

nevertheless, in mid-river, 

the scorpion stings him, dooming them both.

When asked why, the scorpion explains, 

“I’m a scorpion; it’s my nature.”

To let profits run, need to keep Greed at bay, 

else it will Sting in each and every trade.

How does a seasoned trader control his emotions? 

He realizes that his trading performance moves in cycles.

Sometimes he is profitable and sometimes he is not. 

Gaining awareness of this fact helps control his emotions.

Try and realize that if you have a big winning period that you

shouldn’t get overly excited because, most likely, you’ll have 

a flat or losing period just around the corner. 

No style of trading makes money all the time. 

The odds are that after you have a big winning period, 

you’ll go through a period of losing money shortly thereafter.

                                                                                          (to be contd)

TODAY’S TRADING STRATEGY

OF NIFTY FUTURES – MAY 30^th

If stays below 5475 see slide upto 5445-35-26

Good ‘Intraday’ Support is seen @ 5418 today

Above 5475 for 15 min means hike upto 5490-5500-06

is for sure.

Intraday resistance @ 5506

Range bound today between 5426 and 5506

- All these levels are appropriate only in a

normal opening

What if 5426 or 5506 crossed..?

Subscribe us for more details and

exact trading decisions

THE NEED FOR INDEPENDENCE

You need to do your

own thinking.

Don’t get caught up in mass

hyste-ria.

As Ed Seykota pointed out,

by the time a story is making 

the cover of the national 

periodicals, the trend is probably

near an end. 

Independence also means

making your own trading

decisions.

Never listen to other opinions. Even if it occasionally helps

on a trade or two, listening to others invariably seems to end up

costing you money-not to mention confusing your own market 

view. As Michael Marcus stated in Market Wizards,

“You need to follow your own light. If you combine two traders, 

you will get the worst of each.”

A related personal anecdote concerns another trader I interviewed in Market Wizards. Although he could trade better than I if he were blindfolded and placed in a trunk at the bottom of a pool, he still was interested in my view of the markets. One day he called and asked, “What do you think of the yen?”
The yen was one of the few markets about which I had a strong opinion at the time. It had formed a particular chart pattern that made me very bearish.
“I think the yen is going straight down, and I’m short,” I replied.
He preceded to give me fifty-one reasons why the yen was oversold and due for a rally. After he hung up, I thought: “I’m leaving on a busi-ness trip tomorrow. My trading has not been going very well during the last few weeks. The short yen trade is one of the only positions in my account. Do I really want to fade one of the world’s best traders given these considerations?” I decided to close out the trade.
By the time I returned from my trip several days later, the yen had fallen 150 points. As luck would have it, that afternoon the same trader called. When the conversation rolled around to the yen, I couldn’t resist asking, “By the way, are you still long the yen?” 
“Oh no,” he replied, “I’m short.”
The point is not that this trader was trying to mislead me. On the contrary, he firmly believed each market opinion at the time he expressed it. However, his timing was good enough so that he probably made money on both sides of the trade. In contrast, I ended up with nothing, even though I had the original move pegged exactly right. The moral is that even advice from a much better trader can lead to detri-mental results.

 JESSE LIVERMORE's INTERVIEW (UNPUBLISHED)

What follows is a never before

 published “interview” 

with Jesse Livermore.

Conducted by Edwin Lefevre, 
dated circa 1922, this “interview”

reveals great insights into the 
mind of the famous trader. 

As we will see, the wisdom
imparted here could change
our entire 

perspective on the speculative 
game we love and enjoy. 

It might even change our lives. 
I took the liberty of editing it 
due to its length.

Lefevre:  Hello Mr Livermore.  Thank you for taking the time to 

conduct this series of interviews with me. 

It is my understanding that you do not grant many interviews, 

so I am honored.

Livermore: You are very welcome.  

I appreciate the respect but you do not have to address me 

as Mr.  Jesse, or my nickname, the boy plunger, will suffice.

Lefevre: And where did you get the name boy plunger?

Livermore: It was during the early days when I was trading small

lots in the bucket shops, where the man who traded in twenty shares 

at a clip was suspected of being J.P. Morgan traveling incognito.  

I didn’t have a following.  I kept my business to myself.  As it was,

it did not take long for the bucket shops to get sore on me for 

beating them.  I’d walk in and plank down my margin, but they’d 

look at it without making a move to grab it.  They’d say nothing 

doing. That is when they started calling me the boy plunger. 

I had to move from shop to shop, even to the point of changing

my name. 

I couldn’t put trades on without getting cheated on the quotes. 

This was in Boston, so I then moved to where the real action 

was, to New York.  I was 21 at the time.

Lefevre:  Were you making money?

Livermore: My plan of trading was sound enough and won oftener 

than it lost. If I had stuck to it I’d have been right perhaps
as often as seven out of ten times. In fact, I always made
money when I was sure I was right before I began.

What beat me was not having

brains enough to stick to my own game – that is, to play the market

only when I was satisfied that precedents favored my play.

There is a time for all things, but I didn’t know it. And that is

precisely what beats so many men in Wall Street who are very

far from being in the main sucker class.

There is the plain fool, who does the wrong

thing at all times everywhere, but there is the Wall Street fool, 

who thinks he must trade all the time. No man can always have 

adequate reasons for buying or selling stocks daily or sufficient 

knowledge to make his. play an intelligent play. The desire for 

constant action irrespective of underlying conditions is responsible

for many losses in Wall Street even among the professionals,

who feel that they must take home some money every day, 

as though they were working

for regular wages. Getting sore at the market doesn’t get you

anywhere. I was only a kid and had a lot to learn.

Lefevre:  Sounds like you were learning some valuable lessons.

Livermore: There is nothing like losing all you have in the world for 

teaching you what not to do.

And when you know what not to do in order not to lose money,

you begin to learn what to do in order to win.

Did you get that? You begin to learn!

Lefevre:  So, you have learned a few lessons about losing?

Livermore: I could write a book on losing.  It takes a man a 

long time to learn all the lessons of all his mistakes.

My losses have taught me that I must not begin to advance

until I am sure I shall not have to retreat. 

But if I cannot advance I do not move at all.

I do not mean by this that a man should not limit his losses

when he is wrong. He should. But that should not breed indecision. 

All my life I have made mistakes, but in losing money I have gained 

experience and accumulated a lot of valuable don’ts.

I have been flat broke several times, but my loss has never been

a total loss. 

Otherwise, I wouldn’t be here now. I always knew I would

have another chance and that I would not make the same

mistake a second time.

I believed in myself. A man must believe in himself and his

judgment if he expects to make a living at this game.

Lefevre:  Sounds like losing is a good way to learn about speculation.

Livermore: Speculation is a hard and trying business, and a 

speculator must be on the job all the time or he’ll soon have no 

job to be on. 

There is nothing like losing all you have in the world for

teaching you what not to do.

And when you know what not to do in order not to lose 

money, you begin to learn what to do in order to win. 

Did you get that? 

You begin to learn! 

If I learned all this so slowly it was because I learned 

by my mistakes, and some time always elapses between making a 

mistake and realizing it, and more time between realizing it and

exactly determining it.

Lefevre:  What have you learned about winning? 

Is there a particular strategy or market you prefer to trade 
where you win more than you lose?

Livermore: I NEVER hesitate to tell a man that I am bullish 

or bearish. But I do not tell people to buy or sell any

particular stock. 

But the average man doesn’t wish to be told that it is a 

bull or a bear market. What he desires is to be told specifically

which particular stock to buy or sell. 

He wants to get something for nothing. 

He does not wish to work. He doesn’t even wish to have to think. 

It is too much of a bother to have to count the money that he picks

up from the ground.  THE average ticker hound or as they used to 

call him, tape-worm goes wrong, I suspect, as much from over 

specialization as from anything else. It means a highly expensive

inelasticity. After all, the game of speculation isn’t all mathematics

or set rules, however rigid the main laws may be. Even in my tape 

reading something enters that is more than mere arithmetic.

There is what I call the behavior of a stock, actions that enable 

you to judge whether or not it is going to proceed in accordance 

with the precedents that your observation has noted. 

If a stock doesn’t act right don’t touch it; because, being unable

to tell precisely what is wrong, you cannot tell which way it

is going. No diagnosis, no prognosis. No prognosis, no profit.

Lefevre:  How is a stock or market suppose to act for you to 

recognize a pattern of behavior?

Livermore: All a trader needs to know to make money is to apprise

conditions.  The big money was not in the individual fluctuations

but in the main movements that is, not in reading the tape but in 

sizing up the entire market and its trend.

And right here let me say one thing: After spending many years

in Wall Street and after making and losing millions of dollars 

I want to tell you this: It never was my thinking that made 

the big money for me. It always was my sitting. 

Got that? My sitting tight! It is no trick at all to be right on the 

market. You always find lots of early bulls in bull markets and 

early bears in bear markets. I’ve known many men who were right

at exactly the right time, and began buying or selling stocks when 

prices were at the very level, which should show the greatest profit.

And their experience invariably matched mine –

that is, they made no real money out of it. 

Men who can both be right and sit tight are 

uncommon. I found it one of the hardest things to learn. 

But it is only after a stock operator has

firmly grasped this that he can make big money.

It is literally true that millions come easier to a trader after he knows

how to trade than hundreds did in the days of his ignorance. 

Basically I watch the price of the stock.  If it falls a few points 

but then begins to rise higher I know there is interest in its 

going higher. 

If it falls and does not recover then there is not enough interest 

for it to continue its rise.  But in starting a movement it is unwise

to take on your full line unless you are convinced that conditions

are exactly right. Remember that stocks are never too high for you

to begin buying or too low to begin selling. But after the initial 

transaction, don’t make a second unless the first shows you a profit. 

Wait and watch. That is where your tape reading

comes into enable you to decide as to the proper time for beginning. 

Much depends upon beginning at exactly the right time.

It took me years to realize the importance of this.

It also cost me some hundreds of thousands of dollars.

Lefevre:  What causes you to be bullish or bearish?

Livermore: Obviously the thing to do is to be bullish 

in a bull market and bearish in a bear market. 

Sounds silly, doesn’t it? 

But I had to grasp that principle firmly before I saw that to 

put it into practice really meant to anticipate probabilities. 

When I am long of stocks it is because my reading of 

conditions has made me bullish. 

But you find many people, reputed to be intelligent, 

who are bullish because they have stocks. 

I do not allow my possessions to do the thinking for me. 

That is why I never argue with the tape. 

To be angry at the market because it unexpectedly or even

illogically goes against you is like getting mad at your

lungs because you have pneumonia.

Lefevre:  Would you say that there is much the market

can teach the trader about making mistakes?

Livermore: The recognition of our own mistakes should 

not benefit us any more than the study of our successes. 

But there is a natural tendency in all men to avoid punishment. 

All stock market mistakes wound you in two tender spots-

your pocket book and your vanity. 

Of course, if a man is both wise and lucky, he will not make

the same mistake twice. 

But he will make anyone of the ten thousand brothers 

or cousins of the original. 

The Mistake family is so large that there 

is always one of them around when you want to see

what you can do in the fool-play line.

JIM ROGERS ON 'HARD TALK'
Pls just spend half-an-hour and listen to this instead of watching
Blue Channel Jokers & Villains,Cricket Matches
or Masala movies 

MESSAGE TODAY

Experience is the only good 'tis safer to borrow than to buy.

                                                                  -IVAN PANIN

RELAX CORNER

JUST SMS TO YOUR PAL

Aap Is Jumley Ko 5 Murtaba Repeat Nahi Kar Saktay, 

Try Your Luck. "Upper Roller Lower Roller" Its Fun. ;-)

சுவாமி 'டுபாகூரானந்தா'  

சுவாமி: 'வாழ்க்கையே ஒரு வட்டம் தான்'

பக்தர்:  எப்படி சாமி..?

சுவாமி: கடவுள் மனிதனைக் கண்டு பிடித்தான்

             மனிதன் கேமராவைக் கண்டு பிடித்தான் 

             'கேமரா' சாமிகளைக் 'கண்டு பிடித்தது'..

             ஓம் தத்சஸ்..

பக்தர்: தன்யனானேன் சாமிஜி...

                                                      (ஆன்மீக ஆய்வுகள் தொடரும்)

                  வாரா  வாரம்  ஆன்மீக  ஆரவாரம்

                   

       

Disclaimer

எண்ணங்கள்  பண்படுவதொன்றே எங்கள்

நோக்கமே அன்றி எவர் மனமும் 

புண்படுவதல்ல...

யாவரும் சிந்தித்திருப்பதுவேயல்லாமல் வேறொன்றும் 

அறியோம் பராபரமே..

                                                                      -ஆசிரியர் 

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