FROM AN EXPERIENCE
“When you
really believe that trading is simply a probability game, concepts like
‘right’ and ‘wrong’ or ‘win’ and ‘lose’ no longer have the same
significance. As a result, your expectations will be in harmony with the
possibilities.” – Mark Douglas, trader & author
“Trade with an
edge, manage risk, be consistent, and keep it simple. The basis of all
successful trading can be summed up in these four core principles.” –
Curtis Faith
“If you lack a solid trading plan
and are stressed out when you trade, you’ll naturally tend to cut your
profits short and hold on to losers.” – Van K Tharp
“Wharton
taught you that 40 percent of a stock’s price movement was due to the
market, 30 percent to the sector, and only 30 percent to the stock
itself, which is something that I believe is true. I don’t know if the
percentages are exactly correct, but conceptually the idea makes sense.”
– Steve Cohen, hedge fund manager
“Traders
fail for the same reason that most baby turtles fail to reach maturity:
Many are called and few are chosen. Society works by the attraction of
the many. As they are culled out, the good ones are left, and the others
are released to go try something else until they find their calling.
The same is true for other fields of pursuit.” – Ed Seykota
“Win
or lose, everybody gets what they want out of the market. Some people
seem to like to lose, so they win by losing money.” – Ed Seykota, trader
“The
markets are the same now as they were five or ten years ago because
they keep changing-just like they did then.” – Ed Seykota
“Don’t
get in a shootout if you’ve left your guns at home. The markets are no
place to be trying to impress people. The only way to impress anybody is
to stay on your toes, be consistent, and trade within your means.” –
Marty Schwartz
“The
10 day exponential moving average (EMA) is my favourite indicator to
determine the major trend. I call this “red light, green light” because
it is imperative in trading to remain on the correct side of moving
average to give yourself the best probability of sucess. When you are
trading above the 10 day, you have the green light, the market is in
positive mode and you should be thinking buy. Conversely, trading below
the average is a red light. The market is in a negative mode and you
should be thinking sell.” – Marty Schwartz
“Charting
is a little like surfing. You don’t have to know a lot about the
physics of the tides, resonance, and fluid dynamics in order to catch a
good wave. You just have to be able to sense when it’s happening and
then have the drive to act at the right time.” – Ed Seykota
“A
lot of people get so enmeshed in the markets that they lose their
perspective. Working longer does not necessarily equate with working
smarter. In fact, sometimes is the other way around.” – Martin Schwartz,
in Pit Bull
“I
have learned through the years that after a good run of profits in the
markets, it`s very important to take a few days off as a reward. The
natural tendency is to keep pushing until the streak ends. But
experience has taught me that a rest in the middle of the streak can
often extend it.” – Martin Schwartz, in Pit Bull
“The
market does not know if you are long or short and could not care less.
You are the only one emotional involved with your position. The market
is just reacting to supply and demand and if you are cheering it one
way, there is always somebody else cheering it just has hard that it
will go the other way” – Marty Schwartz, Pit Bull
“Most
books on trading say that you only have to be right 3 or 4 times out of
10 if you cut your losses quickly and let your profits ride. That
doesn`t work for me. I cut my losses quickly, but I take my winners just
as quickly. I need to be right 7 or 8 times out of 10″ – Marty
Schwartz, Pit Bull
“A
great trader is like a great athlete . You have to have natural skills,
but you have to train yourself how to use them.” – Marty Schwartz, Pit
Bull
“Whenever
too many people are doing the same thing, the market will go through a
period of adjustment.” – Gary Bielfeldt, professional trader
“When
you are starting out, it is very important not to get too far behind
because it is very difficult to fight back. Most traders have a tendency
to take risks that are too large at the beginning” – Gary Bielfeldt
“The general rule is: The less observed, the better the trade.” – Bruce Kovner, hedge fund manager
“Michael
Marcus taught me one other thing that is absolutely critical: You have
to be willing to make mistakes regularly; there is nothing wrong with
it. Michael taught me about making your best judgment, being wrong,
making your next best judgment, being wrong, making your third best
judgment, and then doubling your money.” – Bruce Kovner, hedge fund
manager
“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.” – Jesse
Livermore, Reminiscences of a Stock Operator
“The
loss of the money didn’t bother me. Whenever I have lost money in the
stock market I have always considered that I have learned something;
that if I have lost money I have gained experience, so that the money
really went for a tuition fee. A man has to have experience and he has
to pay for it.” – Jesse Livermore, in Reminiscences of a Stock Operator
“The game taught me the game. And it didn’t spare me rod while teaching.” – Jesse Livermore
“Losing
money is the least of my troubles. A loss never troubles me after I
take it. I forget it overnight. But being wrong – not taking the loss –
that is what does the damage to the pocket book and to the soul.” –
Jesse Livermore, Reminiscences Of A Stock Operator
“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
“I
think it was a long step forward in my trading education when I
realised at last that when old Mr. Partridge kept on telling other
customers, “Well, you know this is a bull market!” he really meant to
tell them that 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.” – Jesse Livermore
“If
I were walking along a railroad track and saw an express coming at me
at 60 miles an hour, I would be a damned fool not to get off the track
and let the train go by. After it had passed, I could always get back on
the track, if I desired” – in Reminiscences Of A Stock Operator
“Obviously
the thing to do was to be bullish in a bull market and bearish in a
bear market… I came to learn that even when one is properly bearish at
the very beginning of a bear market it is not well to begin selling in
bulk until there is no danger of the engine back-firing.” – Jesse
Livermore
“Being
so critical, I am often considered a contrarian. But I am very cautious
about going against the herd; I am liable to be trampled on… Most of
the time I am a trend follower, but all the time I am aware that I am a
member of the herd and I am on the lookout for inflection points.” –
George Soros
“Volatility is greatest at turning points, diminishing as a new trend becomes established.” – George Soros
“If
a trader is right on direction, but wrong on timing, then the trader is
wrong period.” – Peter Brandt, Futures Trader, author of Diary of a
Professional Commodity Trader
“There
are just four kinds of bets. There are good bets, bad bets, bets that
you win, and bets that you lose. Winning a bad bet can be the most
dangerous outcome of all, because a success of that kind can encourage
you to take more bad bets in the future. You can also lose a good bet,
but if you keep placing good bets, over time, the law of averages will
be working for you.” – Larry Hite
“If
there`s a large move on significant news, either favorable or
unfavorable, the stock will usually continue to move in that direction” –
Richard Driehaus
“Taking
a profit is great, but the money is not as important as the success. I
think the best trader is the one who only uses the money to keep score.
He treats trading as a challenge.” – Richard Arms
“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
“Successful
trading depends on the 3M`s – Mind, Method and Money. Beginners focus
on analysis, but professionals operate in a three dimensional space.
They are aware of trading psychology their own feelings and the mass
psychology of the markets. Each trader needs to have a method for
choosing specific stocks, options or futures as well as firm rules for
pulling the trigger – deciding when to buy and sell. Money refers to how
you manage your trading capital.” – Alexander Elder
“Beginners
focus on analysis, but professionals operate in a three dimensional
space. They are aware of trading psychology their own feelings and the
mass psychology of the markets.” – Alexander Elder
“There are two times in a man’s life when he should not speculate; when he can’t afford it, and when he can…” – Mark Twain
“I was seldom able to see an opportunity until it had ceased to be one.” – Mark Twain
“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” – John D. Rockefeller
“Markets can remain irrational longer than you can remain solvent.” – John Maynard Keynes
“The
most important organ in the body as far as the stock market is
concerned is the guts, not the head. Anyone can acquire the know-how for
analyzing stocks.” – Peter Lynch
“More men have become great through practice than by nature.” – Democritus
“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.” – Brett Steenbarger,
Ph.D – in Trader Feed
“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
“Bull
markets are born on pessimism, grow on skepticism, mature on optimism,
and die on euphoria. The time of maximum pessimism is the best time to
buy, and the time of maximum optimism is the best time to sell. If you
want to have a better performance than the crowd, you must do things
differently from the crowd.” – Sir John Templeton
“Investing
is no different. It 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.” – Cullen roche, The Prag Cap
“I
discovered, from the analysis of over 25,000 people, that men who
succeed in an outstanding way, seldom do so before the age of forty, and
more often they do not strike their real pace until they are well
beyond the age of fifty.” – Napoleon Hill, Think & Grow Rich
“Your
ultimate success or failure will depend on your ability to ignore the
worries of the world long enough to allow your investments to succeed.” –
Peter Lynch
“I
know at last what distinguishes man from animals; financial worries.” –
Romain Rolland, French dramatist, novelist and art historian who was
awarded the Nobel Prize
“The only function of economic forecasting is to make astrology look respectable.” – John Kenneth Galbraith
“In
most places around the world, the currency is like a thermometer. It
may not tell you what is going on, but it tells you that something is
going on, and you know a country is falling apart when even the
government will not accept its own currency.” – Jim Rogers
“Superlative
performance is really a confluence of dozens of small skills or
activities, each one learned or stumbled upon, which have been carefully
drilled into habit and then are fitted together in a synthesized whole.
There is nothing extraordinary or superhuman in any one of those
actions; only the fact that they are done consistently and correctly,
and all together, produce excellence.” – Daniel F. Chambliss, Professor
of Sociology
“The
stock market capitalizes not the absolute level of strength in the
domestic economy, nor the mood of the median household, but rather a
private profit stream of mostly large, substantially global companies.” –
Michael Santoli
“Contrary
to popular belief, trading is a craft. Like an artisan who develops a
craft over a lifetime, it requires a discipline to be exercised daily.” –
Mike Bellafiore
“My
basic philosophy is: Expose your portfolio to the best stocks that the
market has to offer and cut your losses very quickly when you’re wrong.
That one sentence essentially describes my strategy.” – Mark Minervini
“When
a falling stock becomes a screaming buy because it cannot conceivably
drop further, try to buy it thirty percent lower.” – Al Rizzo
Students of the market: Successful traders NEVER get complacent. They are always eager to learn, constantly looking to improve their skills.
One
way to improve is through post analysis of your trades. It is important
to look at your numbers and make sure your losses are smaller than your
gains.
WHAT HAPPENED LAST WEEK..?
Subscibers booked a profit of Rs50/- & Rs70/- in 5600CE of February and 5800CE of March respectively
And asusual we went short in PrakashCons everyday taking 3-5 Rs in average and still planned to go till it hits Rs81.75/-
Pls forget all fundas, logic, economy, blue-channel shouts, Balance sheets, Speculations & BLA..BLA..BLA's you have, since market pursues always the charts and techniques
Just join hands and Enjoy Pals
Consistency: The best at anything are the best because
they are consistent. Michael Jordan isn’t considered the best
basketball player ever because he scored 30 points ONCE in a game. It’s
because he averaged 30 points per game over his ENTIRE career.
Traders
should not obsess with their day-to-day profit & loss. Rather, they
should shoot for consistent positive months, quarters, and years with
minimal draw downs. You do not want to be the “boom and bust”
trader who does well in a strong market but gives it back during market
corrections. These guys are a dime a dozen and typically get blown out
of the market at key pivot points (Last cycle, I knew a few who became
mortgage brokers — how is that for timing?)
NIFTY FUTURES LEVELS
(FEB 27)
Day’s resistance @ 5511
Day’s Support @ 5526
If trades above 5471
for 5 minutes NF would kiss 5506 and if cuts
5511 and trades above the level for 5 minutes see more
hike upto 5523-35
Suppose if cuts & trades below 5470 for 5 minutes
see a sure slide upto 5440
OVERALL VIEW THROUGH DAY CHART SAYS,
Now more chances are seen in Nifty Futures for
a slide upto 5300 this week
DAY'S THOUGHT
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