Hi
Sorry for my late post. In fact, my father was undergone a surgery. So I was busy for the time being.
Let us continue the journey again.
I joined the new company around December,1998 and my salary was 13000/-. When I joined the company, my boss told me to concentrate on both fundamental as well as technical analysis. Till that day, I did not able to differentiate between technical analysis and fundamental analysis. On fundamental part, I used Dalal Street & Capital Market magazines for analysis. On Technical part, I did not even know the basics. Although I manually drew the charts, I did not even know that it was a part of technical analysis. Generally I thought day trading in fundamentally good company will always end in profit. So I used to recommend him on basis of my raw charting technique and financial results. For me fundamental analysis meant strong book value, good dividend paying track, consistent profitability. My recommendation were just average. So after 10 days, my boss asked me to give recommendation on the basis of technical analysis only. In my office, there was a software lying near to a dealer terminal. Some clients glanced it occasionally but that software was lying there like an orphan in fact completely useless. When I inquired my boss regarding technical analysis, he took me to that software and told me from today onwards, you have to use it, so be conversant with that software in one week. The name of that software was Knight-Rider.
It was my real entry into the world of technical analysis. Although I officially owned that software, I did not even know how to use it. Again I was not so computer literate at that time. So it compounded my problem there. So I think they may fire me after one or two month. But I was not much worried because I had a personal back up of around 1,50,000/-. So I tried to know as much as possible regarding Knight-Rider. First I took the print out of the help file of that software. It was around 1000 pages. Knight-Rider was, in fact, like Reuter. It provided both fundamental as well as technical analysis. It also flashed breaking news during the market hour (Now Knight-Rider was merged with Reuters). From that print out, I was able to know something about support and resistance, Bar Chart, Candlestick Chart, Trendline and some indicators. The part which fascinating me much was Candlestick. So I concentrated entirely on candlestick charting. I used it with my old study of trend analysis. I was always looking for some candlestick reversal pattern after six to seven bars rally or a down move. My accuracy rate was so high, I gradually thought that I got my holy grail. My boss was very happy on my recommendation and he started to trade on my recommendation. He told me to concentrate more on analysis. In the mean time I found that my company was charging intraday brokerage between 0.03% - 0.05%. 0.03% rate was applicable for those clients whose intraday turnover was more than one crore. Before I was paying 0.15% as intraday brokerage. With new found success in analysis, I thought it was better to take another risk with such low brokerage. I had already spent two months in that company. In fact, I was not mentally prepared to do 9 to 5 job. So I told my father regarding my intention and almost forced him to support my view. He finally agreed to my proposal and gave 1,50,000/- to start my new career. Now I've 3,00,000/- as balance money and I required 2,000/- to 2,500/- as my monthly expenditure. I conveyed my intention to my boss, initially he was a little bit upset but finally he accepted my resignation. As a kind gesture, my boss fixed my initial brokerage rate at 0.03% and told me to negotiate in future after analysing my volume. Also I took permission from him to use Knight-Rider. In the last three years, I had gain a lot of experience. With the support of that experience and the new found knowledge, I started my career as a professional trader. It was around March, 1999.
Please wait for my next journey.
Till then
Good Bye.