learning of a discretionary trader

[oilman5]

Re: learning of a discreationary trader

this is my 500post......so must something useful.
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amateur vs pro.......we start normally as foolest of them......with an aim to journey to be the best of them......so various level we cross.......with realisation is our motto.
here....to become prudent ....we must minimise ....cost of learning.....learning by self mistake
the lucky one learns from reading books...and trading others money[fund manager].....so fine tuning is easier......so far they r adaptable,a nondisturbance atmosphere.......and ready to learn from mistake.it normally takes 3yr to learn ....what he or she is doing..........rationally on reasoning whether i earn by call or by tips.....how far market helps me[luck factor].......predictable mode......or a successful reactionary trader.
the concept of ta/fa/psychology........how far his market reading is accurate........game of marketing in this field.
the game of common sense........uncanny ability to sense danger.......as well as oppurtunity
.....is he aim for.
next is execution.......it is the art[learn by practice.].......slippage factor.....missing oppurtunity or to chase price....confirmation by price/trade volume.......as well as keeping oneself under control while trading......a rational entry/exit technique......and apply it on case to case basis.......or like a robot....mechanical trade.
third and last thing......@ which time frame ......he or she does better.....with proper temperament........for which one must experiment a lot with small fund.....then compare....which mode best suited him for life......fitting
........another factor......market variable.......prepare for rainy day.....development of knowledge......another continuous evolutionary process.....shall hold him for long term.
...................
so from where they start.......a college grad[mba].....a theory on business...implementation
money flow + what lures mass.
normally a strong fundaa background......supported by.....technical inquisitive mind/learners attitude......understanding of ta aspect of market produce them a good trader.
.................................
otherside of story......dealer.....rm.....bm/subbroker....analyst...broker
dealer....entry person who make entry/sit backoffice
rm/bm...have experience of dealer.....now handle them.....intimate.client....to tell oppurtunity/danger....basically to trade generation for his broker
analyst.....have seen all .....a readyencyclopedia on market....can tell what if....but rarely make money out of it....better through.commission/call selling
broker.....trade commission....+ game play....cornering stock.....maintain min risk but arbitrage.......as well as trade trade on large bulk......low risk one....with big fall pt...buy and sell at top......believe in strength of inside info.
since they r senior most.......can understand a potential candidate.....both stock and a dealer/rm........to utilise it better.
.....................................................
normal aspirant must watch them......follow them.....to take this quality....use money management......+ info game.....with responsibility......to earn when oppurtunity comes.
......otherwise be disciplined......to wait

 

[oilman5]

Re: learning of a discreationary trader

so its high time to sum up this thread
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1]mentor concept.......exploration of new idea/new understanding /action plan
2]why u need a mentor
3]stop self sabotage........implementation of stop...must
4]school concept to learn trade.....class 12 model
5]where i stand......a personal view given
1. MARKET...I VIEW IT WAR ARENA..RUTHLESS FIGHTER CAN ONLY SURVIVE.
MY SKILL...WEAPON...BROAD BASE KNOWLEDGE + ANALYSIS POWER
...MY WEAK PT..POOR EXECUTION SKILL & EMOTIONAL DOLDDRUM
SOLN..USE COMPUTER BASED SIGNAL
MERCYLESS STOP
WATCH MARKET BEFORE ENTRY.
2. CONDITION OF MARKET
.....................................
UP...DOWN ...VOLATILE...3DIFFERENT STRATEGIC PLAN ..THIS CASES...
4TH CASE IS UNPREDICTABLE...HERE I MUST NOT PARTICIPATE...WAIT AND WATCH
3. MONEYFLOW CONCEPT.......
FII AND MF...WHAT THEY R DOING...AFTERALL THEY R SMART MONEY
UNDERSTAND RISK INHERENT IN TRADING
GLOBAL VILLAGE CONCEPT..AND GLOBAL FUND PERSPECTIVE ABOUT INDIA
4. INDIA CONCEPT
........................
FINANCE MINISTRY...RBI POLICY...BUDGETARY ALLOCATION...WHERE AND WHAT GOVT...OFFICIALLY VS. ACTUALLY ENCOURAGING[NOT LIP SERVICE]
INTEREST RATE...AND ITS SIMPLE IMPLICATION..REFLECTION OF IT IN STOCK MARKET
5.QUARTERLY RESULT STUDY
..............................
GROWTH UP ..PROFITABILITY AND VISION OF MANAGEMENT
6...SECTOR CONCEPT STUDY...VERY USEFUL..
THOSE WHO KNOW METASTOCK...CAN STUDY RELATIVE SECTOR STRENGTH..TOOL TO EARN WITH EDGE...PARTICULARLY SECTOR LAGGARD R NOT TO BE TRADED FOR SHORT TERM
.....WHILE LONG TIME INVESTMENT STYLE 9MONTH...HOLDING...THEY R WORTH TO BUY.
U SEE THE SAME SECTOR BAD FOR SHORT TERM IS GOOD FOR LONG..PROVIDED FUNDAMENTAL NOT BIG CHANGE...FOR MOMENTUM PLAYER ITS STRICT NONO
ON THE CONTRARY...SHORT TERM MOMENTUM PLAYER...USE THIS REL STRENGTH COMPARING HOW BETTER STOCK IS FAIRING RELATIVE TO NIFTY
another imp. list i find interlink of stock...sector
i find..vehicle..auto ancilliary..bearing
construction..cement/steel price..profitability of builder company[i do this activity,and rarely i good correct...market humbles me]
tourism;hotel..current laggard
computer growth..internet..peripherial sale...computer business model
pharma''..medicine research..hope to click
commodity based stock....with commodity price move up..profitability also..so shall stock price...here again i am a fool, metastock..and viratechindia..good chart..rarely predictable.
.................................................. .........................
7. lists of good company...what i know...what they do...on what condition company profitability move up...its a key arsenal
company based risk...business risk of a company...those who dont know...use www.equitymaster.com
check company's and industry's business model
8.CONTRARIAN THOUGHT PROCESS...MORE A GUT FEEL...A SENSE...IT REQD LOT OF EXPERIENCE TO DEVELOP IT
9PSYCHOLOGICAL FACTOR ON MARKET
.................................................. ...
MARKET HAS TRENDINESS AND ALSO UNPREDICTABILITY ELEMENT. NEWS AFFECT MARKET[UNKNOWN EVENT]........MAJORITY TRY TO GUESS WHAT MAJORITY MAY DO. I TAKE RISK OF PREDICTION BY PUTTING MONEY BUT READY TO RETREAT IF WRONG...WHICH HAPPENS MORE...AND PUT MORE MONEY WHEN RIGHT...[AND GET A GOOD KICK NOW FROM MARKET..WITH 2000SIZE OF ONGC, DIRECTIONAL BIAS..950..BREAK OUT...A GREAT BULL TRAP...A RETIRE HURT CONDITION FOR ME...MY 6TRADING PROFIT..TAKEN BY SINGLE LOSS]
............................
I HAVE TO WORK HARD AGAIN TO RECHECK MY PREDICTIVE MODEL....CHANCE OF BEING WRONG HAS TO BE EVALUATED
........COMPANY RESULT.....20
MACRO ECONOMY 20
MONEY FLOW 20
SECTOR BUSINESS/MONOPOLY ..20
OTHER FACTOR/RANDOM/OPERATORS GAME...20
..................TOTAL 100
CHANCE OF BEING WRONG....40%...WHAT TO DO IF WRONG...IMPLEMENTATION MUST
...............NOW THE TOUGHEST PART' I..' FACTOR...EMOTIONAL DECISION.BEFORE TAKING AN ENTRY I HAVE AN OPENION...BUT PRICE MUST CONFIRM MY OPENION THEN ONLY I SHALL BUY....EVEN AFTER BUY ...WHILE HOLDING..IF ITS NOT BEHAVING AS EXPECTED...I MUST USE [TIME STOP]...BOOK LOSS AND THROW AWAY OPENION...
THIS ESSENCE OF TRADING I FIND TOUGHEST TO IMPLEMENT...WHILE CONVERTING FROM INVESTOR TO A TRADER.
......SO I DO A LITTLE MODIFICATION...REENTRY AT LOWER PRICE[AN IMP SUPPORT LEVEL AND AGAIN TEST PRICE]
SOME FINER PT
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bill checking is must...on sevaral occation yearly 2/3...i find discrepency....as i find trading stressful...i must try level based to minimise it.FAMILY, OFFICE AND MUST BE GIVEN DUE PRIORITY since i pick fundamental scanlist..hence ta is must for my buy and sell.
if psychological set up is bullish i do aggressive entry...and paid dearly many a times...
PATIENCE AND THOUGHTFULLNESS...EASIER TO SAY.....SO CONTINGENCY PLAN FOR WORST CASE SCENARIO....IS THE SURVIVAL PLAN
I Find Support Based Buy In Normal Market...and Momentum Based Pullback Buy In Bullish Market Useful Entry Technique....ma X..identifying Pattern...r My Edge
......stop Loss ...execution Still Lot To Learn
Next Is What Maxm Help I Can Get From Others....and Leverage Skill
....another Typical Thing...i See Tv To Get Result Flash/news...never For Openion...hence I Alone Responsible For My Failure'....
yes define a timeframe first...which one u like to trade...to derisk ie. set up condition...
and in which u sense risk..ur time to react..ie when u understand its time...i am right,now i am wrong.
tripple screen is a good idea to follow.
but stick only to a single timeframe...let me explain.
u think next week market shall move up?
why....what shall the rationality....the buy is coming.
so short term biasness is up.
now go to eod...shift to weekly data...very -/also monthly..negative.
so at every rise stiff resistance shall be faced.
now who shall win....bull or bear...i dont know....but creeping commitment i may start.
why because my defined bottom ...14300 is approaching
where i see top a linear top...16500 can possible .
so this r biasness...it means i shall take to good position on some predefined stock.
and then watch......at some particular price level 15700...how market shall behave...if i smell rat ,get out...coursey hints given by ss[sunil]....+ i have my exit criteria.
but if on rare occasion it easily....x 15800.........i invest ......as sky may look clearer to me.
.........[published on 11th august,post 38 0f this thread]
WILLIAM'S ACCUMULATION/DISTRIBUTION...AND MONEY FLOW...CLEARLY SHOW ON WEEKLY CHART WHAT MAY HAPPEN...
SO MY WEEKLY HOLIDAY CUT OF.....FOR A STUDENT OF MARKET.
......EXPERIMENT ON STRENGTH BY RSC TO BE SEEN....ALSO SWING PT @DYNAMIC TRADING SOFTWARE.
................
6] various trade learning reference for one's growth as trader and a hints on adjet
7]avoid trap of callgiver
8]a conceptual view on fundamental and psychology.....trade preparation
sucessful traders has 2 distinctive superiority
1]a particular time frame in which he shall play......and a definite style
2]predictive mode or reactive mode
.......
first thing......intraday......day.......short term.......intermediate......r known to everyone
also the style......break out.....pull back ...short at top.....bottom fishing....continuation with momentum.......r spl mention not reqd.......as already systemised.....many a trader play
.....with definite.....derisk model which suits him
so timeframe.....style....derisk......this 3......creates a set....now compatibility
.....the word successful.......clearly tells........its already done....nofurther experiment pl
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2] predictive mode vs. reactive.......
elliot or wave.....count....it suggests........but price confirmation must.....otherwise...its russian roulette
in reactive case.....trader develops.......a mental state.....in which he follows....the event of market ....direction and strength[trade what u see]
....all whipsaws r not to be attended........problem is nobody knows change is normally abrupt
....so some theory develops to watch one higher/one lower time frame.
..still randomness is a governing factor
......only with exceptional mental stability[example cv].....a person can be flexible like clay
....can react most of the time RIGHT
......for others.....a jone has to be created......on certain conditional fulfilment accept a trade......otherwise....REJECT THE OPPURTUNITY[considering uncertainity]
.....THIS ATTUNEMENT I CALL PSYCHOLOGY OF SUCCESSFUL TRADER
still i suggest diary writing.....take a print on entry and exit of chart....for future analysis of learning curve
.............
with this i am closing as i have nothing more to offer
this thread is dedicated to traderji,saint,cv,uasish....
......IF A SINGLE TRADE LEARNER BENEFITS OUT OF IT.....BECOME A PRO WHO EARN
CONSISTENTLY FROM MARKET BY FOLLOWING PRINCIPLE LAID DOWN HERE......I shall consider myself useful IN THIS WORLD as i am told time and again.....AMATEURS R AMATEURS.....THEY HAVE NO CHANCE]
wish u all the best
from a professional project manager