Thanks everyone for all your comments as I would like to keep this thread interactive. However let me make small detour here before I come to hardcore trading concept.
Well, there was something bothered me ever since I started losing the trades one after one, making bigger loss for covering older losses and blown accounts one after another. But there were similar new trader like me who were doing pretty well. 10 years ago, I wondered how and why that had happened and keeps on happening with every new generations of trader even today. Few of them will be ahead on the curve than others, always. We may call gifted traders.
(Now below notes will border some sci-fi hogwash, some tid-bids to Astrology, Some Vedic concept and likes. But bear with me, probably at end all will make sense, and this is only one post on this non-trading concept, rest of will be on trading)
The answer is in our DNA - the source of all the info flowing down to one from his / her family tree, which determines the habits of that person and probability of his / her reaction to an events (of panic, of greed, of anxiety). Yes, on each generation this gets changed a bit due the course of journey of life of that individual (he might be impatient person at childhood , but latter events in life taught him to be patience - an example).
As you might have noted (mentioned on my first post on Nifty thread) that I am also an astrologer (hobby), I know how to analyze a chart of a person to know his/her basic attributes. I did it for mine and found out what was my weakness - nothing new though, I already learnt that by losing lakhs of rupees in market by then
And now as per Vedic concept of Karma -> your current life you will reap the benefit of your good karma and suffer for bad karmas done over in past life. The past Karma in context here is not the only the one directly linked with you alone, but also to your ancestors (in high level) --> Same thing which is being passed to one via DNA (Let’s assume a Sci Fi concept)
Astro House No # 8 in one’s chart is house of sudden up and down and speculative gain. A favorable planetary position shows that the person will do good in speculation. And favorable planets will be there in your birth chart if your activities related to that house lord, aspecting planets, vimshottori dasha of that planet all are mapped positively in your current life - based on past life activities.
Puzzled?
Forget all this. Let’s cut the long story short now. But this background is relevant.
What I wanted to say before we jump to trading concept and systems - most of us are not traders by birth, where some are naturally gifted.
The only way to close the gap - is do enough work (real trading), taking pain (losses), changing the embedded program in your DNA controlling your boot records (core habit) - to reach a level where you are in the right setup to trigger successful trading.
You are the Trading system at that point.
You may read millions of book on trading, blogs, attend seminar - unless you walk the path you will not learn it.
That is why I hate paper trading - trust me, I never did it. Back testing is fine to see a trustworthiness of a system, but paper trading does not let your habitual drawback getting involved on the trading.
Unless you put some real money, and see the trade going against you (but your system did not invalidated the setup yet, that is the trade is on), will you be able to hold your nerve? Paper trade will make it easy, real trade no way unless you have gone through enough molding in the heat of share markets.
That is the Karma- I am talking about you need to perform.
Now one important thing.
Before you jump on to trading keep some basic checklist handy. I will not elaborate each of these, unless asked.
You may google for each of these bold words (not meant for elders, they live with these) to get the details:
1. Try to lose less money during the learning curve. Where I discourage paper trade, I will not advice anyone to trade to get ruined. You don’t have to blow account repeatedly like many of us to reach profitable level.
Please identify :
You affordable Captail at Risk in trading,
Your Risk of Ruin ,
Your Win Rate of the system you are trading with and calculate Position Size based on these 3 factors
Maintain a Trading Journal (there are many on net, search by 'Breaking out Bad', I used his template these days). Go for free one. And maintain it honestly and review over weekend (if not daily ) to find the area of weakness (like your emotion going against you, you are not following your system etc)
And most importantly
Plan how to refill account in case it’s get blown out. Cause there will be dozens of time that you will fail, but you need to move on. If you give up midway, market will be happy to bid you good bye, like many traders who did not know how close they were before they gave up (I was in the brink 2 years ago). This last point will give you an idea (your refilling capability) on first point (Capital at Risk).
You may start with 10 lakhs, and your blow that in 2 months, if you can not refill – that was not okay. Start with 25k or 50k instead, if get blown out, refill. This is absolutely important.
Don’t try to hit jackpot with one big swing – never.
Well, a long post.
For a closing note, to be successful trader I will suggest one thing “Fail fast, Fail Often" at the beginning and map your habits (the hidden program in your core) which are required to be challenged and eventually changed.
More to follow..
Good Night Guys.
Finding the Devil inside - the Habits
Well, there was something bothered me ever since I started losing the trades one after one, making bigger loss for covering older losses and blown accounts one after another. But there were similar new trader like me who were doing pretty well. 10 years ago, I wondered how and why that had happened and keeps on happening with every new generations of trader even today. Few of them will be ahead on the curve than others, always. We may call gifted traders.
(Now below notes will border some sci-fi hogwash, some tid-bids to Astrology, Some Vedic concept and likes. But bear with me, probably at end all will make sense, and this is only one post on this non-trading concept, rest of will be on trading)
The answer is in our DNA - the source of all the info flowing down to one from his / her family tree, which determines the habits of that person and probability of his / her reaction to an events (of panic, of greed, of anxiety). Yes, on each generation this gets changed a bit due the course of journey of life of that individual (he might be impatient person at childhood , but latter events in life taught him to be patience - an example).
As you might have noted (mentioned on my first post on Nifty thread) that I am also an astrologer (hobby), I know how to analyze a chart of a person to know his/her basic attributes. I did it for mine and found out what was my weakness - nothing new though, I already learnt that by losing lakhs of rupees in market by then
And now as per Vedic concept of Karma -> your current life you will reap the benefit of your good karma and suffer for bad karmas done over in past life. The past Karma in context here is not the only the one directly linked with you alone, but also to your ancestors (in high level) --> Same thing which is being passed to one via DNA (Let’s assume a Sci Fi concept)
Astro House No # 8 in one’s chart is house of sudden up and down and speculative gain. A favorable planetary position shows that the person will do good in speculation. And favorable planets will be there in your birth chart if your activities related to that house lord, aspecting planets, vimshottori dasha of that planet all are mapped positively in your current life - based on past life activities.
Puzzled?
Forget all this. Let’s cut the long story short now. But this background is relevant.
What I wanted to say before we jump to trading concept and systems - most of us are not traders by birth, where some are naturally gifted.
The only way to close the gap - is do enough work (real trading), taking pain (losses), changing the embedded program in your DNA controlling your boot records (core habit) - to reach a level where you are in the right setup to trigger successful trading.
You are the Trading system at that point.
You may read millions of book on trading, blogs, attend seminar - unless you walk the path you will not learn it.
That is why I hate paper trading - trust me, I never did it. Back testing is fine to see a trustworthiness of a system, but paper trading does not let your habitual drawback getting involved on the trading.
Unless you put some real money, and see the trade going against you (but your system did not invalidated the setup yet, that is the trade is on), will you be able to hold your nerve? Paper trade will make it easy, real trade no way unless you have gone through enough molding in the heat of share markets.
That is the Karma- I am talking about you need to perform.
Now one important thing.
Before you jump on to trading keep some basic checklist handy. I will not elaborate each of these, unless asked.
You may google for each of these bold words (not meant for elders, they live with these) to get the details:
1. Try to lose less money during the learning curve. Where I discourage paper trade, I will not advice anyone to trade to get ruined. You don’t have to blow account repeatedly like many of us to reach profitable level.
Please identify :
You affordable Captail at Risk in trading,
Your Risk of Ruin ,
Your Win Rate of the system you are trading with and calculate Position Size based on these 3 factors
Maintain a Trading Journal (there are many on net, search by 'Breaking out Bad', I used his template these days). Go for free one. And maintain it honestly and review over weekend (if not daily ) to find the area of weakness (like your emotion going against you, you are not following your system etc)
And most importantly
Plan how to refill account in case it’s get blown out. Cause there will be dozens of time that you will fail, but you need to move on. If you give up midway, market will be happy to bid you good bye, like many traders who did not know how close they were before they gave up (I was in the brink 2 years ago). This last point will give you an idea (your refilling capability) on first point (Capital at Risk).
You may start with 10 lakhs, and your blow that in 2 months, if you can not refill – that was not okay. Start with 25k or 50k instead, if get blown out, refill. This is absolutely important.
Don’t try to hit jackpot with one big swing – never.
Well, a long post.
For a closing note, to be successful trader I will suggest one thing “Fail fast, Fail Often" at the beginning and map your habits (the hidden program in your core) which are required to be challenged and eventually changed.
More to follow..
Good Night Guys.
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