Tuesday, May 29, 2012

Lessons in Humility

The Market is a great teacher. As soon as a trader develops a sense of over confidence, Mr Market comes and puts the trader in his/her place.

Silver broke out of a trading range yesterday, giving a buy at 54785. I went long, then added to this position when Silver dipped to 54300. Then, in the evening, Silver broke out above its resistance at 54860. So, I added some more. I felt that the breakout in Silver is finally at hand. This is likely to be a profitable trade - which is what came to my mind.

Pleased with my trading skills, I went for my evening walk. I do not take any trades (entries or exits) after 9 PM. At 9.30 PM, I switched on the screen just to find out how much money I was making. Silver was at 54000.

As I said in the post heading, every day in the market is a lesson in humility.

6 comments:

Jitender Yadav said...

Respected Sir
Shahrukh Khan, when held at a New York airport recently, joked "Whenever I start feeling too arrogant about myself, I always take a trip to America. The immigration guys kicked the star out of stardom."
I am reasonably good in equity trading but whenever after a winning streak I need to correct my ego I start trading Crude at MCX.
The Market is a very strict teacher also.
Your Fan
Jitender Yadav
New Delhi

Bashu said...

Dear Sudarshanji,

When all the "Experts" make recommendations, you talk about the actual trades you took providing time and price details.

When all the "Experts" talk only about how they are carrying winning positions since the beginning of the time (sorry, I meant the trend), you talk about losing trades too.

This shows your humbleness and bring you closer to our hearts!

We all traders know winning all the trades is simply not possible. When you talk about losing trades, we feel you are also a normal human being and not a supertrader who exist only in fantasy land!

And it inspires me to become more successful and humble like you. Thank you for all the sharing and guidance!

Rajat said...

Well I didn't understood Mr. Jitendra's logic of Trading Crude when he feels that he has made enough in Equity, I assume that he meant that he starts trading into something of which he has no knowledge of half knowledge and losses money what he has earned from his skills in equity, I don't think that the best idea what I do is start looking into the Trades gone Bad and try to see what mistakes I made and if I am too good as my Ego is saying than those Bad Trades are also because of me. So I try to content my self by saying that I was not 100% correct and I believe that none of the traders are.

sanraj said...

Thanks for sharing Sir, It is truly a truthful moment.

Rushabh Shastri said...

Yes the same I had experienced with ASIAN PAINT....it painted me with my true color, but today I observe that it was blown out heavily....such blown out with volume as per my study makes me cotious again

assortZ said...

I got kind of joy after reading this post.I trade in commodities and goes through this humility many times. After reading such a feel from a genuine expert like you,it's certain that there is no way we get a feel of "look at me!" with Mr.Market.It's good to always keep a low profile with market to maintain a good rapport with him!

I like this post in the same way how i liked the "aha moment" post from you (way back in 2009).

Thanks!