Tuesday, June 12, 2012

I am back

After a four day absence, I am back on this blog.

I have been visible on CNBC, as well as trading, but I did not put up a new post on these four days. Then today,Rajesh Alawadhi wrote in his comments: " till date i have been the first reader of most of your posts.The most stressful trading days for me are not the ones when my positions are running in losses but the days when you dont post anything to get me back to rational thinking."

Thanks, Rajesh. I am really overwhelmed by all the affection I receive from fellow traders and readers.

The Magic

Let  us assume there is a magic formula to make money in trading. Let us also assume that I know of this magic formula. So, I share it with a few of my colleagues. They share it with a few others, who share this with some more traders. Soon enough, almost all traders are making money using this magic formula. 

Hey, wait a minute. If everyone is making money, then we must ask ourselves, where is the money coming from? Who is losing?

We can conclude that there is no magic formula. 

The Magic is inside you 

Trading remains one of the biggest challenges of life. We trade because we want to achieve something more than a nine to five job.
Trading is a profession at the highest level of human competence.

The reason we love trading is:

Not the Money

It is the human urge, desire or force to grow

Markets strike at the core of our competitive and adaptive instincts

(adapted from the book: Market Mind Games)


13 comments:

Rushabh Shastri said...

buy right seat tight theme- now rcom should catch other ADAG stocks

Jitender Yadav said...

Respected Sir,
The ultimate goal of human life is self realization. In trading we get to know our true self i.e.
do we have patients ?( whether we wait for opportune time to enter or exit),
are we disciplined ?( in following our trading rules),
are we fearful ?( when a position goes against us)
can we control our desires ? (booking profits early not accepting loss)
In trading the results are quick, sometimes instantaneous and almost always a reflection of our personalities.
Successful trading brings the best out of us and makes us realize our true potential.
So I trade for money but I also want to know myself better through trading and achieve my true potential.
Bhagwat Geeta says you need a Guru to achieve self realization and I have found my Guru in you sir.
Your student & fan
Jitender Yadav
New Delhi

Amit Trivedi said...

" No one ever won a game of Chess by betting only on each forward moves. Sometimes you have to move backward to get a better step forward."..hello sir

Amit Trivedi said...

" No one ever won a game of Chess by betting only on each forward moves. Sometimes you have to move backward to get a better step forward."..hello sir

Rajveer said...

I am back too. After a drawdown, am back again. I am an Addict to Trading. Today i was long and booked profits. Trade in the direction of the trend feel like a achievement and accomplishment. I Wish every day is sunday.

Only if we are all rational, we all will be super rich. If wishes were horses, beggars might ride.

But, we must learn to learn from our mistakes. Trading journal is of help. Calculate %age of Profit trades/Total trades. Continue trading if the value is above 50. All experience can teach you. Also the number of years you take to learn is your investment capital with no return. The cost we have incurred on our education from school to graduation is only recovered when we get a good job. Same applied to trading. I Think 10 years is almost necessarry to be a succesful traders. Any1 already achieved this feat in less than 10 years will be my second mentor after Sukhani ji.

gourv said...

Dear Sir,

In Trading how much imporatnce does having a Monthly/Yearly profit taget plays.According to you How much is reasonable/achievable for a DAY/POSITIONAL Trader.

Regards
Gourav

gourv said...

Dear Sir,

Today Nifty has formed a DOJI(5095-5145).So if Nitry closes below 5095tomorrow,should it be considered change in the uptrend.


Regards
Gourav

BOB said...

very true .. well said .. thanks for sharing

BHASKAR said...

Dear Sir,
Please post here the daily trading strategy and levels in nifty and only one stocks intra day as well as positionally to enable us to follow..it will useful to us follow.............

Rajesh Alawadhi said...

Dear Sir,i could not agree with you more on the required level of competence and mental strenght in trading. There have been traders in every street and every second house only to loose and eventually get out of the market.Only the fittest survive here and that it purely because of the qualities you have brought out.
I would like to thank you for acknowledging the affections and respect we readers have for you. I have learnt all the trading from you from day one, i started from scratch in 2007 and bought some shares worth lacks and they continue to rot in my account as on date. After trading(no day trading) for few years,i have realized that trading is the essence of stock market and buying individual shares cannot even recover your money. I have been instrumental in following your blogs and learnt all the trading from you.I hope to continue learning from you and survive the markets.

I would like to guide us by writing a little more about the concepts of proper capital management with some examples.
Thanks and Warm Regards
Rajesh

Vasant kumar said...

Hi Gourav, My view is its not the profit target which would play a role, infact it will create pressure on u to reach the target. It is always advisable to focus on your strategies and correct the loopholes....Money comes automatically...Its my view... May be Sudarshan sir could tell u better...


Sudarshan ji, keep posting something everyday so that we could enhance our skills or knowledge... We love to hear from you...
Thanks

Dinesh Rishi said...

ATA monthly meeting has a presentation on "Trading Breakouts" on Saturday, June 9, 2012. The presentation will be given by Sudarshan Sukhani,

Sir,

My bad luck

Could not attend but will attend next time whenever next presentation will be given by you.

Austin said...

Dear Sir,

I am a big fan of yours and always see your views on the CNBC 9 am show.I am long on the nifty keeping in mind Greece Elections.

If Outcomes comes in my favor, shall i book profit on Gap Up opening or wait till RBI monetary policy outcome is out.

Regards,
Austin