Monday, January 21, 2013

Ed Seykota's quotes on Trading


Dinesh said...

Dear Sir,
Wonderful quotes, I must say.
I think measurement is very important and along with that notes on what went right and what went wrong. This is true for every industry. IT industry follows 6 sigma, CMM L5 etc for measurement.
I also liked advice on money management, emotions and cutting losses.
Thanks for sharing.

sid quanto said...

sir i do some quant analysis to technical methods at my blog

i would like to know if you think this is good material.

thanks and cheers

shefali kapoor said...

looking at the market momentum these days.

it gets me really confused.. when market makes a 52 week high while the midcaps gets hammered down..

how do we judge this divergence in markets

Rajesh Alawadhi said...

Dear sir
i must appreciate your constant desire to learn in spite of earning the reputation of best TA of india.Reading and analyzing these quotes,one can instantly recollect all trades where these principles were not followed and trades actually turned into disaster.
I really want to ask you one question,what should a trader do when you see an unusual movement in a stock for prolonged periods. .Do these unusual movements happen on their own or they are caused. I really do not want to question the wisdom of the markets but feel that such knowledge would be better to form a mental picture and help in deciding the trade direction,volumes and stops.

I request you to please guide us on how to identify traps and how can we keep ourselves safe specially when trades are being carried overnight.I have many times experienced taking a short trade on a confirmed weakness and leaving it overnight that too in profit. The next day stock opens higher shows a strong trend and rises 5% in first one hour of trade. Seeing a strong closing and inherent strength of the stock,you cover your shorts and very next day stock does the reverse.Now my question is,if the markets were really moving the stock,how would such a change in trend take place alternate days with no corresponding change in underlying conditions.Please appreciate that decisions in the above examples are not fear or greed based but purely technical. Please write a little more about the psychology of big players and highlight the difference between the thought process of traders and the ones actually moving the stock.
I have read some books of your favorite trader livermore and have actually found his understanding of the stock market absolutely bang on.I request you to guide us the changes in today's markets as compared to the markets where these legendary traders used to rule. How successful do you think jessie would have been in today's markets and why? The markets always do the same things again and again but how they do it is more important to traders.

I would really appreciate you writing a little more about these broader aspects of overall market psychology.


oracle said...

dear sudarshan

plz get urself admitted to Agra mental hopital, its close by to Delhi