Monday, January 31, 2011

root cause (words from masters)

"imagine a tree.

let’s suppose this tree represents the tree of life.

on this tree there are fruits.

in life, our fruits are called our results.

(suppose) we look at the fruits (our results) and we don’t like them;

(either) there aren’t enough of them, they’re too small, or they don’t taste good.

so what do we tend to do?

most of us put even more attention and focus on the fruits, our results.

but what is it that actually creates those particular fruits?

it’s the seeds and the roots that create those fruits.

it’s what’s under the ground that creates what’s above the ground.

it’s what’s invisible that creates what’s visible.

so what does that mean?

it means that if you want to change the fruits,

you will first have to change the roots.

if you want to change the visible, you must first change the invisible."

- T.Harv Eker


your mindset

whether programmed to be a millionaire

or programmed to be a pauper

is that invisible force

behind your present!

Sunday, January 30, 2011

why winning lottery may still not make you rich? (words from masters)

"....if you come into big money
when you’re not ready for it on the inside,
the chances are your wealth will be short-lived
and you will lose it.

The vast majority of people
simply do not have the internal capacity
to create
and hold on to
large amounts of money
and the increased challenges that go
with more money and success.

That, my friends,
is the primary reason
they don’t have much money.

A perfect example is
lottery winners.
Research has shown again and again
that regardless of the size of their winnings,
most lottery winners eventually return to their original financial state,
the amount they can comfortably handle.

On the other hand,
the opposite occurs for self-made millionaires.
Notice that when self-made millionaires lose their money,
they usually have it back within a relatively short time.

the (difference):
the millionaire mind.

some people’s financial thermostats are set for generating
hundreds, not even thousands;

and some people’s financial
thermostats are set for below zero."

- T. Harv Eker

come, let's have some ice-cream!

i am hungry

i have decided to eat my favourite ice-cream

i have opened the fridge

i have taken out the full ice-cream brick

i have started eating the ice-cream

it is so tasty and yummy!


the scoops are getting bigger

and more frequent

the technicals are clearly saying

that the size of the brick

is falling fast

and i am likely to slow down and stop!


but i am enjoying it.

the more i am eating it

the more i want to eat it!


my granny has seen me eating the ice-cream

she knows that i have a sensitive throat

so she asks me to eat only one cup.

"you have eaten enough, child!"

she says.

i look angrily at the informer (technical indicators)

they are clearly screaming that i have overeaten it!

but it is so hard to put it down!

i ignore granny's message

cold-shoulder the technicals

and continue licking and gulping

my tasty creamy ice-cream!


15 minutes have passed by now,

i have eaten

much more than i initially intended to eat,

the technicals have picked up the placards shouting

"severely overeaten!!!"

my stomach is satisfied

but my tongue is not,

neither are my intentions!

so, i continue to enjoy!!


it is half an hour since the party began!

the brick is more inside me

than left on the plate!

the technicals are red in their face.

so is the granny!


i pause

put down the plate

have a walk till the verandah

come back

look at the inviting plate

and pounce on it!


granny starts laughing

and goes!

technicals start looking the other way!


i fail to understand

why the technicals were predicting

the end of the trend

of the grand party?!

i am still feeling

as if i have just started!!!

who says i have over-eaten?

i am sure they don't know my capacity!


a full hour has passed by now.

i have finished the entire brick.

granny has thrown out the brick wrapper

wrapped around the technicals!


moral of the story:

while trading or eating ice-cream

forget about technicals

and logic

.......just follow the mood of the moment!

list of my 500+ articles so far

don't let your investments sink

tab your ego without going broke!


the great irony of trading

4 simple rules of Richard Dennis

disadvantages of being too logical (words from masters)

why supports & resistances work (words from masters)

bite the bullet!

my self challenge that keeps me going

fear of height and depth in trading!

have strong opinions,hold them weakly(words fm masters)

at times u may be right&still lose (words from masters)

trading - in the eyes of dictionary!

importance of risk (words from masters)

emotions,inexperience& trained gut (words from masters)

recognizing scalping opportunities (words from masters)

importance of training intuition (words from masters)

library of experiences (words from masters)

21 days

how to judge a trend?

looking for a jackpot?

trading @ market opening

happy birthday to you!

remembering russia's pain

life inside a pyramid

trader's fast!

kalka-howrah mail - 2

pl don't read this book.!

kalka-howrah mail

7 enemies,1 friend & 1 advisor of a day trader

swing trading vs day trading

how to overcome your sunsign in trading?

understanding PISCES traders!

understanding AQUARIOUS traders!

understanding SAGITTARIUS traders!

understanding CAPRICORN traders!

understanding LIBRAN traders!

understanding CANCERIAN traders!

understanding VIRGO traders!

understanding TAURUS traders!

understanding SCORPION traders!

understanding LEO traders!

understanding GEMINI traders!

understanding ARIES traders!

identifying a trader among the investors

best stocks for investing and trading

say no!

tomorrow never comes

the trader who sold his ferrari

paper trading wingman trading (ultimate safe method)

Just 3

want a magical method?

4 reasons why technicals go wrong!

something was missing!

he or she?

remembering my uncle!

nip that pain in the bud!

road to riches!

4 names of money

secret self talk of winner traders

uncle sam's burgers

deciding the target

platforms & airports of trading

back hand of trading!

trading @ the speed of google!

how to win big!


'the secret' in stock trading

why we don't trigger stop loss

did you fall in trade?

one way to move forward despite losses

a gift cheque for you!

why u trade decides what u get!

snake of loss!

ready for it - III

ready for it - II

mind v/s indicators

ready for it? (Part-I)

bravery in the market

the game doesn't end with technical analyses - II

the game doesn't end with technical analyses

high probability turning points (Js)

least painful trading method - II

least painful trading method

trading decisions!

day trading without indicators

future of realty sector

where to invest?

Future of I.T.

coaching a champion!

weapons of mass destruction

interpreting change in open interest

interpreting put-call ratio

understanding crowd - IV

understanding crowd - III

understanding crowd - II

understanding crowd - I

availability and affordability of hell

give me a chance!

me and my 11 friends

Don't overpay

Trading with Memory!

Gone with the wind!

4 steps to become a legendary trader!

The real horses in the race!

Clear Hai!

Why do we Gamble - I

5 M's of trading

"5s" of a trading mind

Prepaid Trading - IV

Prepaid Trading - III

Prepaid Trading - II

Prepaid Trading - I

and the winner is....

"Let's play a game!"


Trading stocks in a Casino?

10 Dog Facts for Traders

10 laws of effective trading

The Tip of an Iceberg!

The Trading Mahabharata

If you ask me

Basic Mathematics of Trading

Myers-Briggs trader personality types

What do you do when?

waiting for you!

Trading on gut feeling?

Difference of opinion!

"Don't trade!"

"Go get the prize!"

Respect the indicator but ignore it

Top Guns!

difference between trading & life's challenges

a note to the new traders

Midnight sleep-blabber of a stressed trader - II

"Why take it to heart?"

Myths & Facts about Hypnotism - II

Myths & Facts about Hypnotism

Crumple zones of stock market!

Invisible Profit Powers behind winner traders!

11 Bitter Pills of Trading!

Taking us all for a ride?

Why overnight BTST works!

Market Warfare !

Snakes in stock market

Future of Automobile Sector in India - I

Bidding for Diana!

Are you a rebel?

7 secrets about RSI experts don't want U to know!

Abraham Maslow Hierarchy of trader's needs

Seeds of loss-II

Seeds of loss!

Making of a professional trader

Choose right, sit tight!

"Holy Gambling"

Road to Heaven!

Tandoor and the Knife!

4 advance mistakes traders commit

Licking the wounds!

Are you a boat or a ship?

A crash course in Day Trading!

punishment for forgetting it

"They are after your mind, buddy!"

Languages I know

16 types of knives for a trader

A stop loss that fights back!

Not my money

Power of Negative Thinking

Apples of Himachal

"Was it you ?!"

Story of a Prince!

Hard boiled !

liars on the dalal street

"This Technical Indicator is faulty!"

Business on a rainy day!

"Paid to be right!"

how to tell how long will the rally continue?

SMA-RSI trading technique

Walk alone!

How and when I use options

56 and counting!

Who's a smart trader?

when to catch a falling knife!

Stunt trading

Birds of a feather (learning swing trading)

Exit to Hell

Grass on the other side

be like an Angel

Another way to practice trading without money

why women are better traders than men?

no time for loss!

Learning to fly!


Mind your words!

Unanswered prayer!

do it first, think later!

Why nifty may never cross 15000?

Trading lessons from Politicians

Time the trades, not the investments!

Trading lessons from butterflies

Trading lessons from turtles

"I Quit"

Let go! (Power Soup for the injured traders' soul)

A hen for 100 bucks?

PAT on the back

Fore-noon Express!

Noon Express!

go with the growth!

True value of a share?

Only way fundamentally good stock can crash!

Investing without tears!

A pin for the balloon (When to short?)

Forget about the legs!

When to square-off and reverse?

Doing a SAR with RSI and William%R

How rich are you?

The ghost under the lamp post no.5000!

Is fundamental stock picking difficult?

3 enemies of a trader

"No lollipop pl !" (Understanding Balancesheet-II)

"Dearest Papa!" (Understanding Balancesheet)

Profit by chance!

Fundamental difference

To eat or not to eat the cake (U/standg F/mentals)

Sit on the mushroom! (Understanding Fundamentals)

When u miss the train

"Keep it up!" (in lighter vein)

"any amount, my child!"

Try this out - IV

it shows in the results

The price u pay!

A dog in the Metro!

Understanding Hedging - I

Squaring-off too early or too late?

Think again!

Crouching Trader, Hidden Chameleon!

3 to choose from

Take good care of your car!

the multiplication factor

Hazaaron khwahishen aisi

Everything or nothing

Why Shorting is different?

If u were a stock what will be your price?

Archimedes Principle in stock market!

Invest with Lighthouse-in-the-sea!

Business Ideas

8 types of Money

The wonder called Mental Accounting!

6 Laws of Trading Risk

Legs for the Will!

Something happens at 61

Swing trading with Fibonacci

Interpreting Fibonacci Levels

The turning point!

Understanding Fundamentals - I

R-Criteria, P-Criteria

William-RSI Combo Hypothesis

Try this out - III

Try this out - II

Why u must not miss BTST?

Try this out

From the sea to the swimming pools

Midnight sleep-blabber of a stressed trader

How market beats us

Lines of defence in trading!

What's your Achilles' Heel?

Fundamentally Technical !

How traders can "get" 70% "discount" on anything!

Have a break!


Turning points in my stock trading career

101 ways to know the current trend

Trade with Mr.William

My journey in stock market till now

Do this to boost profits & choke losses!

The 15 minute rule

How much can be made from 1 lac per month?

Understanding Islamic Investment

Have you got your heat treatment?

A strange way of stock picking

Intention and ambition of stock price!

The Apple & the Wire-mesh Technique

Efficiently Effective

Gambling is not good but

8 paradoxical commandments of stock trading

Stepup stepdown theory (mother of all trading theories)

Forget her!

On road to your drug discovery!

My Swiss Army Trading Knife

First, just pull the plug!

Take this trader test & know yourself better

Life lessons from RSI

Who will decide .?

RSI-SMA double-trap technique

"Its all in your head, youngman!"

Why is the man on the other side laughing?

Unfinished story

Trade "hunting" lessons from Lions!

Don't close your eyes!

Welles Wilder - father of RSI & SAR (a biographical sketch)

One RSI, Two Rubber bands

Dr.Elango's RSI dilemma

RSI - rocket behind the price!

Things to look for in price-rsi charts

Why I prefer trading Nifty instead of stocks!

Aban - a Titanic dilemma?

Open your mouth!

My RSI side-notes

Uncle Chips' cool advise!

Advanced Jet Trainer

Helicoptor is better than Microscope!

The Toy Indicator!

The Greasy mess of Greece

Photographs of tired RSI

Invest in & hold on to these 10 stocks for lifetime!

Pizza delivery experts

Fill it, Shut it, Forget it!

To RSI Sir, with Love!

Amazing Side-Effects of RSI !

8 stages of the Price-RSI rocket

8 voices Overheard in a coffee house near stock exchange!

RSI - the fox!

Trading, MF or ULIP ? Straight Talk

3 "hands" and 1 "window"!

Onions with a pinch of salt!

"Long-term greedy"

Itch thrills but kills!

"Thank you, Sethji!"

RSI Protocol

The Final Method (U'll never lose ever again/Will recover all lost)

Be punctual ! Use Watch !

Real Tears,Sweat and Blood!

What my 28 teachers tell me when i am afraid to take risk!


87½% chance of profit!

Essay on "trader" written by a trader's son in matric exam!

Is it a Bye or a Goodbye?

Stop! Face it!

Aladdin's Genie and the stock trader

Difference is in the language!

"You won't do it"

The Good,the Not-so-bad & the Ugly timing

How to trigger Stop Loss and still be happy?

Do u have a "Swiss" Bank account?

Do u have this money plant at home!

How to BTST with RSI

The Man who brought the world down?

"Hello! I am Lakshmi Ramachandran !"

Exhausted RSI is worth a million dollars

a diary page found on the road!

"ye suicide hi tha!"

What is the blood group of a trader?

The mood of the master can be judged from the behaviour of the servant (Mastering RSI-I)

R U a developed country?

Day Trade with RSI

5 is a Porfolio, 40 is a Zoo!

"Hasta la Vista, Baby!"

A daylight robbery!

A stock without face!

Technical view of implications of RBI move

The Boy Plunger (a biographical sketch)!

Testing the Dog's mood!

Sun Tzu & the art of trading

Candles with a single wick never lie (Understanding Candles-III)

Signs of Amateur and Professional Traders

Candles with a single wick never lie (Understanding Candlesticks-III)

Start, Pause, Stop (Understanding Candlesticks-II)

U already know all about Options! (Understanding Options-III)

$implicit¥ (Understanding Options-II)

Long live the experts!

Mr.Morubozu and his family of Talking Candles

3 ways to shop a stock (Understanding Options-I)

When wishes became options

20 Un-Optional laws of Options

Where to put stop loss in day trading?

This season catch the cold!

Trade the Cheetahs, avoid the Elephants

3 'S' to enter, 4 'S' to exit!

"Don't trade, if you need to make money"

Don't be adamant

Dow Theory

Do u feel bored in trading! Congratulations!

Climbing the mountain with Support Hooks (Chart Practice)

Don't mix the two

How to use Trailing Stop loss?

Honorary BA (Stock Trading)

To swing or not to swing? (Dilemma of a younger brother)

Trading blunder

Biggest blunder in trading!

"Tips are for waiters"

The best trading software in the world

Do you have the magnet?

Double Trap Intraday Technique

The missing bite!

Harshad Mehta (a short biographical sketch)

How do you do that!

What all to look for in a graph?

Rakesh Jhunjhunwala (a short biographical sketch)

Predicting the Volcanos in stock market

A blessing for the educated unemployed,underemployed & the exploited

Trading Brahmaastra

How to make double money .(Part 2)

How to make double money .(Part I)

It is not about money, honey!

16 Basic etiquettes of stock trading!

Don't worry, be Happy !

Trading Strategies for big events like Budget!

Pay Cheque mentality!

3 Secret Trading Lessons

"The 8th wonder of the world"

Shadow of the Bull/Bear

How to estimate price graph of the next day?

Deadly combination of 34 and 8

Your job is a stock !

A million rupee opportunity?

Nifty @ 6600 this year?

Trading lessons from Elephants

Trading technique only for the frustrated,dejected & rejected!

What's in my left pocket, What's in my right pocket?

PESCo PESRIIICO .(Fundamentals of Fundamentals)

The birds are free . (Trading Strategy)

A very strange trading strategy

Catapult Day Trading Technique

What do they do when .?

"bewafa" nifty

The Story of Mr.Smart & Mr.Wise

A "different" technical indicator !

The surest way to lose

Informers, Advisors & Body Guards (My Trading Method)

which trading technique should you use

BTST at its rawest !

when everything else fails, try this trading technique

laughing all the way to bank

13 earthquakes of Stock Market

I admire your patience

Do you hate the punters?...don't !

Do u play with white or black?

Climb, Spike and Shift (Day Trading Technique)

Kneel and Jack (Day Trading Technique)

Are you sure?

4 options when your stock is going down

Last 75 minutes of an injured trader & the dying declaration

Did u get the Opportunities!

Post Dated Cheque in your name

Guerilla Trip Trading (Power Weapon)

Have you ever run after a hen to catch it?

Neurotic and Psychotic traders

An innocent question by the mosquitoes

Who's the BOSS? (Part 2)

Who's the BOSS? (Part I)

4 kinds of portfolio diversification

5 Express Metro Trains in Day Trading

How to trade Gap Opening

Trading Lessons from Cricket

Trading Lesson from James Bond

The Truth behind Technical Indicators

A secret library at my home.....confession of a trader!

Newton's 3 laws in Stock Trading

Traffic Lights of Stock Trading

Simple & Effective basic way to profit in Day Trading for new players

Golden Technique to Profit if u r caught in falling market

4 mental states of a trader

Importance of risk taking in stock trading

4 kinds of stock market "experts"

4 kinds of opportunities

4 kinds of winners and losers

4 kinds of trader reactions in shaky markets

4 kinds of followers

4 kinds of traders in crumbling markets

gaining money v/s gaining stock

U can't be a winner in stock market without this tool

How to tell u have entered the right trade?

Why is Stock Trading the best business in the world?

Advance RSI interpretation

Fundamentals or Technicals?

Trends and Ranges

Advantages and Disadvantages of Futures & Day Trading

Not making money in the market? Only losing?

Try this Magical Day Trading Technique

how i first started nifty futures trading

share trading is like boxing...

waiting ke paise...

One sure way to tide over the LOSS hangover...

Emotions are enemies of the trader

Take care of the losses and profits will take care of themselves

magic of resistance & support

ride the trends, avoid the ranges

150 Top Stock Market Quotations

who changed my cheese?

call it a corollary of the murphy's law

call it a derivation from darwin's theory

call it an epilogue to dr.spencer johnson's mini-masterpiece "who moved my cheese"

but i have realized and experienced and seen


two things are sure to change

over a period of time

- the rules of the game, and

- the game itself !!

the only consolation is

that it will still be a game

but a totally different one,

the one which you didn't prepare for,

the one which is totally opposite to

what you prepared for!


just when the US and the entire world got assured

that US will be the sole superpower

in post USSR era,

arose (out of almost nowhere)

the head of a mighty dragon

called China!


now, just when the world is getting the confidence

that it has now learnt to deal with the post-lehmann era

and things are settling down

the entire scenario is going to be changed

by something!

which no expert can see!!


we are always overwhelmed by the present

so much so

that the tiny green-shoots of future

emerging from the soil of present

go totally unnoticed

amongst the grass of confusion!

till they have become overwhelming



just when the world is getting assured

that things have fallen in place

post 9/11

the entire stage will be replaced

by something new

or something totally overlooked!


just when microsoft was handed certificate of invincibility

even by its competitors

a google popped up

and changed the game

while all it wanted to do was

change the rules of the game in its favour!


and just when google is dreaming of the invincibility certificate

the techtonic plates are starting to shift again!


it has always been happening

it will always keep happening!


this phenomenon applies

to everyone and everything in this world

from our lives

to the lives of the companies

to the lives of the nations

and everything and everyone



whenever we are sure

that a particular thing

is now destined to be there forever

something (which was coming but we never saw it)

takes us totally by surprise,

seems to have reset the rules of the game!

it's only after a while

that we realize

that not just the rules of the game

the entire game has changed!!


humans don't like change

they find it difficult to change

before or with the change!

they start changing after the change

but with lots of hidden resistance.

so, by the time they think that thay have changed

the change has changed!!


no sooner than the mental models are ready

to deal with a situation

the situation (and not just its defining parameters)

changes dramatically

making the model-in-hand


and thus necessitating a new model!


the ones

who can make the new model

fast and accurate

will be the winners

in any game in the world!


in ben-10 alien force

on cartoon network

grandpa max

says to ben-10

"son, not everything on earth

finds mention in the books.

and that's where

the fairy-tales are born!"


we will never be able to know everything

we will never be able to comprehend everything

we will never be allowed to comprehend everything

atleast at the same time!

the moment we turn our head and attention to the right

something on the left

will start shifting the techtonic plates!


only present makes the news

that too only the beautiful eyes of the present

everything else goes unnoticed!

the womb of the present

where future is taking shape

is always hidden!


have you noticed

that even in your lives

by the time you learn to patch-up with the reality

by the time you force yourself to be comfortable with the uncomfortable reality

the reality has changed!!

leaving you much behind!!!



around and inside us

is being driven by this phenomenon!


there are 3 kinds of people

and companies

and nations

in the world:

first, ones who are always trying to catch-up and hence will never catch-up

second, the ones who are the cockroaches in the evolution of life (who never change and keep playing their own game in a separate playground)

third, the ones who happily change the model with the change!


it is not just the question of

who is moving your cheese!

on more serious note

the fact is

your cheese is itself changing

into coffee!!!

Saturday, January 29, 2011

don't let your investments sink

if a stock has moved 200 points in 1 year
how many points can you make in investing in that stock?
obviously not more than 200!
now, if i told u that
this stock
fell by 200 points
and not the other way round
what will be your answer?
again, obviously, you will say
that what to talk of making 200 points
you would have lost 200 points
by remaining invested in this stock
in the last one year!
i am talking about reliance industries!
it fell from 1111 to 911 in one year!
will you believe me
if i tell you
that there are people in this market
who have made more than
1000 points in reliance industries
in this one year
and that too
when they were
in this stock!!!
yes, it is true!
reliance industries
travelled this 920-1120
delhi-mumbai route
more than 10 times in last 1 year or so!!!
this makes it more than 2000 points!
so, making 1000 points out of this is not a big deal!
but how did they do it while staying invested on the long side?
while they stayed invested in the stock
they protected their investment
whenever it took a clear down-trend
by buying put options. --
out of 2000 plus point movement
they managed 1000 odd points.
and that too when the stock's net movement was just 200 points!
while pocketing all the dividends
and making the investment tax free!
protect your investment!
it will reward you doubly!!

tab your ego without going broke!


like many people on this earth


limited money

and an unending long list of

'gadgets to buy'!


what did i used to do earlier?


i always started spending

on the gadgets i wanted -

starting from the one

available at the nearest store!



i always remained


despite decent earnings


i changed

the strategy!



i have stopped buying gadgets

which do things DIFFERENTLY.

i buy

only the ones

which do



the results were amazing!!!

i realised that

very smartly

and shrewdly

newer gadgets

and newer version of old gadgets

were being power-marketed

down our pockets

thru our head

with just newer ways of doing old tricks

(like the touchscreen in phones and pads,

like push button start of cars, etc.)

the new features introduced

were either not of very high utility

or were easily available free of cost

from the net.



my expenses crashed

my savings leaped

and my experience and exposure and exploration

of the world

still the same

(rather, better because of financial security)


i am ready to change

my camera, netbook, car, mobile, tv etc.


not till the newer versions on the shelf

do same things differently



my net book

has bigger screen than the ipad or galaxy tab

can play all the applications they play

has free real keyboard instead of virtual tiny one

has many times more memory

and so many more features!

the only thing

it doesn't have

....touch screen

to tab my ego!

and that is ok for me

i have discovered other ways

to tab it

better and bigger!!!

Friday, January 28, 2011


dip your shoes in blue ink

and walk 20 steps

in one direction

on a red carpet!


now remove your shoes

come back bare foot

and join (with a marker pen)

every left footprint

with the next right footprint

and further join

this right footprint

with its next left footprint!


what do you get?

a line joining the footprints

in a zig zag pattern


but still moving

in a definite direction!


same thing happens in stock market!

market moves on its two feet

of "high" and "low"

in a zig zag way

but always in a particular direction!


traders confuse the zig and zag

as the change in direction!

they focus on direction of zig AND direction of zag

and not on the direction of zig-zag!!


consequently, the fear takes the better of them

and they chicken out!


those who are well-versed with the market's wavered walk

ignore both the zig as well as the zag!

instead, they just keep an eye on the net direction of the zig-zag!


with practice

they can tell

when the zig-zag changes its direction

and hence the trend!

and with it, they change the direction of their trade as well!!!


zig zag is the last dodging tactic of the market.

the trader

who can see through this tactic

has got the ultimate master key to riches!!!

Thursday, January 27, 2011

the great irony of trading (words from masters)

"the great irony of trading is

that it is difficult

precisely because it is so very simple.

our left (logical) brain often has a real problem with this concept.

it doesn’t make sense to the logical top-down left brain

that it is simple to make money trading.

our logical mind imagines

that if trading were simple,

more traders would be successful;

therefore, trading must be complicated."

-Curtis Faith

4 simple rules of Richard Dennis (words from masters)

1. Trade with an edge

- Make sure that you have a trading strategy that will make money.

2. Manage risk

- Don’t trade with so much leverage that you risk losing everything.

3. Be consistent

- Do this to reap the benefits of your trading strategy.

4. Keep it simple

- Don’t try to make trading more complicated than it actually is.

disadvantages of being too logical (words from masters)

"I believe

that most left-brain-dominant people

have great difficulty

trusting their intuition.

In these individuals,

the left brain is incharge

and wants explanations.

When the right brain can supply them,

the left brain is satisfied.

In contrast,

if the intuition comes as a feeling,

a vibe,

or a bodily sensation,

left-brain-dominant people have a hard time

giving the intuition any credence.

The left brain wants explanations;

if you can’t supply them,

it won’t believe an intuition.

This lack of trust in your intuition

can be a big impediment

to your ability to improve in your trading."

- Curtis Faith

why supports & resistances work (words from masters)

"A very significant part of the reason

prices appear to “bounce”off

support and resistance levels

is that many traders have observed

this effect and expect to see it in the future!



support andresistance is partly

a self-fulfilling prophecy.

Traders buy at support levels

in expectation of the rise in prices

due to the support itself.


Traders sell at resistance levels

in expectation of the decline in prices

due to the resistance itself.


When multiplied,

these effects make support and resistance

one of the most powerful concepts intrading.

The behavior of market participants

reinforces the effects themselves."

- Curtis Faith

bite the bullet!

in ancient times

during wars

when there were no anesthesia,

and a surgery was to be performed

on the wounded soldier

the doctor

would ask the patient

to clench a bullet

between his teeth

to be able to bear the pain!

the wounded soldier

had no option

if he wanted to recover his life!


this lead to the phrase

"bite the bullet"


in stock trading

a lot of soldiers

get wounded everyday!

despite the availability

of highly advanced anesthesea

in the medical world of today

there is none

for the wounded trader!

he still has to bite the bullet

and keep moving


he wants

to survive

and succeed!

my self challenge that keeps me going









fear of height and depth in trading!

many traders don't feel comfortable

to buy "high".

they like to buy "low"


but their is a fundamental flaw in this thought!

how do we know that a "high" is a "high"

and a "low" is a "low"?

a "high" is a "high" when compared to a "low"

but it is a "low" when compared to a "high"!


a "low" is a "low" when compared to a "high"

but it is a "high" when compared to a "low"!


this is the reason

why traders

who are looking for a "low" to enter

hesitate to enter even much lower than their "low"


this is the reason

why traders

who are looking for a "high" to book profit or short

hesitate to do so even much higher than their "high"


in behavioral psychology

this is known as "recency bias".


so, what's the solution?

just do what your method

or trained gut says!

don't bother about

your fear

of heights

or depths!

have strong opinions, hold them weakly (words from masters)

"(trading) wisdom

is the capability to have

'strong opinions, weakly held'


weak opinions have a negative impact on trading.

master traders are decisive.

to make money, you need to take trades.

as a practical matter,

this means developing models for how the market works,

testing them,

and then making live trading decisions using those models.

traders need strong opinions about how the market works

to make critical trading decisions.

many people have trouble pulling the trigger.

if you have weak opinions, you will find this even more difficult!


(but you should hold these strong thoughts weakly)

you should (trade) as if you are right,

but also look and listen as if you might be wrong.

this requires a certain level of humility and openness.


strong opinions should be weakly held.

expert traders are constantly on the lookout

for why their thinking might beflawed.

when you place a trade,

you should pay far more attention

to signals that

the market is acting in a manner that indicates the trade is wrong and should be discarded

than to the reasons why the trade should be kept."

- Curtis Faith

at times u may be right & still lose (words from masters)

"Perhaps the most insidious instinct for traders

is the brain’s tendency

to equate the quality of a decision

with its outcome.


The brain

is NOT designed to process

the type of low-probability outcomes that traders often encounter,

where losing is part of the game.

Therefore, new traders will often make a trade, lose money, and then think to themselves,

“I shouldn’t have made that trade.”

In behavioral finance,

this tendency is known as outcome bias.


Master traders know that any particular trade could be a losing trade

and that good trading strategies often bring losing trades.

Therefore, they have learned to undo the effects of this outcome bias

and to focus not on the outcome for a trade,

but instead on

the quality of the decision behind the trade."

- Curtis Faith

Wednesday, January 26, 2011

trading - in the eyes of dictionary!

i checked up the dictionary

for the meaning of a 'trader'.

this is what i found

"a person who buys and sells

goods and services"

by this definition

everyone in the stock market

can claim to be a trader!

not only this

we can claim to be a successful trader

as long as we manage to successfully buy

and successfully sell shares!


nowhere did the definition mention

that one needed to be profitable

to be a successful trader!


i looked further and found

"trade on"

i checked for its meaning

"take advantage of"

it said!

that was better!

we must 'trade on' opportunities!


i looked still further

and found

"trade off"

i checked for the meaning

"exchange something as part of a compromise"

i realised that this is what majority of us do



so, in reality

we don't trade

we trade-off!



i decided to look for "profit"

i checked for the meaning

it said


by this definition

we all are profitable!

because we are in a state of advantage

in majority of the trades

for majority of the time!

that we let the advantage slip-by

failing to book the profit,

is a different matter.

but the definition never mentioned

that encashing the advantage

was important to be profitable!


i was happy to note that we are in profit

for atleast 90% of the time

we are in the trade!


i checked further

and came across the word


the dictionary gave the meaning as

"the making of a large profit

in an unfair way"

this reminded me

of the big pockets of the market!

surely, they are the ones profiteering!

but what do they call the big profits earned in a fair way?

i wanted to do that!

but the dictionary was silent on this!



now i felt like

checking it up

for "loss" also.


the dictionary said

"the feeling of sadness after losing a valued thing"

....on reading this definition

the mountain of buried losses

deep inside me

erupted like a volcano!


i looked some further

and saw the phrase

"at a loss"


"uncertain or puzzled"

well, that's what we are

during trading a loss!!!



i looked up for


it said

"knowledge or skill gained over time"


and i got ready for it!

importance of risk (words from masters)

"the instinct for avoiding unnecessary risk

can be very powerful.

this is a trait that ensures survival under conditions of danger and uncertainty.

but in trading, avoiding risk will prevent you from becoming a good trader, let alone a master.

traders trade in risk; it’s that simple.

master traders view risk as an important and necessary ingredient in any potential trade.

they know that the very best trades are often

the ones that are hardest for most people to make because of the perceived high risk.

the very fact that a trade is difficult to initiate

makes it less likely that others will also make that particular trade.

the lack of a large number of traders taking a similar position

makes it much easier to make money during the subsequent price movement."

- Curtis Faith

emotions,inexperience& trained gut (words from masters)

"there is a big difference

between trading emotionally and trading from your gut. emotionally means reacting to fear and hope, which can destroy your trading decisions. from your (trained) gut is different.

inexperienced right-brain traders are susceptible to acting on ideas

based on feelings drawn from erroneous principles

because they have not sufficiently trained their right brain in proper trading principles.

they have not yet supplied the right brain

with enough of the raw material required to make proper judgments.

for this reason, the gut reaction of the novice trader will often be wrong."

- Curtis Faith

recognizing scalping opportunities (words from masters)

"For extremely short-term trades,

relying on the right brain is often the only practical approach.

Traders simply do not have enough time to perform complicated analysis.

Traders who are scalpers must trade mostly using their right brains.

For longer-term trading, traders have plenty of time for analysis.

The left brain is good at building and understanding models for how the world of trading works,

and the right brain is good at generating ideas

and recognizing opportunities."

- Curtis Faith

importance of training intuition (words from masters)

"The experiences you encounter

while trading

train your intuition

so that, in time, you can become an expert.

Learning as a trader can be difficult, however, because of the price of mistakes.

In trading, mistakes cost money.

Fortunately, traders can develop their intuition to a high level of expertise

without having to put their money at risk."

- Curtis Faith

library of experiences (words from masters)

"To become a master trader,

to be able to intuitively make good decisions,

you must first gain enough of the right kinds of experience.

This is why doctors and nurses go through extensive training and supervision when they are new to the profession.

It is why firefighters train in fire simulations,

and why airline pilots train in flight simulators.

Through this constant exposure and consistent practice,

experts build up a library of experiences that they can draw upon

when making decisions."

- Curtis Faith

21 days


by psychologists

have proved


any routine

repeated religiously

without break

for 21 days

becomes a second nature

a habit!



it includes

all the easy

bad trading habits.


but fortunately

it also includes

all the difficult

good trading habits!

Tuesday, January 25, 2011

how to judge a trend?

many of my mudraa friends keep asking me how to judge a trend.
many share with me that one of the main reason behind their loss is that they fail to judge the
so i thought i should post a separate reply for this.
while there are many ways to judge a trend
let me share with you just one or two
the easiest ones!
but before that
let me say share a fundamental mistake traders make
when they are looking for trends!
they look for the broader trend
and react on the sub-trend!
your losses may decline sharply by just this one change
- try to judge the trend of the day
and not the trend of "these days"!
we lose in a day and blame the week!!
there are trends in trends.
the smallest identifiable and tradable
trend is the trend of a few hours.
as mentioned by me in my recent posts,
a stock or nifty can have upto 3 trends in a day!
so, practically speaking you can be wrong in trend picking upto 3 times a day!
so, where is the question of knowing the trend of "these days"?
majority of traders take positional trades
which, on an average, lasts for 5 days or so.
at the rate of 3 trends per day
we are talking about 15 sub-trends in one trade!
so, as i was saying
traders take positional trade
expecting one broad trend
on the way
they get a big hit by one big move of the 15 sub-trends
and quit
licking their wounds
and cursing their skills!
it is surprising that
these swing or positional traders
are mostly
sitting in front of the terminal
for hours!
(they have taken very big trade bites
and so can't help looking at the terminal every now and then)
so if you are available in front of the screen
why not keep checking the sub-trends
and take timely intraday action
to protect your profits and/or investments!
lets talk about the trend spotting ways!
if the price is below sma 34
the trend can be broadly taken as down
and if it is above sma 34
the trend can be broadly taken as up!
during down trend
you will occasionally see price rising from below and trying to touch sma
and, at times, even piercing it thru!
similarly, during up trend
you will occasionally see price sliding from above and trying to touch sma
and, at times, even piercing it thru!
both these situations don't indicate
change of trend
the price stays well on the other side of sma34
for good time!
during uptrend
the feet of the price zig zag
stays above sma34!
during downtrend
the price wave hangs from the sma34 line above
like wet clothes hanging with clips from a wire!
i find this simple way
enough in most of situations!
both for intraday
as well as positional trades!
i use google finance charts.
on 1 month chart
sma 34 setting automatically takes 30min tick size
on 5 day chart
sma 34 setting automatically takes 5min or 2min tick size
on 1 day chart
sma 34 setting automatically takes 2 min tick size!
different software take different tick size
and it makes hell of difference!
if the sma34 setting is ok
you will be able to judge the trend reasonably accurately and timely!
another way to estimate a trend is
to join the top and bottom points in a zig zag price movement!
if both are falling
the trend is down.
if both are rising
the trend is up.
if both are in opposite direction
then the trend is more or less rangebound
with a bias towards the line which has more sharp angle w.r.t. horizontal.
majority trend reading errors happen
because we assume that
price moves in straight line!
this is fundamentally
and totally wrong!
price movements happen
in zig zag movements
just like the movement of a snake
on sand of desert!
we see just one arm in the zig zag movement
and take the fatal decision!
trend is a friend
and it pays to recognize one correctly!

looking for a jackpot?

9 out of 10

traders in the stockmarket

expect to hit a jackpot

sooner or later!


rather, they expect this to happen

sooner THAN later!!


probably as soon as today

if not right now!!!


so much so

that their entire trading system

and psychology

and habits

are heavily tilted towards

this overwhelming subconscious expectation!


it is an open secret

that jackpots

generally don't show up



majority traders

have greyed their

trading hair

while waiting ashore

the stock market river

with their expectation nets

immersed deep

without any jackpot catch!


on the contrary

they have spent and lost

enough bait pennies

to make a jackpot

of their own!!!


those few traders who did stumble on a jackpot

more out of luck

than by design

lost it double fast

and remained hypnotised

for the rest of their lives!


rare events like jackpot



and unexpectedly,

if at all!


you can't make

trading castles

on the sandy shore

of jackpot expectations!



start with small and steady gains

thru a dependable method

improve it

convert it

into a habit

and then

try to increase the size of the gains

systematically and safely!

the returns this way

will not be jackpot

but jackdrum!!!


in a research in U.S.

it was proved

that bumblebees

prefer those species of flower

which assure steady availability of nectar.

they avoid those species of flowers

which may, at times,


a "jackpot" of nectar

but majority of the times

return the bee empty mouth!!


not surprisingly

bees fill more pots of nectar in their lifetime

than a jack!!!

Monday, January 24, 2011

trading @ market opening

nse opens for retail traders at 9.15am

there is almost always a small stampede in one direction after opening.

this mad rush remains for 15 odd minutes (rarely for 30minutes).

market almost inevitably

retreats after this

full or partial.

if someone takes reverse position at this first turn

he is likely to get

a quick profitable ride

possibly all the way back to the opening tick.

if it doesn't go back all the way

then profit can be booked midway.

if it turns back after retreating somewhat

entry point should be used as stop loss.

if it crosses stop loss

reverse position can be taken

albeit very cautiously and with strict stop loss.


caution: since this is like a 100meter sprint

attempt this with high speed online demat connection only

with 110% attention

and after practice for a few days

with small lot.

happy birthday to you!

future is a dream

past is a memory


both are a myth!

they never come


both are


dress rehersals

by today!


past came as today!

and so will come the "tomorrow"!


every night

when you retire to bed

and your eyes shut the consciousness

you seize to exist

till morning!

"you" are helpless

"you" for "you" are "not there"!


every morning

you are born again!


with memories of your last birth

of yesterdays!


everyday is your birthday!


life is like day-trading.

whether you plan a swing-trade

or investment

a day is all you have got



don't run after tomorrow

for there is



today is the tomorrow you were waiting for!

say hello to it

and do what you wanted to do!


every morning


"happy birthday to me!"

Sunday, January 23, 2011

remembering russia's pain

before disintegration

of the mighty USSR

in 1991

russians had huge money in circulation

all of which

couldn't be spent in russia itself

simply because the money supply was too huge

for the russian markets

to absorb!

so, russians spent it

in buying from other USSR states!


but when USSR disintegrated

other fellow states

became independent countries

with separate currencies!

rouble was no longer

worth anything there!


huge money supply resulted into

huge inflation!

products and services became very costly.

simultaneous external liberalisation

(as a precondition to getting huge dollar loans

for buying raw materials and essential commodities)

ensured that costly russian goods

got crushed under cheap imports

small corporates went bust

bigger ones barely clung on.


rouble suddenly became very very weak in front of dollar

crushing for inevitable imports

superb for nearly impossible exports


with the collapse of businesses

ability to pay taxes went down.

without taxes, government couldn't pay salaries

(most russians were in government jobs)

government couldn't undertake infrastructure development

or social welfare.


all this while

government couldn't opt for

deficit financing

as the money supply was already very very high

deficit financing would have driven it to suicidal levels!

so, those who had roubles without salaries

could still manage for some time

while others were on street.


all that the government could do was

1) either wait till even the rich russians were penniless

and then release more roubles, or

2) wait till inflation had hit peak (and trade had touch its bottom)

hopefully without serious casualties

and then gradually release fresh roubles.

none of these were good options

despite being nothing more than temporary hopes!


best options available were

- default on debt repayment saving precious foreign currency

- stop imports except most crucial

- export whatever was possible

- let russian industry stand up on its feet in the absence of imports

- reduce taxes, tax the rich

- not to stop paying salaries, but reduce them

- reduce ineffciency

- reduce payrolls, give others indirect employment

- let corporations and industries make profit

- let equilibrium come over a period of time


almost overnight

the communist



was reduced to a developing



struggling to remain afloat!


this was to be

one of the most painful economic transitions

in the world history

with no short-cut solution!


it was 1991 then

today is 2011

...20 years have past

the giant

has silently recovered

from the nightmare!



has been forgotten

on the world economic stage

and it is a big mistake!


pray nothing ever happens to dollar

otherwise the results will be

hundred times more painful

for 3/4th of the world!

life inside a pyramid

a person's ability to live a good life

depends upon

his or her ability to spend money

which in-turn depends on

his or her ability to earn money

which further depends on

his or her ability to sell something (product or service)

which depends on

his or her entrepreneurial abilities.


everyone doesn't have those.

majority want

a plain good job.


allow one entrepreneur to be a billionaire

10 millionaires will be born

supported by

100 high networth individuals

supported by

1000 middle income individuals

serviced by

10000 salaried group

besides indirectly

giving passing opportunities

to 100000!


without entrepreneurs economies collapse!

and for entrepreneurship to be lucrative

we need entrepreneur-friendly business environment.


but one thing is clear

today's economies are fundamentally

pyramid shaped!

divided, inevitably, into vertical classes.

pyramid economies

result into

pyramid social set-ups!



those not trained or able

to add any significant value to this pyramid

are likely to be left out

especially in the absence of a social security network!

Saturday, January 22, 2011

trader's fast!

a trader was losing in the market


he tried every indicator

but lost!

he then opted for tips...

that too didn't help!

on someone's advise

he then took to astro-trading


started losing more!!

he was fed up!

he surrendered!!

but he simply couldn't digest

that he had lost!

"there must be a reason!

i will not quit till i get a satisfactory answer for my repeated losses!"

he went to the veterans of the market

and experts

and successful traders

to know the reason

why he failed!


but everyone he met

wasn't happy with

his or her own results!


he stopped eating!


one day went past!

his frustration didn't subside.

he was dead hungry

but he didn't eat!

another day came

and went.

by now

his fast had extended beyond 48 hours!

his anger had been blunted

and so had his hunger

but not his resolve

not to eat till he got the answer to his question!


he continued his fast!

one more day passed

then one more...

he went very weak

but only physically!


on fifth night

well past midnight

the goddess of stock market appeared in his dreams!

his dimming hungry eyes

were suddenly lit with a spark!!!

he got the golden chance he was looking for!

"ask me anything, son! i am happy with you!"

"but you are not happy with me inside the market, mother!"

the goddess was taken aback at the blunt question!

"yes, i am not!"

"why mother? that's the question i started this fast for! why am i constantly losing?"

"why don't you ask me something else, child?"

"no, mother, if you are happy, give me the answer, tell me the secret!"

"well, then listen!

every trader in the market

is out to BEAT THE MARKET!

this makes me very angry.

nobody out there

wants to

BE WITH the market!!!

i fulfill the wishes of those who do!"


saying these words

the goddess disappeared!


the ecstated trader broke his fast

and started waiting eagerly

for the monday morning!

kalka-howrah mail - 2

the youngman soon became a successful trader!

after a few months

he visited delhi

for some official work.

in the evening

after getting free

he took a taxi

to the newdelhi railway station.


on reaching the station

he jumped out of the car

without paying!

"just wait here and take care of my luggage, we need to go further!" he said to the taxi driver

and then quickly rushed inside the station

leaving his suitcase

and the bewildered driver




he went straigt to the ticket counter

bought the "multi-purpose any-train-on-the-route ticket"

came out

sat in the taxi again

and politely ordered

"pl take me to the underbridge 3 kilometers ahead!"

the taxi driver gave a strange look to the youngman

started the taxi

and reluctantly did what he was told!


the driver stopped the taxi

under the bridge 3km ahead of the station!

the youngman was happy

the driver was confused!


the guy paid the fare

thanked the driver

picked his suitcase

went under the bridge

and stood beside

a dozen railway tracks

under the railway signal pillars!


the taxi driver

was still there!

he wanted to doublecheck

what the suspicious youngman was upto!

and then

what he saw

made his eyes pop out of the sockets

in sheer disbelief!


a train came

stopped in front of the youngman.

the youngman looked for his coach

climbed in

took his seat

looked out of the window

and waved at the taxi driver!!!


the train again started after a few minutes

and picked up pace!

the lad took out his cellphone

and called home

"mom! i've got the train! on time!!"

"don't catch the wrong one this time, son!" mom replied jokingly!

"this time it is the right one!!"

"has it left the station?" she asked again

"it must have left sometime ago, mom!"

"what do you mean?" the shocked mom asked

"i caught it in-between!"

"good lord! what do you mean by 'in-between'?"

"mom, i always noticed that all trains stop at the subzi-mandi rail lights after moving out of new-delhi railway station. every train has to make way for the next train approaching the platform irrespective of whether the line ahead is clear or not! many times, it isn't. almost all trains move out the station but pause at these lights under the subzimandi bridge till they turn green! i came till here on taxi and didn't have to wait much!"

"didn't you feel awkward?"

"no, mom! not at all! i do this every day in my stock trading!"


"everytime a stock moves out of a range platform i always notice that it pauses and retreats a bit after moving out to some distance. it makes a higher low or lower high and then zooms ahead! i always enter the trade at that time, mom! this way, i am always in the right trade at the right time!"

pl don't read this book.....!

either read this book


or make sure you don't touch it

20 years down the line

after you fail in all attempts

to be a millionaire!!!

because if you touch it then

you might be tempted to shoot yourself

for having ignored it

20 years ago

when you had

time on your side!


"the secrets of the millionaire mind"

by T.Harv Eker

(superb translation in our national language Hindi also available)

Friday, January 21, 2011

kalka-howrah mail

the auto reached new delhi railway station

the youngman quickly got off

picked his suitcase

paid the driver

and rushed in

straight to the ticket counter.

"one IIAC for kalka pl"

"which train"

"kalka-hawrah mail"

"pl fill this form"

he took out his jetter

jotted down his biodata

got the ticket

and rushed straight to the platform

crossing 7 platforms in-between

using the overbridge!

the train was ready

he had reached

just in time

once again!


kalka is the border point between haryana and himachal.

howrah is in west bengal.

'kalka-hawrah' mail

moves like a long necklace

around mother India

from around her neck to her left hand

extended towards far east!!


the youngman

dropped on the berth

took out 'trading your gut' by alexander elder

looked at his watch

and smiled big

anticipating a great journey

to the foothills of the himalayas!



but the train didn't start.


the train didn't budge!



it started

and the youngman heaved a sigh of relief!


but to his surprise

it started inching in the wrong direction!

"it is just shunting with some coaches" he said to himself.


with a push

the train started crawling a bit more

but still

in the wrong direction!

the youngman's surprise

now turned into discomfort.


he excused dr.alexander

put down the book

and popped out of the window!

the train was wriggling

in howrah's direction

and slowly gathering momentum!


the youngman's discomfort now changed to panic!

he picked up dr.alexander and his suitcase

and leaped towards the exit door.

the train had yet not picked pace

it was moving very slowly

and was well within

the very long platform.


"should i get out or

should i wait?

may be it is just trying to change direction!" he discussed with himself!

he waited...


the wriggling train

took mercy




picked some more pace!!!


"what's happening?

why is it going in howrah's direction?

kalka is that way?"

the youngman now started sweating!

the pace of the train was not much

and he could still easily deboard the train!

"but what if i am in the right train?

what if it is just going out of the station to change lane?

there are over a thousand others too in here!

all can't be wrong!"

and then

the train


with a jerk

picked more pace!!!!


the youngman

now knew something needed to be done fast!

the platform end was in sight!

he had to decide in a few seconds.

he could still jump off


" i should get off

and get ticket for any other train to chandigarh.

there are many going chandigarh way.

from there i can catch a bus to kalka easily." he thought

"but what about this ticket?

what about this money i have already spent?

what if this train were to turn back out of the station?

what if the train just returns from nizamuddin station? or from faridabad or mathura?

i can wait!

yes,i can wait!

yes, yes, i must wait!!

i should have patience!"


and with those thoughts

the platform ended!

the youngman felt something in his chest.

but he gathered himself

and dr.alexander

and went back to his berth!


the train gained pace

with a long hoot

which pierced the youngman's ears

and hit deep within!


faridabad came

the train didn't turn.

the youngman waited boldly!

mathura came

the train didn't turn

the youngman waited bravely!!


1-2-3-6-9 hours passed.

the train was now rushing towards west bengal!

the youngman had

by now

patched up with the reality!

"i had never been to west bengal. i have never seen the howrah bridge. god wants me to see all this! it's all god' wish! i can easily pay for this unplanned trip!"


t.t. came

the youngman

took out the ticket

and handed over!

"are you nuts! where are you going?"


"but the ticket is for kalka!"

"then, sir, why is the train moving this way?"

"where else should it go?" t.t. replied

"this was supposed to go to kalka" the youngman quipped back.

"that was the other kalka-howrah mail on the next platform. these two cross each other in new delhi everyday. you got into the wrong one! why didn't you drop down well within the extra-long platform? and why didn't you get down atleast on the next station? or next to next?"


the youngman had no answer!

he looked at dr.alexander

dr.alexander popped out of the book's cover

"you can't be a trader! stop bothering me."




and then


the alarm clock rudely pulled

the youngman

out of his dream

straight onto the platform

of morning!


he found himself sweating

on a winter morning!

"thank god!" he murmurred!

he quickly took out his trading diary

and wrote

"1. check thrice before you board the trade

2. if, by mistake, you still board the wrong trade, get off well within the long stoploss platforms.

3. don't wait for the wrong trade to turn back. just get off! there are many others leaving for your place!

4. if you miss the platform, atleast get down at the next station (lower high or higher low) and take the reverse ticket!

5. go and see the howrah bridge atleast once in life.......with planning!"

Wednesday, January 19, 2011

7 enemies,1 friend & 1 advisor of a day trader










1 friend



1 advisor




what is happening

is more important than

what should have happened


day trading is the only place

where being reactive

is more important than

being proactive!

Tuesday, January 18, 2011

swing trading vs day trading

(day trading + btst) x 5 days = swing trading

if you take a long position for swing trading

and market falls

will you intervene?

if you don't

(saying it is swing trading and not day trading)

your account bleeds!

and if you intervene

you are not swing trading

you are day trading.

moral of the story

= there is nothing called swing trading in strict sense

every trading is a superset or subset of day trading.

otherwise it is just a fell-good excuse

for not monitoring

or not being able to monitor

market regularly!

how to overcome your sunsign in trading?

just follow a method.

a method has no date of birth

and hence no zodiac sign

and hence no limitations by birth!

incorporate that method with the strengths of all sun-signs


let that method trade on your behalf!

you will be a great trader!!


pl remember

as Osho says

"being aware of your limitations

is the beginning of freedom from it!"

understanding PISCES traders!


those born between

february 19 – march 20

unassuming = natural trend following ability like the aquarians

very knowledgeadble = icebergs of knowledgeable trader community, will share happily if you ask them

extremely low profile = silent traders

overcautious = enter and exit traders rather late,miss rallies

gullible = easy targets of market manipulators, need to be conscious and cautious

generous = don't hesitate to book loss, don't hesitate to let profit slip

winners despite difficulties = fall in traps but their natural abilities rescue them

intense determination = fast learners, remember lessons life long

passionate = can't leave trading once get the taste of it

understanding AQUARIOUS traders!


those born between

january 20 – february 18

simple and unassuming = natural trend followers, give weightage to what is in front of them

silent achievers = likely to figure in all lists of achievers somewhere above the middle and below the top!

unorthodox = do things differently including trading but are surprisingly effective

honest = accept losses with grace, honour stop loss without much difficulty

loyal = to their method

highly intelligent = good knack of understanding what market is trying to do!

easy going and make natural friendships = are there in this list too, but not much demanding

prone to laziness = casual laid back approach despite knowing it all is their concern!

artistic and poetic = can handle market stress easily!

Monday, January 17, 2011

understanding SAGITTARIUS traders!


those born between

november 22 – December 21

philosopher = take trade seriously, profits non-seriously and losses lightly!

great ability for focus = great achievers, almost effortlessly

very intense = love trading more than the results

impatient = restless traders who want to touch the sky overnight! fear wearing out or burning out too fast! must control and channel their trading energy!

expect quick results = are bad investors but natural scalpers!

strong fighters = when pushed against wall, can carve the most impressive trading successes!

lack of commitment = have poor methods, weak discipline and casual mindset - major hinderances to big-time success!

understanding CAPRICORN traders!


those born between

december 22 – january 19

philosophical = mentally adjust to changing situations fast

highly intelligent = make smart traders, apply their knowledge to perfection

love stability and order = make sure that they control their trades and trades don't control them

good organizers = manage their trades and money very well

purposeful, systematic = most methodical traders

intuitive = with experience develop superb knack of identifying opportunities and threats to
perfection but generally don’t share it with others freely!

hate opposition or criticism = are highly individualist traders

shrug off negative comments = self-made, self-propelled, self-motivated traders .

patient and persevering = capable of playing long trading innings thru tough situations

responsible = bear full responsibility and answerability towards all good as well as bad trades

individualists = don't share their trading dilemmas with anyone. believe in finding their own solutions to their problems.

understanding LIBRAN traders!


those born between

september 23 – october 22

seek balance = often take too much of time to decide going in and coming out of a trade; keep weighing pros and cons

love justice = go after a bad trade to "do justice" and to get back the loss. feel guilty about profit and become careless till they lose the profit and balance it all!

value stability = are terribly uncomfortable at unreasonable market behaviours; are not natural

appreciate harmony and beauty = hate market tricks and manipulations, often surrender to market
forces to seek and grab harmony

go to extremes = when they are fed up, they momentary lose their sense of balance and they retaliate, often to their own peril

very understanding, caring = even for those who take their money; prefer being tagged a 'gentleman' even at the cost of losing

intuitive = with experience their sense of trade is killer!

quiet and shy = they often let opportunities slip.

excellent debaters = excellent in theory, weak in practical

understanding CANCERIAN traders!


those born between

june 21 – july 22

love home-life, family and domestic settings = have easy go happy trading style, not very demanding, peace of mind and routine are more important!

traditionalists = stick to time tested principles and are never without returns!

operate on a fundamental level = do what is right, whatever the result

love history = they don't forget experiences, have rich database of trades gone right and wrong

contradictory = have the habit of surprising self and others by trading opposite to what they know should be done! moody traders!

hide their mood = don't share their trade or reason behind the trades, don't reveal their opinion, difficult to know how they will act in the trade

conservative = are not open to new methods and ideas, make good investors but over stay in the stock!

unstable = can't stay in a trade for long; win small, lose small; are one of the first to react to any situation

loyal = love trading, love the market, are nostalgic about stocks! can hold on to stocks till they sink despite being aware of this!

loners = trade on their own, don't like to take advise or tips, do what they want to do

retreat on their terms = often get what they want even at the wrong cost!

understanding VIRGO traders!


august 23 – september 22

keen minds = welcome any trading idea

charmers = have the ability to convince others (and self) to trade in a suicidal trading position

inquisitive = generally don't trade till every question is answered. often get late in the trade! and late to get out of it!!

skilled at information gathering = they generally have the right answer to any trading situation, but unfortunately not timely

naturally intuitive = once experienced, are deadly intuitive about trading outcomes!

remarkable memories = rarely forget a mistake

analytical = are thorough in analysing the trade (often get late!) but make great investors!

short-tempered, impatient = enough to undo the good trading qualities!

excellent teammates = share trades with everyone (and results too!)

freely express their opinions (even when unwarranted) = are great opinion makers. beware of them!

understanding TAURUS traders!


those born between

april 20 – may 20

strong = natural talent to withstand market shakeups!

stamina = are the last to book profit (and unfortuately also in booking loss)

will = keep trying till they succeed

stubborn = worst performers as far as honouring stop loss is concerned unless ofcourse if they have the will!

good business sense = good trading sense often overshadowed by other personality traits

friendly and generous = including friendly and generous to loss

understanding SCORPIO traders!


those born between

october 23 – november 21

bold = don't hesitate to trade in troubled waters

cool, control = have natural talent to survive tense trading situations

unshakable focus = never trade casually

secretive = generally don't share their trade, atleast not the crucial parameters

vigilant = don't miss any important market move

involved = can't stay away from the market, thus resulting in overtrade and wrong trades despite knowing it!

powerful sting = profit big, frequently

see opposition as healthy = respect the trend, honour stop loss, admit their trading mistake

understanding GEMINI traders!


those born between

may 21 - June 20

gemini traders are

flexible, balanced and adaptable = and hence have the natural talent to go with the trend!

fast learners = and hence understand newer situations faster and better

prone to mood swings = and hence, at times, are unable to implement what they know!

affectionate and charismatic - and hence share things, inspire others

self-motivated = can take counter-trend positions effortlessly

drive hard bargains = and hence time the trade quite good!

understanding LEO traders!


those born between

July 23 – August 22

born leaders = are into trends quite early!

strong opinions = trade with confidence

good analytical skills = have natural talent to understand trading situations

execute judgment swiftly = take positions in a flash

brave = can withstand market fluctuations

intuitive = if experienced, are great in sensing opportunities and dangers

sensitive = react strongly to their mistakes

understanding ARIES traders!


those born between

March 21 – April 19

Aries traders are

creative, adaptive, and insightful = and hence have a lot of trading ideas (even where none exist!)

strong-willed = and hence sink deeper into loss without honouring stop loss, expecting a recovery; but can also easily hold on to winning positions till they turn bad!

spontaneous & impatient = and hence jump into trades and hence.........traps

very ambitious = and hence take bigger risks and more often

quick to anger = and hence ideal victims of big pockets!

excellent sense of humor = and hence are able to overcome the setbacks and return for more!!!

devoted friends = and hence never leave the markets

identifying a trader among the investors

lets admit it


if not all traders

are into stock trading

not just for money



also for the thrill


and kick

we drive out of trading!

the day we don't trade

or don't get the chance to trade

we feel so uncomfortable!

that is probably

the reason

we make trading opportunities

where none exist!

that is also a probable reason

why we



we can't extract the same thrill

from investing

or swing trading

where waiting is substantial.


we can't wait

if we keep looking at the score!


that is why

majority traders are mentally

not best suited

to be investors!

and there is nothing wrong about it,

it is ok!!!


it is not a co-incidence

that i rarely see

a serious trader

who has the habit of drinking!

i can immediately tell

whether the person in the stock market

is a trader or an investor

by just asking one thing

"are you a teetotaler?"

if he is one

i know i am talking to a trader.

if not

then either he is an investor

or he is into an exciting co-occupation

or he is broke

or he is gonnabe...shortly!


trading and drinking

are clear signs

of a sinking ship!


investing is either for the rich

who have surplus money

and who are in no hurry

to listen to the daily ringing of coins

in the money box!


it is for those traders

who are already getting

the adrenalin pumped

from other sources

and are into trading

only for money!


trading is one of the biggest


and motivating

and boosting


or passtime

in th world!

it can delay the suicide plans

of a rich guy!

besides bringing the dead souls back!!!


not just the spirit

you will rarely see traders using

or frequently changing


and gadgets

and other costly habits!

they get all the requisite joy

from trading

leaving these toys and lifestyle

to the broke or to the rich investors.


(note : i am a teetotaler and strongly recommend the same!)

Sunday, January 16, 2011

best stocks for investing and trading

for investing

large caps are dangerous = many will not be the tops in next 5-10 years and slump

mid caps are the least dangerous = many are likely to become large caps in next 5-10 years

small caps are the most dangerous = many are likely to vanish in next 5-10 years


for trading

mid caps are dangerous = these can fluctuate a lot even in short term

large caps are the least dangerous = they are least likely to fluctuate big in short term. if they do, they are likely to recover if fundamentals are intact.

small caps are most dangerous = these can fluctuate wildly including in circuit locks


caution : only companies with decent corporate governance are being talked here. rest are not worthy of touching except when gambling is acceptable!