the sleepless trader

 looking at sgx-nifty (after market closure, late evenings, overnight, early morning) so restlessly, anxiously, and obsessively indicates that

- we don't have a method or are not relaxed with it

- we don't have a strategy and a backup plan

- we don't trade probabilities with a system

- we don't have money management

- we are in a hurry

- we don't have the appetite for loss

- we are fearful and hence won't have the appetite for profit also

fill, it shut it, forget it....

 best stock master approach i have understood over the time is

fill it (understand it wrt the evolved system)

shut it (take the trade)

forget it (don't bother till the SL based on same criteria as taken, holds)

... get off the hero honda spendor 10meters before the destination as indicated by the map (system)

by the way, here is that classic ad with iconic line, for nostalgia sake

https://www.youtube.com/watch?v=xQcZVDTjAis

importance of a trading system

only a system can tell you when to enter and when to exit. more evolved a system, more the accuracy. rest all entry-exit are psychological

akin to soft tingling gambling

you eventually feel good of your systematic trade goes wrong. you eventually feel terrible when your casual trade goes wrong. both of these are temporary. system-based teasers will eventually start falling in place, casual ones always remain at the beginning sinking you gradually

a penny of system-driven profit is much more precious than a dollar of a fluke. the former is a seed carrying many trees, the latter black hole

markets are casinos for those who trade without a system

and a self-employment/business for those who trade on some basis/logic/system. without consistency promise there cannot be any sustained profit in any business

better be system poor than systematically poor

once there was a pigeon...

like many budding struggling traders, i used to be a pigeon who would flutter away at every and any small anti-trend clap.

all kind of brave talk used to fail miserably despite my best efforts.

over a period of time a series of chance system adjustments revealed how the bluff moves of price can be spotted/segregated.

till then i always used to book too soon out of fear of losing the illusive profit.

i can't explain how frustrated i was when i was unable to run long distance trends whenever there was one.

the fact that i, like majority struggling traders, was booking loss too late in the trades gone wrong, was adding salt to my wounds.

i can't express my satisfaction (wouldn't mind calling it happiness if it were not already not-a-big-thing-anymore) having crossed that choking waterfall of a challenge.

i'm on the other side now.

it was a small step of improvement but with giant consequences.

if u look at the corollary of this, u'll notice that this improvement in system also helped me dropping the wrong side fast enough and thus cutting losing trades sooner than later.

with passing time and practice, even the remaining fear will be gone (i am, like a typical "doodh ka jala", still looking for the ways my system will fail some day in a new way!!!).

but i'm reasonably sure that while the newer situations will keep arising, leading to sneezes and hiccups in my system, the hits will be smaller hopefully and i'll use even those instances to further improve my trading system.

taming the fear is at fairly advanced level.

the skin of my trading mind is quite thick by now.

=====

my next challenge was/is....scaling up.

i have said and written at various places in the last many years that i had decided not to trade REAL BIG size till i had developed the system fairly well...... till the system was fairly stabilized and had proved itself respectfully in various conditions and seasons.

my view always has been that jacking up the stakes and getting big returns never takes too much of time. but it doesn't happen till the "multiplication factor" system is in place.

otherwise, the buggy system is equally good in bleeding u real fast.

so, after having fairly stabilized the trading system, my next aim is to jack up the stakes. easier said than done.

it is like venturing into a new territory with many unknowns.

gradually working on this in steps these days. and at no point, without safety harness......

a system with a veto

amplified emotions are fractures in psychological strength of a trader....

don't be too sad - it will hurt ur ability to survive the difficult times, 

don't be too happy - it will have a bearing on ur ability to stay alert......

=============

have a target....no harm in that....but never be adamant. 

be flexible. go with the flow. 

i have a lot of opinions and targets and views. some are v strong. but i give veto power to the system. 

though my system and my views concur for good part, there are often divergence which are beyond my comprehension. 

in those times, i go my system way, often to be amazed!!!

=============

human trading is inseparable from emotions. 

emotions are subject to virus attacks. 

a pre-determined evolved trading system is too primitive to be effected by the emotions and hence fairly advanced in the market which doesn't know how to counter simplicity.....

near, yet far!!!

there are 4 phases of market:

1. near dead heartbeat volatility
= fails, suffocates and frustrates any and every method.

2. range bound (but alive)
= boring and ultimately makes either makes u impatient or doze off just before the take off time

3. trending
= those rare sunny days when u can play. alas, u blunder, courtesy hangover of above two phases or the next one.

4. giant trend
= unbelievable, without warning, ridiculous, one way sudden move which catches u unawares. u r too late, shaken and unsure when u finally enter. what i gain is peanuts in front of what u miss. when the tide is gone, u propel ur arms but there is no sea to swim by then!

a trader who can find a way to not only identify (to whatever extent possible) the above phases (or atleast devise a way to reasonably profit while incurring minimum unavoidable damages) can only hope to make some money consistently.

add to this the dilemma that of having a technical (or other) template to predict the turning points of the trend reasonably accurately, that u begin to realize the enormity of the seemingly sweet butch game called trading.

add to all this, the deliberate illogical games operators play

and the inherent uncertainties of the global events!!!

the earlier u accept the reality, the better......

quite a few of my hair have turned silver trying to crack the code and weave it into a practical compromise strategy......

how near am I !

yet how far!!!

if u see the 4 phases i mentioned above and multiply it with the uncertainty gaming factor, u realize that u r playing 5 in 1 games which are being randomly switched!!!

the real bluff...

i am, frankly and genuinely though, v uncomfortable with this spike (today and yesterday).

long long ago, i used to divide rises of three types.....climbs, spike, shift...depending upon the angle of rise and the magnitude.

while climbs were reasonably stable, spikes were fragile and shifts (vertical ones) were rock solid. i even wrote an article on it*.

current one seems like a shift. options data also bullish. but the down rally was just half over. i was and am perplexed. but i, fortunately, always kept room for surprises/adjustments in my system.

there was no real surprise worth its salt in the past many months since i am on this version of the system, as u are witness to, but this one is.....going by the sheer magnitude and the time it took.

this may well turn out to be a non-event bluff in line with what i was expecting till noon today (49% down rally was left) but if may well turn out to be one of those occasional "re-calibration" "real bluffs".......





*http://thebestbusinessintheworld.blogspot.in/2010/02/climb-spike-and-shift-day-trading.html

Stay at the wicket, have a heart

dear friends, i want to share a very important thing....a learning for me...a lesson.....

here is it...

someone might recall that on 2nd feb i was still long (around 7550spot) as i had not got the down rally signal and the rally, as per me, was 95% approx done)......

just then the market fell sharply around 100 points and i had to forego some of the profit of the remaining long lots

at that time, i prematurely (under pressure and shaken by the sudden fall) turned short at around 7400 approx...

at that time anyone could have said that i missed the meat of the downfall (more than 100 points missed!)......even i, for once thought that way.....

but i found the downside rally signal only above 7400 and added shorts at 7475 spot.....

despite losing heart at missing that 100 plus point drop on 2nd.....i still garnered 500plus points in next 4 days in the subsequent rally......

my point is, that despite a big adverse shock of some 100-150 points, still i won the game for myself......thereby giving me the lesson that just because u have lost seemingly big thing doesn't mean nothing is left.....in the larger picture that big thing may be quite small.....be in the game.....

lemme illustrate with two self explanatory graphs

this is what the situation looked like after 2nd evening......it was natural to feel damn bad and lose heart.......

ashokji: That is were I got confused Js ji..I was long too...turning back to 7475 was deceptive......

Js: and this what it looks like today EoD

moral and lesson of the story.....if u stay at the wicket and overcome a close call.....u can still hit a century or double......

when u r worried at a situation, always remember u will be pleasantly shocked from a distant view/angle.....

had i refused to short after that nasty fall of 2nd feb, thinking that meat of the fall is over and i have missed it, gues what would have i missed!!!

this is one of the reason why i shorted near closing today as well after i found myself left with just 1 bullet in my revolver.....with battle just less than half over

who knows what the graph may look like in 1-2 days!!!

sonti: Js ji, tomorrow also gap down?

Js: don't know.....but what if it does? "am i placed right for it" was the question before me.....when i know that the rally is far from over, i am assured that i will get back my today's bet within a few days even if it were to shoot up tomorrow.......when it is draw-win situation, why shouldn't a trader take that sitter!!!

sgx is already indicating 6918......

it may or may not sustain....but that is not the point....the point is buying a heater in mid summer may look cool but is not positive trading.......

operators are mavericks and only maverick traders can be spared the bullet....self talk

and trader masses are still not crying....and begging will still be left....

1022‬: श्री जगमोहनजी , कितने सुन्दर ढंग और तर्क के साथ आपने बात को रखा है। जो कि एकदम सही है। एक 100 पॉइंट की गलती 500 पॉइंट का सही कदम दिखा सकती है। गज़ब

Js: शुक्रिया विष्णु जी....

william % r is not down but buried!!! it will need some external help to come out before standing!!!

any extreme value of rsi, william is not a natural rebound especially when it is in that value range since some time.....

: 90% plus william that too pro-trend is a falling sword (not just a falling knife).....

: besides william is a dog alone...and with rsi it becomes a wolf.......

: look at rsi on 1 month chart...it is 2.18

: that's hell....from where it takes time to return

: as is often said.....most of the rallies happen in oversold and overbought zone.....

: sgx is now recovering.....but that's again not the point...morning is another day

: everyone knows that rebound is around the corner....and that's precisely the reason why it is not...imo

: it's a GAME!!!

: it will rebound....but without the majority......

: treachery is the word...

: operators are extremists....no extremes are too much for them.....

a case for a written trading system

All irrelevant thoughts vanish the moment we have a trading system.

every trader should have a written system which he should keep improving changing adding subtracting

If our opinion doesn't tally with that of the system, either we or the system need to align. I would love if we mostly talk with system here

instead of saying"i think....", we should be saying "my system says. ...."

just a thought. ..

habits don't let a trader change who doesn't have a system

Shame induces us to fear and sin. - Jewish quote

trader with a system and the will to continuously keep improving it should be shameless.

I'm having a written system since a decade. I laugh at the earlier versions. and soon thereafter I say sorry for my laughter when I realise that those initial versions led me to the current one

why not?

one of my friends just asked me...if while going up from 7191, 7060 plus minus is so evident....which is a good 150 points down...why don't u go short for it??.........

my answer (just to share with allfrienfriends)

One, because I avoid anti trend trade.

Second, it is not for sure.

Third, if it does dip to that I can buy double to gain as much as it comes up again

zen and the art of stock trading (a whatsapp chat) (oct 15)

 Js : Imo, we are in sell on rise bearish positional stage. around half rally over from time span pov, not magnitude...

Sanket Netherlands: JS Ji couldn't get it...

Js: on 2nd dec, i had shared my opinion that rally is over, yellow for down market. i expected the down rally to start one two days later. but, to my somewhat surprise, it started immediately and with a bang. my understanding is that whenever the rally reverses sharply like this and with the options spread as that on 2nd dec, it indicates the start of a range......

Js: presently we are, technically, in a down trend. but if we club it with the above mentioned opinion that range is likely to be maintained, i expect volatility. i couldn't take shorts then. i won't now. i expect a sharp move up in a few days. that can be loosely said...dead cat bounce also. but that won't be the start of up trend which seems a few days away....probably mid of next week.....hope i have not left u confused...if so, would like to clarify....

Sanket Netherlands: Crystal clear view

prakashji: absolutely clear

Js: over the years, i have realised that it is difficult and exhausting to try and catch both sides of the trade....both buying and selling side....especially in positional trading......and nothing wrong if u don't punish yourself for that....

Js: i love to take rest for some days when i miss the bus instead of running after it

: i don't fear when i am on the sidelines...and this helps in spotting and learning the games markets play

: recently i have brought some change in my trades.....

: not in terms of the method or system but the instruments...

: the change was basically brought in to counter the loss of premium (in options) during range bound days.

: now a days, i use the same method/system.....and when the system says "buy", instead of shopping for nifty options, i buy stocks in "cash n carry".....amount almost same as the exposure value of nifty options.......

: this way, i am no longer losing premium when market doesn't move for many range days which i fail to foresee (probably no one can)

: and how do i choose those stocks?

: well, primarily good a and b group stocks plus the ones which my broker hdfc securities keeps spamming me....

: when i get the "buy" signal, i open the charts of all these candidate stocks and shortlist the ones which have fallen the most and fallen the least during the down move. i distribute my entire "dollar brigade" 50-50 in both these camps.....

: eg. recently i chose idea and sbi.....on 19th...among other stocks....

: sbi because it had fallen the least from 13 oct to 18 nov and idea because it had fallen the most

: idea gave me around 7% and sbi 5%+.....more than the market

: i took all out on 2nd afternoon....expecting down trend in 1-2 days but it crashed within hours....

: i'm not complaining though

+91 xxxxx xx331: Based on this u say when up move comes - the stock which has fallen most should give decent returns and the stock which has not fallen much should reach higher highs. sir ji - IMO trick here is choosing the stocks

Js : yes, sandeep, one half the trick is finding right time to buy

: and the other half is picking the stocks

Xxxxx xx331: Please do share these sort of things - it is really interesting to analyse and fun too

Js: i'm not bothering about sbi NOW shishirji......because this round was over on 2nd dec....now, when the new buy signal comes, i will fish/shortlist/hunt for stocks for that ride afresh as per the criteria i shared above

Js: no permanent friendship or animosity with any stock....just pure logic/opportunism

: shorting i do only with nifty puts....unfortunately/incidentally i didn't get opportunity this time (on 2nd dec)

: no stop loss in stocks....

: whats the harm in holding a good stock even otherwise

xxxxx xx577: Means if u find nifty weak and feels downside than u will not trade stocks and.will do in puts

Js: yes

: up=stocks, down=puts

: idea was moving even when nifty wasn't.....

: and nifty exit signal emerged much earlier than those in the charts of these stocks....

Xxxxx xx577: U might face same problem what u face in calls   I mean eating premium😇

Js : bessides, going by the elliot wave logic, falls are 3 times faster and for 3 times lesser duration than rise. so buying puts is safer than buying calls on respective sides. because puts premium erosion is much slower, as it happens faster and u r in for lesser time

MM: Safe method if nifty will go up most stocks will go up 👍🏻

Xxxxx xx331: Pretty good strategy sir ji

MM: And good logic for nifty options

Js: from 19nov to 2 dec, it took 8 days to climb 200 points, but it took just 3-4 days to loose that all from 2 dec to 4-5dec

MM: True

Js: yes....but the beta has to be positive.....i.e. the stocks which move in nity's direction....

: eg i will not risk IT stocks, Oil and Gas Stocks, FMCG

Xxxxx xx577: Only bank stocks most of times. Like sbi axis hdfc

Js: yes, banks are safest...beta is high

: but u have to peep out of the banking window to locate stocks which yield max swing during up moves...

Xxxxx xx331: JS JI - u meant beta should be correlated with Nifty movement

Js: yes...... i still remember a statement by shankar sharma that while ADAG group stocks are not the best fundamentally, they make superb trading stocks because of their big moves

: experience tells us which stocks move in tandem with nifty more often.....any doubts, u can do backtesting for any particular stocks

: airline stocks are also good trading bets, though risky investments

: same about sugar stocks

: these are badmaash shareef stocks....from trading pov

: historically, i have made more money trading in stocks than trading in nifty

Js: however, nifty is easier to predict than stocks.....many reasons for that

: not a bad idea to use indicators/system/method to predict nifty and then use the nifty indication to trrade stocks

: don't want leverage tension

: i prefer buying sbi stock for a few years than putting the same money in the same bank for the same period in savings account

: that, in my opinion and understanding, is the essence of investing

: in trading, if u r not in hurry, u reach early....self talk

: in trading learning never stops....self talk

: what we call learning, is infact, continuous adaptation to newer/changing/emerging realities....self talk

: positional trading is so slow and boring that i have nothing to share for days at a stretch...frankly

deepak: IMO ...EUREKA of a chat....  these are bonus chats.....Thanks Jagmohanji.... ( Sandeep for anchoring it to perfection )

Js: buying opportunity comes 1-2 times every month (positionally), on an average, speaking from my experience....js

: in a way, i like it.....as it gives me a lot of time to live "the life"

: most of the times, i (am happy to) see situations/developments in the market passing by my positional tra(in)de...

: long ago i read the book "zen and the art of motorcycle maintenance".......

: it could easily have been "zen and the art of stock market trading"

: sometimes, i ponder that i may not retire richer from the stock market in terms of money but definitely a multimillionaire in terms of "life" i learnt/earned in the process

Xxxxx xx331: Truly agree

Js: if trading is changing u for good, u r trading right!!!

: even if u r losing some money

Xxxxx xx331: But in that process u become rich - hehehehe

Js: i will just stick to the method shared above irrespective of whether it is sbi or

: abi, bbi, cbi, dbi or.....sbi......as long as it is a group a or b "good" stock

: i am anyway going to forgive and forget any particular stock once one cycle/wave is over...

: u r , though , right in asking about sbi from probably medium to longer pov, for which i'm not the right guy to ask

losing the easiest gamble

how about a gamble/lottery with your 50% chance of winning?

welcome to trading....

but if u r still losing
the fault doesn't lie with your chances of winning.....
the trouble is...

1. lack of a method (any fixed method will do.....and I can prove it)

2. risk management.(an adverse trade shouldn't unsettle or financial position)

3. changing directions to much....mixing intraday and positional trades
too much

4. inability to stick to system.inability to be the odd man out

5. letting fear and boredom create havoc in the head leading to trade suicide

6. playing ass to be the jack who hits jackpot every time
man in a hurry to be a millionaire immediately to overcome all other ills and misfortunes of life

7. fear and inability to take the difficult trade (profitable trade is mostly equivalent to biting the bullet, uncomfortable, seemingly stupid, against the masses."how can the masses be wrong and me right"fallacy. sheepish approval seeking behavior.

8. expecting and demanding guarantee before entering the trade that the trade will be profitable. peer and masses consensus give the illusion of that false guarantee with obvious results.

9. hoping endlessly but not accepting the cause and effect reality.keep gambling but refusing to change the trades and process behind them.

Essential traits of an effective trading system

The essential traits of an effective trading system....
1.it is cast in cement....meaning thereby that it's functional conditions like entry exit are fixed
2.it has a smart operating technical our tactical edge
3.it has to be repeated to show effect in the long run.
4.and for this to happen you have to have right trading size with with buffer funds plus strong nerves

refuse to fiddle

market can either go up or go down.....
this makes it 50-50 chance for winning for anybody.....
yes....anybody...!!!

then why does everybody....yes.....almost everybody loses 80-90% of the times?

doesn't it sound amusing, if not outrightly absurd?

any idea why it happens that way?

despite that much of advancement in the technical indicators, expert fundamental advise, scores of business channels, tonnes of research and countless trainings!!!

well, in my opinion the culprit, in one word is,

"fiddling"

the more you know, the more u r anxious, the more u r greedy, the more u r fearful, the more u r emotional...............the more u r nervous and unsure and full of doubt.

coupled with the noise all around and the fear of financial loss, u r always a perfect pigeon to fly at every clap.

"fiddling......yes fiddling"

when u r right...u fiddle and chicken out...

when u r wrong...u fiddle until it becomes highly stressful and breaks...

the pinnacle of learning in trading is......unlearning!!!

i have seen traders learn learn learn....

though that is not wrong....rather a must, they forget to complete the studies which requires the trader to unlearn what their accumulated wisdom points out as "wrong, fake info"

this leads him/her to a filtered, evolved, distilled simple method which is carved by the chisel of improvement with losses arising because of  "refusal to fiddle"....

self talk: 

market is a tiger (who can surely eat you alive).....but a blind one.....a deaf one.....the one with non functional nose.....he can't even smell you around!!! 

he just can't spot u till u move or come in his way!!!

good enough?

thanks a lot K for ur kind words and feedback!!!

i have heard about india vix but couldn't/didn't learn it for the same reason that a science student avoids commerce classes.

there are, i think, many alternate ways to tame the market.

i was fascinated by rsi, william %r, sma and tactics.

​​

so i spent a hell lot of time in just specializing in these. any other indicator and parameter would have required another life and hence not immediately required. had these parameters i chose failed me, i would have continued my search for more.

i always felt, that any indicator is good enough to win in the market provided we are good enough in that indicator.

regards

Jagmohan

On 6 September 2014 19:53, K wrote:

Hello JS Sir,

Just read your blog!!!

Nicely Written, easy to understand language.

The only thing that I did wrong was, I started to read it from 2014 instead of 2010.So I re-read the blog again :)

Well, Just want to know your thought on this, you have given lot of parameters & indicators to help understand the Buying & Exit points, I would like to understand if you have ever considered using the INDIA VIX for assessing the entry & exit points or atleast to gauge the upmoves or down moves in the market.

As per my understanding, India Vix is the sentiment of the crowd for next 30 days, could that be used as an indicator anyhow to gauge the value of Nifty or Bank Nifty.

Your thoughts & suggestions are welcome!!!

--

K

trade like u will play a video game

dear arun
every word u have written here is 101% right
find ur own method as u said
and, i can certify that atleast one exists for everyone willing to hunt for it
i feel from ur words that u r on right track
u will be alone in this
and might have to bear sweat, tears and blood on the way
just like those attempting everest (i have read a few biographies of them)
but it will be worth it.
victory is assured
instead of day trading i suggest swing trading
7-8 points per day is too stressful
5 wins will be crushed by one erroneous trade
go and find a method for swing trading
master it like a video game
not like a trade
as i always say
people are playing on technical levels
and getting beaten on tactical ones
regards
jagmohan





On 3 March 2014 05:35, Arun wrote:

Sir
How are you ??

I have told u that i have found method to earn 200-250 points nifty per month. But i am quiting that one.

Advantages:
1) 7-10% income generation surely monthly.

Disadvantages:
1) Always i have to see charts live from 9:15 to 3:30pm.

2) Always  to be in position, long nd short, not in free zone any time.

Its not only gives stress, also it makes me bored within some days, creates confusions itself, also diffuses my passion to see lines, indicators all the time on pc.

...................................................

- Now i am looking for some intraday method. I want only 7-8 points per day, not more than that.
If you have some tactics to earn 7-8 points a day, then disclose with me.

- New methods on which i start learning BTST, Pair trading.
Also i have read your blog on BTST, but you are not suggesting STBT.

I want to trade methods without indicators, Because i think if its possible to earn alot through indicators, then all IIT'ians would be billionaries, as they chew the mathematical formula for an eye blink.

It's a DABBA game..make your own desi rules, not to follow angreji strategies.

Thanks sir..

-
With Regards,
Arun

surviving "heavy loss" phobia

4 things that can help u protect yourself from crippling effects of "heavy loss-phobia"

a. sound trading system which goes right around 7 times out of 10 and has well defined point (call it stoploss or SAR) where it auto signals reversal.

b. psychological strength to stick to the method.

c. enough buffer funds to keep you going in case of those 3 odd failures or unforeseen situations including circuits.

d. continuously improving the trading system.

e. not trading your own trades. asking someone to trigger those on your behalf so that you are psychologically free to focus on trade signals without bias. not counting lost pennies everytime of those 3 out of 10 trades.

how and from where i learnt options

( in answer to a question)

see, i just studied options in a simple way. 

i learnt the basics from various websites thrown up by googl e.  first i learnt the basics from there and then i tried to learn strangle, straddle etc. but soon i realized that those advanced combinations are for deep pocket fii/dii/hni's....besides being complicated and risky.......and foolhardy. 

then i realized that even plain options are very powerful if only one's fundamental method is strong and well developed. so, i just focused on and learnt the basics of options thoroughly. i learnt their behaviour by continuously monitoring them in different situations. 

i realized that learning a tool very very thoroughly revealed powers of it which are much potent than the complicated combinations of the same. 

complicated strategies are only an alibi for lack of a sound basic method.

....and all this i learnt using my own head....with a lot of trial and error and hell lot of practice using just the fundamentals of the idea/concept behind "options".

and while i was on this grand exciting journey or reinventing the wheel of options, i came up with some original and powerful new ideas, tactics, strategies and insights.

fundamentals of anything has the seed of all advanced greenshoots. 

i tried many websites and a few ebooks on options but all seemed to confuse me beyond the basics. just like you can catch the truth behind a person from his body language, you can see thru a book from its word-language.......and these books were definitely lacking "self-confidence" and conviction about what they were preaching. and all were the same as far as the basics were concerned.

best wishes

operator truths every trader should know

- in day trading or short-term trading 1-2% people make the other 98% play.

- they know things beforehand....amazing....but not for them...call it insider information or whatever.....they bloody know all the crucial info....in toto...!!!

- they have got super powerful computers, software and networks (highly guarded with access denied to outside the coterie). they have links and access inside not only one or two but all the principal companies of all sectors across countries across continents. afterall, the money is one only....you can trace the roots of almost all the money to a handful of banks and entities.

- they have got practically unlimited money at almost zero interest! (how about that facility)? actually, they are the insiders, everyone else on the planet is the outsider!

- they don't worry about developments and news. they know the developments and news beforehand. many of them, they shape themselves. those which they don't know or can't influence don't effect them much. do you think governments anywhere can take any decision which is contra to their interests?

- businesses are as much as for the profit from the manipulation of stocks than from the profit from the primary production and distribution.

- operators don't buy options, they only sell (write) them.

- they don't choose which options to sell. they sell any option and as many of them which retail traders are willing to buy. only thing they control is the premium. they put much higher premium in the direction they don't want to go. this way they control the volumes in a particular direction.

- operators don't decide on the time of squaring the option. that is decided by the retail operators who bought it. they square the option and as many of them which the retail operators wish to square off. again, the only thing operators control is the premium at the time of squaring off. they put higher premium on the side which gives less benefit to the retail operator.

- the money is made by the operator not at the end of the series but continuously and non-stop at every second of the trading day in every single trade....they keep making money drop by drop, second by second....it is a myth that operators make a killing in big shots.....they don't....they keep making money by bleeding non stop without much ado....just like rivers are formed by drop by drop melting of snow over vast stretches of glaciers.

- operators are there because retail traders are there and in that proportion. otherwise, operators would have been forced to work only as VCs (venture capitalists).

- operators control/move market in 4 ways
a) actively buying
b) actively selling
c) refusing to support buying
d) refusing to support selling

- when they want you to participate, they don't move the market fast. and when they don't want people to get on board and still want to change the levels/altitudes of the market, they move it very swiftly by controlling bid prices and accepted prices......obedient army of computer networks do that.

- it is extremely difficult and impractical for a retail trader to trader after considering all factors at play. they can't. even otherwise they will go mad doing that. they have to find a tactical and smart and clever indirect way.

- operators don't like smart, clever, stable, silent traders.

- never panic....fear switches off the mind which alone can take on the mighty operators.

- if you don't have your own knife and fork to trade, don't sit at the table.

cross acround the trader's neck

lessons so far from 10 experimental trades :

1. the criteria is ok / promising and needs tightening/refining. 

2. intraday alone is not enough...can never be enough.......what about rallies where movements mostly happen in gaps?

so, btst/stbt (overnight trades) is a must alongwith intraday trades to make decent money. otherwise, despite risk and stress, profits are likely to be proportionately less.

intend to start overnight trades also alongwith intraday ones w.e.f next week.

3. buy at or "somewhat" in the money options when less sure or when taking a trade against the trend (ofcourse at the signal of the method). and when reasonably sure or when taking pro-trend position, take deep in the money option.

4. deploy ur money in 2 stages....one after 10am (whenever signal comes as per the method), second around noon when the real "game" is played......will incorporate this in trades w.e.f next week hopefully.

5. use mutliple indicators / logic to identify market bluffs and traps.

6. use method and fixed-time fences to eliminate (or atleast minimise) the effect of dodging and mind games played by operators and market deep-pocket-forces. use 'law of averages' to your effect. expect wrong trades as per the method (they will always be there and are expected and ok) but never quit trading after the negative trade. i call these negative trades and not bad trades......no trade as per a method is a bad trade......a good method properly executed can still result in loss....it should be called a negative trade and not a bad trade........a negative trade is a probabilistic entity but not a routine one. the trouble is that we stop trading after a loss yielding trade taking it as a bad trade instead of a negative trade.........pick any method.....decide its parameters.......so ruthlessly that even a computer or robot can trade as per it.....and then stick to it......don't stop trading when you make profit......don't stop trading when you make loss........never abandon the method.......method is like a cross in the trader's neck.......lose it and the devil will get you.