not a club, pub or casino

take trading like a business, not like a lottery, gamble or luck and hope thing.

in trading, avoid adhocism as you would in a business.....

invest time effort mind money emotions in trading as you do would in a business

understand that you would have to establish the trading as any business....

just rhetoric, chest thumping, joking, fooling, bravado won't do

be a businessman

be in the business of sale purchase of stocks or indices

let results and consistency be the pins to your ego balloon

buy or sell stock or index like you would a flat or land or alike

build the trading business painstakingly

market is not a club or pub or casino

learn the tricks of this trade.....not to lose but profit

business is not entertainment, trading is not show business

amateur traders should avoid the inadvertent joy of being a reluctant stripper

don't enjoy your loss

trading,unfortunately,is the only trade which is not traded like a trade but spent like a hobby.....alas

reveal your profits and losses to your parents, spouse or siblings and see the casual approach evaporate

amateur traders keep avoiding slaps and keep hearing imaginary fake misplaced claps

trading is a difficult serious business....take it like one

maintain profit and loss account

ask self about the roi

keep an eye on expenses

do swot analyses

do frequent reality checks

take that slap....everyday after breakfast lunch and dinner

the trader who sold his ferrari

i have not read robin sharma's

famous best seller

"the monk who sold his ferrari",

but i just sold mine

- my technicals!

it took me 2 years

of focused

single-minded

fanatic-scale

effort

to study rsi and william%r

besides some other indicators

and tools

(albeit to a lesser extent).

despite all this

hearts of hearts

i knew that the market monster

was not tamed!

recently

i even went to the extent

of admitting that no technical

can crack the market code!

technicals help

but not we retail traders.

they help

market forces

to provide

endless supplies

of victims!

this led me to the door of

next search!

and with god's mercy

i got IT

much sooner than i had expected...

"just follow the market's direction"

no technicals

no indicators

no graphs

no computer

no analyses

no prediction

just dumb shameless remorseless

following!!!

(i have explained these in detail

in my posts of last week)

i tried the new methods

and i had to pinch myself

to believe the results!

--

and what a coincidence it is

when i see right before my eyes

a statement from

none other than

Alexander Davidson

"....technical analysis doesn't work except to a limited extent in short term trading situations"

--

though i was not a monk

but definitely a wandering trader!

though i had no ferrari

i definitely loved my rsi and william%r

more than a ferrari!

though i have not sold my "ferrari"

i just left it behind!!!

nip that pain in the bud!

pain of loss
is greater than
the pleasure of gain.
--
so when a trade goes wrong
which is often
especially for newcomers
and
loss appears on the screen
the new-bees are left with
only one way
to overcome
and avoid
the pain of loss
???
by not booking the loss
by not honouring the stop loss
....wishing the price
to turn
somehow
into the green
and become
a pleasure of gain!
--
obviously
this doesn't happen.
as a psychological miracle
the pain of loss
gradually turns into
the PLEASURE OF PAIN
and
the pleasure of pain
gradually turns into
the teasing
PAIN OF GAIN.

secret self talk of winner traders

* i am not playing 'not-to-lose'. i am playing to win. u can check it in my every decision.

* i am never the victim of the market. i am responsible for outcome of every trade. u can check it in my every reaction.

* i don't just want to be a successful trader. i am committed to be one. i have burnt the bridges behind.

* i must think 'big' and challenge every 'small' thought. u can cross-check it!

* i will thank the market for everything i gain, for that way market will give me more. i will
never criticise, condemn, complain, argue or curse the market.

* i will take trade decisions on the basis of possibilities of profit and not apprehensions of
loss. pl let me know if that's not the case.

* i must not expect reward without being ready for risk.

* i admire successful traders even though they are presently taking my money. i want to be one of them.

* rather than shirking and cursing, i will face and solve every problem that comes in the way of a winning trade.

* i am not seeking security or salary from the market. i am out for handsome big reward!

* i will not compromise on what all i want. pl remind me when i do.

* i will manage my money and not let it roam free.

* i will make my money work hard for me rather than sit idle and pretty.

* i will not allow fear to tame me. i will tame my fear and do what must be done.

how to win big!

"i have a strange problem." said the talented trader

"i am good at reading the charts

and technical analyses

but when the trade is going my way

and i am having decent profit on the screen

i chicken out

by booking profit prematurely!

I am unable to convert my wins into

real big ones!

this is really preventing me from making it big in stock trading!"

--

the veteran trader was listening patiently to the confession of a bright trader!

he realised that the young man's problem lay in his getting overwhelmed by the sight of the profit!

he remained silent for several minutes

and then suggested

"stop looking at the bank balance

stop looking at the amount of unrealised profit

imagine that you are not trading money

but trading points

or trading the chart lines!

imagine that you are playing a game of reading charts correctly!

let your broker take care of the accounting!"

capacity

the auditorium burst

with waves of thunderous applause

by the final year students

of a reputed management institute

hypnotized by the electrifying speech

of the legendary businessman

invited to deliver the annual address!

--

immediately thereafter

open-house question-and-answer session started.

--

question after question

was put forward

only to be immortalised by the answers of

the businessman-of-the-decade!

--

after almost an hour

there was time for just one more question

--

"how do you effortlessly manage to increase

the turnover of your business

year after year

even when the sector is reeling under slowdown pressure!"

a girl student asked!

--

"when i was a child"

replied the veteran business-legend after a brief pause

"i used to accompany my grandfather to the temple.

the priest used to give me very sweet 'parshad' in my tiny folded hands.

it was so tasty that it used to be my main reason for daily going to temple!

but i always felt bad that i used to get very less of it!

my sweets used to finish too quickly!

one day, the priest noticed my sad face

and asked me for the reason!

'why do you give me so less sweets' i askedhim

'because you have so small hands' the priest told me.

that night i couldn't sleep well past midnight!

that day i had got the most precious lesson of my life

which stayed with me ever since.

i have always reminded myself

that to have more and bigger 'prashad'

from destiny

you need to have bigger folded hands to receive more!

you get only what you can comfortably hold and manage!

you get only what you are psychologically ready for...

it's not about the market-size

it's all about the basket-size!

since that day

whenever i have to increase the turnover

all i have to do is

stretch my mental barriers of reality

revise my definition of possible-impossible

upgrade the scale of my blue-print...

and that is the only constraint that i have to struggle to increase.

once that is done

everything else just falls into place

and i get the desired growth!"

'the secret' in stock trading

you must have read

rhonda byrne's

"the secret"

the book that has become a phenomenon!

--

all it says is

"you attract things".

in the words of John Assaraf

"thoughts become things"

--

seems magical!

isn't it!

atleast that is what i first thought

when i first saw the movie

and read the book!

--

but

being a science student

i wanted some logic

to believe the law

and understand the philosophy!

--

recently

i got my logic

and i want to share it here!

--

to me

the law means

"what you are searching for

whether good or bad

positive or negative

your eyes locate

and mind recognises!

what you aren't looking for

you miss all!

even if it is right in front of you!"

--

let's understand this with an experiment

--

look at something which is at a distance of about 10 meters

from where you are sitting!

look at it carefully for 5 seconds.

now bring your left thumb

in the line of your eyes and that thing!

without moving your head or thumb

look at the thumb carefully!

--

while looking at the thumb

can you see the details of the thing 10meters away?

obviously, not.

--

now without moving the thumb

can you focus at the distant thing?

yes, you can!

but while focusing on the distant thing

can you see the details of your thumb?

again, you can't!

--

that is why

"what you are searching for

whether good or bad

positive or negative

your eyes locate

and mind recognises!

what you aren't looking for

you miss all!

even if it is right in front of you!"

--

this way

"we attract our destiny and everything on the way!"

and

"thoughts become things"

--

now,

using this law

can we attract profit

in stock market?

also,

if we are attracting loss as of now

what are we focusing at?

what's in our thoughts?

--

i leave the answers on you!

one way to move forward despite losses

one way

to stand up

once more

and

move forward

despite losses....

...

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...

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...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

forgive yourself

for the trading mistakes!

why u trade decides what u get!

why are you into stock trading?

obviously, for money

but what seems obvious

is not so obvious at the root!

at the root

the reason for coming to stock market may be

- to recover lost money

- to earn some extra bucks

- in search of financial security

- to overcome the poverty

- to gain wealth

- to "prove yourself"

....or any other reason!

--

- if you took to trading to recover lost money, you have brought with you fear and frustration of having been the 'victim of loss'! your subconscious will find ways to prove that you were 'a
victim'! and what better way to prove this than showing you as a victim again! nothing can really happen till you come out of that psyche and trade not to recover, but gain normally!

- if you have come here for that "side income" for "extra bucks", you have reached here with a
baggage of realisation that "it is difficul to making money". your obedient sub-conscious will try its best to defend your belief that it is really "difficult to make monay"! consequently, i won't be surprised if you face so much of difficulty that you don't gain but lose "extra"!

- if you have taken to trading in search of relief from financial insecurity, your psyche is full of fear of insecurity! whatever you earn in stock market, you are unlikely to get that "secure" feeling! your discomfort might increase actually increase! from the insecurity of less money from the insecurity of too much money! the only way left to get security would be to lose this "too much money" and get some relief!

- if you have become a stock trader because you want to come out of years of poverty or financial distress that you and your parents have had to go through, then you have started with an anger against lack of money! whatever money you make in the stock market, is likely to make you remind this anger! rather, the more money you make the more the anger will be there, courtesy that fear of losing it all again. finally, in bouts of psychological stress, your subconscios is likely to land you in losing trades that somewhat relieve you from the pressure!

- if you have started trading to become wealthy you are carrying a strong belief and grudge that
wealth has been eluding you and it is not your fault! your sub-conscious will prove that your
belief is justified. and it is likely to prove this by showing that wealth is still "eluding you"! i am sorry to say that the grudge and belief are here to stay till you nourish them!

- if you are here "to prove" yourself, then i have no hesitation to say that whatever be your
performance you will always have the feeling that you have not "proved yourself enough". this
belief is likely to wrongly influence your decisions which will result in loss that will justify
that "you indeed have to prove yourself!"

--

why do i say all that?

less so because i have experienced one of this myself!

less so because i have seen many around me go thru some of these states!

but more so

because

our minds work that way!

--

whatever is your reality paradigm

whatever is your frame of reference

whatever you think

your subconscious will be out to prove it!

and attract it!!

everything which tallies with your belief world is accepted

everything else is ignored

your subconscious proves what you believe!!!

--

so, what if you have entered the dalaal street with the above reasons?

do you still have hope?

yes!

absolutely!!

but there is a condition!

you have to approach the market with a positive approach!

with a positive reason!

with a positive psyche.

without any negative baggage!

--

remember, if the motive or driving force behind

your taking up trading is

negative

your fate is sealed even before you start!

--

instead

whatever your past

make sure that you are in the market for positive reasons

of aim or ambition or passion or happiness

with darkness behind your back

and your face brightly lit with sunshine!

snake of loss!

many traders jokingly say
"i will start making money in trading
the day i start taking positions
opposite to what my head asks me to do"
i see pain hidden in this self-joke...
the statement seems to be an utterance in frustration
but in my opinion
is not a bad idea at all...
seriously....
--
why do i say that?
because these traders are almost always wrong
and the opposite of their trades is almost always right!
--
why does this happen?
"negative approach!"
these traders desire profit
but keep thinking and fearing of loss!
consequently
they miss every signal of profit.
what starts in search of profit
ends up a hide and seek with loss!
--
why?
just read this first...
--
once a snake was spotted in the thick bushes
at the end of the lawn in front of the house
the family searched for it frantically
but couldn't find it!
that night they could hardly sleep.
next day they searched again
without any success
"it seems to have gone!" everyone thought
but the fear of snake stayed back.
they kept the light in the verandah on
to scare off the snake
in case it was still around!
none could have a sound sleep that night also
next day they decided that enough was enough
so they set the dry bushes on fire!
all bushes were reduced to ash
and there was no snake!
all family heaved a big sigh of relief!
they expected to have a sound sleep that third night
but somehow they couldn't
the fear of past 48 hours refused to go away immediately!
so they kept the verandah light on for that night too!
night passed off peacefully
next morning
when the lady of the house opened the door of the bathroom
she was welcomed by the snake!
what had happened was that
the burning of the bushes had resulted in the snake being rendered homeless
and hence running out for another shelter
since none existed in the cemented neighbourhood
the wandering snake saw the movement of rodents in the verandah
which were attracted by the light
left 'on' to ward-off the snake.
snake reached the verandah and found the way in!
the very steps to ward-off the snake
resulted in the snake landing directly into the house!
--
fear can do strange things
it can distort your decision making process
and provoke and instigate you to do
exactly what you shouldn't have done
it pushes you in the trap
instead of taking you away!
--
as superbly underlined by rhonda byrne
in the masterpiece revolutionary book
"the secret"
we attract things by thoughts!
--
our compulsive obsessive fear in the head inevitably always shows up!
--
so
don't go after the snake of loss.
he is not after you.
rest assured!
when he appears by sheer chance
just change your path
and leave him alone!

mind v/s indicators

who makes the trading decision

you or your mind?

obviously your mind.

you are nobody

your mind is the real you

and what is your mind?

is it the hardware which is mind

or the software in it?

obviously it is the software

if hardware were the mind

all minds in the world would have been the same

and you would be making money in the markets as much as

the most succesful trader having the same hardware!

so,

it is the software that is the mind

and it is this software which is trading

not you!

if you are losing more than you are winning

then the culprit is the software!

who programmed this software?

was it programmed in C++ or Java or VB?

how much time would it have taken to develop this software?

well, no programmer programmed your mind's software!

this software was programmed

through a lifetime of

conscious and subconscious learnings and experiences!

whatever you think

is not you but the the software in your mind that is thinking

on the basis of its likes and dislikes

preferences and biases

fears and greeds

lessons and prejudices

programmed into it till date!

--

everyday

during trading hours

this software is pitched in a direct fight

with the logical signals of technical indicators!

do you have any idea who wins this fight

day after day

everyday?

it's your mind's software!

T.Harv Eker has also strongly endorsed this in his classic

"secrets of a milionaire mind".

the poor logical technical indicator is always vetoed

unless he is saying what is same as the programmed mind is saying!

is it surprising any more that you have been losing despite knowing indicators?

--

and for heavens sake

now don't start flogging mercilessly your mind!

it's not his fault!

start reprogramming it with

"millionaire" thoughts and habits and behaviour patterns!

till date you have not been a milliOnaire

and hence your programmed thoughts are not those of a millionaire

rather, you have been hating the millionaire coterie hearts-of-hearts all these years

and hence your programmed minds are anti-millionaire

whereas your conscious mind wants to be one!

--

tell your mind that

money is not a sin!

profit is not a dirty word, loss is!

tell him gently that

it is not a crime to be wealthy!

risk is not bad but a must!

all sweet things are not profitable

and all bitter things are not bad!

tell him to be less fearful and more bold

tell him that the company of the losers is not a good thing

tell him that it is ok to be oppotunist

tell him that it is ok to profit at other's expense

tell him that it is not a sacrifice to lose in the market

.....tell him a hundred more things

ask him to dare to unlearn old things not fit in the ruthless trading world

persuade him to learn new lessons....

because what he learns

will react in your bank balance!

ready for it - II

if being mentally not ready

is responsible for not succeeding in stock trading

here is a different but effective way to develop a 'millionaire mindset'

but to do that first i need to share with you something

--

in his masterpieces

'6 thinking hats'

and

'6 action shoes'

the great thinker and management guru

Edward de Bono had beautifully driven home the point

that every person has and needs many faces

which he shows or can show!

every face is different

and has a specific ability

suitable for a particular situation

represented by different kinds of 'shoes' or 'hats' in de Bono's books!

it is like playing different roles.

the persona has to come in a totally different avatar for each role!

the problem arises when the man plays the wrong role on the wrong stage!

e.g. if one were to sit across the negotiation table

with the mindset of 'formal navy shoes' (formal approach)

in a situation which demanded

the mindset of 'pink slippers' (informal approach)

the outcome is likely to be a disaster.

what you feel like and behave like and look like

in 'formal navy shoes'

is totally opposite to

how you feel and behave and look

in 'pink slippers' or any other type of shoes!

so, whatever the challenge

just select the right kind of 'action shoes' or 'thinking hat'

and succeed!

--

based on the above

here is the trick to develop "a millionaire mindset"

which is otherwise difficult without

a million dollars in your bank account!

--

"Act"

--

in other words

just play the role of a "millionaire"!

i know, you would say that

since you are not a millionaire

your role play will be faulty!

well, don't worry about that.

you will do it quite well

better than a real millionaire!

--

in fact

you can prepare yourself for any role or responsibility

or challenge in life

by just starting to act the role...

first play the role

then it will come out naturally!

--

feel like

behave like

act like

look like

think like

a millionaire in that very situation!

ask yourself

what different would a millionaire think in such a situation?

what would a millionaire do different in such a situation?

how would a millionaire react differently to this situation?

this way you will not chicken out of situations where you shouldn't have

this way you will have the courage to take a risk your indicators say you should have

this way you will survive the difficult situation without booking profit prematurely

this way you will book the stop loss ruthlessly like a seasoned emotionless businessman

...and so on

you will realise that the trouble used to arise

when we used to react in petty and penny ways of

"non-millionaires"!

a change in decisions

will change the results for you!

--

even if you are a rocket scientist or a surgeon or an engineer or a chartered accountant

your daily mannerism and thinking patterns and fears are different from that of a millionaire

and this is the root cause of faulty decisions

which have landed you in your present state-of-affairs!

--

in T.Harv Eker's words

by acting

you are programming your mind

to generate feelings

to create thoughts

to trigger actions

which will bring amazing and different results!

ready for it? (Part-I)

if you are financially well off

then this article is not for you.

but if you are not

please keep reading.

--

chances are that you must have tried hell of a lot

in your life till this day

to get out of the financial state

you have been

and you are in!

-

by now you must be full of frustration

thinking why are you unable to get out of this situation...

you must be having a good number of dreams and desires...

neither you are able to fulfill them nor forget them!

you have been hanging

halfway between hell and heaven...

neither here, not there!

---

the million dollar question is

why are you there where you are?

and why are you not there where you want to be?

---

if you think that is because of your qualification

then think again...

i can show you a hundred people on the street who are not even literate

but are financially well-off!

i know an illiterate man who has established a flourishing wholesale vegetable supply business worth a few crores of turnover!

i know a barely literate man who is now one of the top civil contractors of the state with turnover of a few hundred crores!

so that excuse is out of the window!

---

if you think it's because of your luck,

think again...

you have had the same opportunities in front of your eyes in the market

as before lacs of other traders!

some made profit from the same opportunity

while others booked loss!

so, don't give me that excuse either!

---

if you have a remorse that you didn't succeed because you are less hardworking

you are again wrong...

i can remind you of several instances in your life

when you had worked damn hard!

so keep that guilt atleast an arm-length away.

---

in case you are thinking that you didn't have adequate capital

you are sadly mistaken...

i don't need to remind you the amount of your money that has gone through your hands into the hands of others over the years!

i can also give you several examples where people have made it big with much lesser!

---

and i am sure you won't commit the mistake of assuming that you don't have ideas!

one of the biggest is right in your hands....stock trading!

---

if you think you didn't succeed because of bureaucracy and corrupt system

think yet again...

we all are surrounded by scores of businessmen who succeeded despite these two blessings!

rather, they saw the disadvantage as a blessing loop-hole and exploited to the full to get ahead fast!

---


so

if you think seriously and honestly

you will realise that you are left with no alibi to justify your state-of-affairs!

---

but

what if i told you

that you and me have not succeeded big time so far

BECAUSE WE ARE NOT MENTALLY READY FOR IT !!!



(to be continued...)

bravery in the market

in stock markets too

"fortune favours the brave!"

but what kind of brave?

--

1. without method and inexperienced?

= never!

(rather, u r going to get killed without the bravery medal)

--

2. without method but experienced?

= sometimes

(but net bank balance remains same or negative!)

--

3. with method but inexperienced?

= more than 'never' but lesser than 'sometimes'

(bank and mental balance always bleeding)

--

4. with method and experienced?

= more than 'sometimes' but lesser than 'always'

(ban and mental balance always growing)

---

so?

a) have a method, and

b) be less brave till you gain experience!

----

finally

what is bravery?

= doing 'it'

or keep doing 'it'

despite fears

when "you know" that it should be done!

the game doesn't end with technical analyses - II

where were you when there was a shorting opportunity

from nifty 6200 to 2600 in 2008?

where were you when there was an opportunity of going long from march to may 2009

from nifty 2600 to 4600?

where were you when nifty rose 1000 points from 5000 to 6000

in 5 months from june to october this year?

just like me, i bet you would have been here only!

some of the biggest opportunities came and went!

we can't complain we didn't get opportunities!

so the problem is not the lack of opportunities

problem is that we are not ready for it.

problem is we fail to recognize the opportunities!

Why?

because opportunities rarely come sugar-coated and gift-wrapped!

they always come crisis-wrapped and dipped in bitter sauce!

it has been like that always

and it will always be like that only.

opportunities will always keep coming

indicators will indicate

you will be around

but you will keep missing the bus

unless you tune yourself to recognise them in their disguise!

not only that you would have to bear

fear

worry

discomfort

and

all kinds of emotions

as a cost of boarding the bus!

---

the game doesn't end with technical analyses

it just starts from there!

the game doesn't end with technical analyses

there was a time when i thought

knowledge of technical indicators was a sureshot passport to success in stock trading.

so, i studied technical trading religiously!

while my knowledge increased manifold

it didn't show in results!

so, i worked harder and learnt more technical indicators...

but i was shattered when i started losing more and often...

i had no clue as to why i was losing more and more when i was supposed to be winning....big and easy!

infact, i was losing much more than those who knew almost nothing!

i had already "mastered" some indicators

i could foresee many moves of the market beforehand!

still my bank account kept bleeding...

---

my dreams of quitting my job for a fulltime career in stock trading went for a toss!

i must admit that i mentally quit stock trading atleast 20 times

everytime with a big heartbreak!!!

each time i swore not to come back again

each time i "finally decided" to concentrate on job and look for other avenues of making money!

but every time a graph came in front of my eyes, my mind started giving unsolicited opinion

and more often than not, that opinion was damn right!!

--

i was in a situation where i could neither quit nor stay in trading!

i badly needed help!

help was everywhere, but not the one i needed!

i realised that

while both the winning and losing traders know their technical indicators

while both had their "godfather" favourite technical indicators

there was somthing else which made "hell-of-a-difference"

something which i was missing like a big fool!

it started dawning on me that technical analyses was only half the job....rather even lesser!

--

then, one day, i got my hands on

'secrets of the millionaire mind' by T.Harv Eker

and i got my answer!!!

the difference was

"the mindset"!!!

the winner's mindset....

pattern of thoughts....

pattern of response....

pattern of taking decisions!

while both the winner as well as loser traders

use the same indicators

in the same market

at the same time

.....the difference was

in their response!

the way the winning and losing traders respond to same signals is shockingly different!!!

i realised that losing and winning traders

thought

and felt

and acted

differently

even while the indicators indicated the same indication to all!

--

i also realised that there was similarity in the thought patterns of the winners!

and not surprisingly, there was a common-thread in the thought patterns of losers!

same situation but

one buys, other waits!

one buys, other chickens out!

one shorts, other plays safe!

one shorts, other chickens out!

one jumps, other waits patiently!

one buckles, other endures!

--

the message was loud and clear.

i shifted my attention from studying more technical indicators

to studying my thought patterns...

my reactions to situations...

my response to stimuli...

the difference between what i knew and what i did...

--

my technical indicators were still the same

but my mindset was changing!

...not surprisingly, the results started to change too.

---

indicators only tell you what is likely to happen

what you do thereafter makes all the difference!!

without the right mindset

riding the false confidence generated by the steroid effect of indicators

may prompt you to take bigger positions resulting in a bigger hit!

technical indicators cannot take us beyond the first level

winner's mindset does!

the game doesn't end with technical analyses

it just starts from there!

Prepaid Trading - IV

Life, they say, is the art of possibilities!

If that is so,

Trading with options is nothing less than the dance of possibilities!

And when you know that buying an option guarantees

"unlimited profit, limited loss"

then why not dance this dance!

My friend Rishant is real good at this!

In his words

"In life as well as trading, it is not what 'IS' that is exciting!

What's really thrilling is the thought of what 'CAN' be!"

Every month he sets aside a few thousand bucks for this "thrilling gamble".

He doesn't smoke, he doesn't drink, he is not a spendthrift either.....

but he does spare some money for this!

He calls it "lottery in the dalaal street"

Every month he buys this "lottery ticket"

He buys a cheap stock option for the next month series

of a good-stock-in-the-pit

(on the basis of technical analyses of 1 year chart)

of a strike value "what CAN be" instead of "what is"!!!

He bets for the seemingly impossible!

He bets for the opposite!!

Amazingly, more often than not, the opposite is what that has been happening

(albeit to different degrees!)

and over the months, he has surely become the artist of possibilities!!!

Prepaid Trading - II

1) u have just 5000 in ur pocket

2) u don't want to take big risk

3) u want to make big money

4) u want to do this fast!

Impossible?

I m possible!

Trust prepaid (options) trading!

Step I :

put 4000 out of 5000 back in the chester.

Step II :

learn 2 technical indicators thoroughly.

Step III :

when your TA (technical analysis) indicates that the market is about to move up or down buy one lot call or put (whatever be the case) which is available at around 20 bucks. This will cost you around 1000.

if your TA is right the call/put (as the case may be) will zoom to 40 bucks in a few sessions.

book profit.

(even if your TA was wrong, all you would have lost is 1000. in that case, take another 1000 from your chester and take another shot. you have 5 such chances with the 5000 you started. but for the time being, i am sure ur TA would be correct!)

after step III, you now have 2000 in your pocket (besides 4000 in the chester)

Step IV :

when your TA (technical analysis) again indicates that the market is about to move up or down buy TWO lots of call or put (whatever be the case) which is available at around 20 bucks. This will cost you around 2000.

if your TA is right the call/put (as the case may be) will zoom to 40 bucks in a few sessions.

book profit.

now you have doubled your wealth again.

now you have 4000 in hand.

so far, you have doubled twice.

Now, divide your wealth again in two parts.

put 2000 in the chester (now your chester has 4000+2000=6000).

you now are left with 2000 in hand.

--------------

repeat Step IV with this 2000 and buy double the lots you bought last time!

and double it to 4000.

repeat Step IV again with 4000.

and double it to 8000.

Now you have doubled twice again.

divide it in two parts. put 4000 in the chester (now your chester has 4000+2000+4000=10000).

you now are left with 4000 in hand.

--------------

repeat Step IV with this 4000 and buy double the lots you bought last time!

and double it to 8000.

repeat Step IV again with 8000.

and double it to 16000.

Now you have doubled twice again.

so, divide your wealth-in-hand again in two parts.

put 8000 in the chester (now your chester has 4000+2000+4000+8000=18000).

you now are left with 8000 in hand.

---------------

repeat Step IV with this 8000 and buy double the lots you bought last time!

and double it to 16000.

repeat Step IV again with 16000.

and double it to 32000.

Now you have doubled twice again.

so, divide your wealth-in-hand again in two parts.

put 16000 in the chester (now your chester has 4000+2000+4000+8000+16000=34000).

you now are left with 16000 in hand.

--------------

repeat Step IV with this 16000 and buy double the lots you bought last time!

and double it to 32000.

repeat Step IV again with 32000.

and double it to 64000.

Now you have doubled twice again.

so, divide your wealth-in-hand again in two parts.

put 32000 in the chester (now your chester has 4000+2000+4000+8000+16000+32000=66000).

you now are left with 32000 in hand.

---------------

This way you keep doubling your fortune.

You keep increasing your chester money.

starting with minimum money.

without taking big risk (considering the backup money in your chester)

God forbid, if your TA goes wrong at any time, you can start with a lower step from a portion from the chester.

Have patience for the initial few steps. the compounding rise will take you higher than you can imagine faster than you can think!

---------------

all the best!!!

---------------

and the winner is.....

3 years ago I started a monthly SIP (Sytematic Investment Plan) with SBI Mutual Fund's Magnum Tax Gain'93.

I started it not because of my prudence

but because of

a) repeated edging by one Mr.Vijay (a real gentleman financial advisor whom I now trust utmost) and

b) the reason that I wanted to save some tax under section 80C but in a way which gives more return than traditional life insurance

(I believe that one should buy term insurance for life insurance and mutual fund with or without SIP for savings!) (the above mentioned fund gives 80C benefit besides market investment returns)

Frankly speaking, when i started the SIP with a small monthly contribution I was least excited!

Reason?

"It will take ages before the monthly systematic investment will becaome a fortune!" I thought.

Still, I did start with the SIP and gave 12 cheques to Vijay.

Every month it was an irritant to part with the instalment.

Many times I decided to stop the SIP after the committed 12 instalments.

But after around 8 months, one day I was pleasantly surprised to receive a dividend cheque from the MF.

It was a decent amount but it appeared many times bigger due to the surprise element!

Besides, my corpus had grown!

So, I continued with the MF after the first year as well.

Here, I wish to share that I started the SIP when the Sensex was above 20000 just before the crash!

But because of it being monthly SIP, my instalments kept entering the market at every stair in the staircase.

My SIP instalment went into the market at 20000 as well as 7500, 15000 as well as 9000, 12000 as well as 10000......

....and it is still continuing........

The annual dividends I get fund my kids annual fees automatically! Alternately, it leaves me with a handsome amount to do anything I wish to! Last year we had a grand annual family vacation in Kullu & Manali!

And the beauty is that the corpus is growing.....

.....in compounded fashion just like the prize money in Kaun Banega Karorpati (Who wants to be Millionaire).......

What was an irritant every month is today a monthly reminder of the assured and growing prosperity!

Every month I thank Vijay hearts of hearts for somehow forcing me into this equity-linked savings.

Jokingly, I have been playing a race between my savings in this MF and the growth in my self-trading earnings.

I have no hesitation in admitting that I have been left gasping behind the MF especially after this recent bull spurt!

Why I shared this story with you?

Two reasons.

First, to recommend SIP based Mutual Fund investing to everyone!

Second, to share a strange phenomenon mentioned below.

I have

never ever

never ever

never ever

thought of selling my SIP savings!

I just think of investing more and more......

I just think of topping it up whenever market is in oversold state!

whereas I rarely survive the itch to book profit in my trades!!!

What fantastic paradoxical opposite faces of my same self!!!

One is willing to not only hold all investments forever but keep adding to it! (The fund manager keeps rotating the investment into sectors and stocks as per the situation)

The other is dying to run away with the pennies after every round!

One full of stress!

One full of pleasure!!

I have least doubt who will win this race.

It will surely be the tortoise this time as well!

i m possible

If u wanted to be wealthy in stock market but so far have misearbly failed in this aim

then I want to ask you a question.

Have u ever profited in atleast one trade? with method? with confidence?

Did u make profit atleast once? without fluke? with surety?

If your answer is "No" then your problem is 'method' or 'knowledge'.

But if your answer is "Yes"

then what if you had taken 10 times bigger position you had taken in that profitable trade?

so?

your first problem is the size of the trade and the factors which are stopping you from doing so!

and, what if you had been successful in repeating that profitable trick again and again?

meaning?

your second real problem is the inability to repeat what you know or can!

In a nut shell,

your problem is not the lack of knowledge

but lack of repetition and inability to take bigger position.

consistency and size of trade!

You are nearer to the professional success in trading than u think!