sometimes (if not always)
if u have power in your pocket
you are tempted to use it.
in stock markets
those with money
have the power to take a trade.
amateur traders
succumb to the lure of using this power
almost everytime!
they are "instigated" to use them!
-
i too have been through this phase.
i just couldn't say no
to chocolates, icecream and indicator signals.
overwhelming majority of signals from the indicators and methods and tricks i learnt
turned out to be right.
but i was still not making money
atleast not considerable amount.
much less than what was possible!
i always wondered what was the reason
till i realised
that 80% of these "signalled" trades yielded
just 20% of the profit
but 80% of the trading costs!
besides, these 80% calls caused 100% of the stress!!!
i realised
that i had to reduce my number of trades.
i realised
that i had to find a way
to spot the hollow (though right) signals!
this seemed more difficult
than learning trading!
acquiring power is easy.
taming mind not to use it at the drop of the hat
is difficult.
-
and then, one fine day
the solution was right in front of me.
i recalled, remembered
(this fact is the easiest to notice
but the most difficult to follow)
that
prices move in cycles.
i am not talking about seasons
though they are included herein,
i am not just talking about macro-economic cycles
though they too are included here
neither do i mean only bull and bear cycles
although they are also included
i am talking much smaller cycles.
the weekly / fornightly cycles.....
-
i spent some days
just re-watching all charts
from this point of view.
i marked points on the charts (5min tick, 30min tick, 1day tick etc)
which according to me
were the turning points
of a cycle!
all crest and troughs....
amazingly, all these turning points were superbly marked by indicators also.
also, every cycle was part of a bigger cycle. in other words, there are cycles in cycles in cycles...the smallest cycle being the intraday (2 min tick cycle).
it was an amazing realisation.
the secret was in front of me.
all i needed now
was to adopt this in my trading.
i had to ignore all the signals after and before the turning points.
the signals for the turning points had to be different and distinct from the "in-between" signals.
-
to reduce the stress while i experimented
i used options for these "cyclic" trades.
since the signals i use are generated using a combination of two indicators,
i findly call this type of trading style
as riding the trading bicycle.
-
riding this bicycle
my number of trades are dramatically down
and bottomline is dramatically up!
if u have power in your pocket
you are tempted to use it.
in stock markets
those with money
have the power to take a trade.
amateur traders
succumb to the lure of using this power
almost everytime!
they are "instigated" to use them!
-
i too have been through this phase.
i just couldn't say no
to chocolates, icecream and indicator signals.
overwhelming majority of signals from the indicators and methods and tricks i learnt
turned out to be right.
but i was still not making money
atleast not considerable amount.
much less than what was possible!
i always wondered what was the reason
till i realised
that 80% of these "signalled" trades yielded
just 20% of the profit
but 80% of the trading costs!
besides, these 80% calls caused 100% of the stress!!!
i realised
that i had to reduce my number of trades.
i realised
that i had to find a way
to spot the hollow (though right) signals!
this seemed more difficult
than learning trading!
acquiring power is easy.
taming mind not to use it at the drop of the hat
is difficult.
-
and then, one fine day
the solution was right in front of me.
i recalled, remembered
(this fact is the easiest to notice
but the most difficult to follow)
that
prices move in cycles.
i am not talking about seasons
though they are included herein,
i am not just talking about macro-economic cycles
though they too are included here
neither do i mean only bull and bear cycles
although they are also included
i am talking much smaller cycles.
the weekly / fornightly cycles.....
-
i spent some days
just re-watching all charts
from this point of view.
i marked points on the charts (5min tick, 30min tick, 1day tick etc)
which according to me
were the turning points
of a cycle!
all crest and troughs....
amazingly, all these turning points were superbly marked by indicators also.
also, every cycle was part of a bigger cycle. in other words, there are cycles in cycles in cycles...the smallest cycle being the intraday (2 min tick cycle).
it was an amazing realisation.
the secret was in front of me.
all i needed now
was to adopt this in my trading.
i had to ignore all the signals after and before the turning points.
the signals for the turning points had to be different and distinct from the "in-between" signals.
-
to reduce the stress while i experimented
i used options for these "cyclic" trades.
since the signals i use are generated using a combination of two indicators,
i findly call this type of trading style
as riding the trading bicycle.
-
riding this bicycle
my number of trades are dramatically down
and bottomline is dramatically up!
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