“Do you have it in you!!!”

There are on an average around 5 big opportunities in any market / index every year when a huge rally happens.

e.g. There have been 5-6 in nifty in last 12 months, 6 in CNX-IT and 4-5 in FTSE (UK)

the shortest is of 1 month duration while the longer one is 4-5 months long!!!

It is not impossible to catch those ‘mother of rallies’, it is easy to anticipate them but difficult to mouth and digest them whole (or a substantial part) without skill, strategy and mindcontrol.

I have not done these as yet. But since i developed the advance methodologies in the last 1 year, i am itching to catch the next one. Till that time, i am preparing patiently and practicing identifying and riding them (downscaling/simulating them in intra-month rallies).

In between every such rally is an intermediate ranging, sometimes small sometimes quite long.

Some of these rallies are short, and u may outstay in it, while other times the rallies may surprise you by the extent they keep going,  u having quit early!

All this need practice and skill with select tools.

Such rallies can’t be expected but followed as and when and to the extent they are, till they are!

But the point i want to make is twofold

minor– if u miss these 5-6 odd mega chances, what if you catch other peanut opportunities? And if u catch these, what if u lose all others!

Major- if the stakes to claim are that high (each rally can be 10-20% index rally can potentially make u quite rich in just a few weeks), are we in a position to leverage / encash it to the max?

Skill, technology, mental toughness, experience are one thing, capital (funds) and financial management (risk management) when u r in the big ride, is critical and decisive.

So much so that on one side we are desperate to encash it and on the other hand, when the opportunity is right there in front of our eyes, we either chicken out or play it small or are simply not ready for it!

The real fear of any sufficiently advanced trader is not the threat of loss, but the nightmare of missing the big profit!

So many times i have seen traders praying all life for the big opportunity and when they get it, they just say hello and turn back!

I strongly feel that so many struggling traders are in the real danger of self-hypnotism whereby they double cross themselves by convincing their conscious minds that they want it and programming their subconscious minds as to why they can’t do it!

I recall the Indian Army ad punchline – “Do you have it in you!!!”

I ask myself sincerely – “Do i have it in me?”

are u an optimist or pessimist trader?

optimist trading students
survive difficulties
longer, better and easier
and
have better chance
of succeeding
than
pessimists.

are you an optimist
or a pessimist?

take the following test by Dr. Martin Seligman
in the link below and find out.

http://www.stanford.edu/class/msande271/onlinetools/LearnedOpt.html

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!

Myers-Briggs trader personality types

"What is happening?"

"What do I do now?"

If you are a trader, then these two questions must be appearing before you everyday!

What your answer is depends on who you are and

what is your personality type!

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

First, lets see how different people find answer to the question

"What is happening?"

According to Myers-Briggs theory of personality types

One type of people perceive situations on the basis of data and information!

while the other type of people perceive situations on the basis of the bigger picture!

The first one is based on logic in the left brain.

The second one is based on the intuition in the right brain.

If you are none of the above two, then you are not using the brain!

If you are one of the two, you will do good in the market.

If you are both, you are a pro!

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

Now, come to the second question

"What do I do?"

According to Myers-Briggs theory of personality types

One type of people take decision purely on logic

while the other type of people decide on the basis of feelings - on the basis of likely impact of the decision.

The first one is based on logic in the left brain.

The second one is based on the intuition in the right brain.

If you are none of the above two, then you are not using the brain!

If you are one of the two, you will do good in the market.

If you are both, you are a pro!

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

Mr.Practical

Are you in stock trading

a) for profits?

b) for the satisfaction of being right in your trade predictions?

c) both?

If your answer is 'b'

Then you are most likely suffering from the disease of hanging on to losing positions!

You are in the mental state of denial.

You find it difficult to accept your "prediction" gone wrong!

You find all kinds of excuses to hang on and finally pay the price!

If your answer is 'a'

Then you have the rare quality of a successful trader, irrespective of how experienced you are in this field!

Being profitable is more important to you than being right!

If you are proved right, great! Otherwise, you dump your judgement and go along with the trend without even an iota of hurt feelings!

Rather, you silently pat your back and call yourself "Mr.Practical" !

(Answer 'c' is same as 'b' except that it sounds good)

But, how to avoid the ego trap?

First, never announce your trade!

Discuss anything and everything but never give any advise!

Never treat any opinion as final. Just treat it as a high-probability likelihood event!

And, finally, just change the spellings of your ego to igo (I go).

Take this trader test & know yourself better

Given below are 23 questions. Try answering them honestly. Note down your answer on a piece of paper. Answer ratings are given in the end.

After you are done, just total your score and read the interpretation.

Best of luck!

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

Q.1. You book profit
a) when the profit is too handsome to lose
b) when you feel there can't be much more profit
c) when you have a sell signal

Q.2. You book loss
a) when any more loss is unbearable
b) when stop loss is hit
c) when the loss is small

Q.3. Your position size (amount) in a trade is decided by
a) the amount you have
b) the profit you want to have
c) the loss you want to backup

Q.4. You buy
a) when others are buying
b) when others are selling
c) when there is a buy signal

Q.5. The method you choose
a) is the one you have shortlisted after trying many others over a period of time
b) is from a basket of favourite methods
c) you don't believe in method

Q.6. In your opinion, emotions are
a) good
b) bad
c) unavoidable

Q.7. You believe
a) in waiting for the right opportunity
b) in benefitting from every situation
c) in random trading

Q.8. When the opportunity you wanted is in front of you
a) you have butterflies in your stomach and wait for a while more
b) you smile and enter the trade
c) you suspect the authenticity of the opportunity and prefer to wait for confirmation

Q.9. In your opinion, risk is
a) good
b) bad
c) unavoidable

Q.10. When the market is falling
a) you like it
b) you hate it
c) you stay away

Q.11. When the market is rising
a) you like it
b) you fear it may fall
c) you wait for the fall to enter

Q.12. When people are panicking
a) you are one of them
b) you are one of greedy ones
c) you are cautious

Q.13. Trading expenses, in your opinion, are
a) most important
b) somewhat important
c) not important

Q.14. When a trade goes wrong
a) you wait & watch & expect it to stop and turn back
b) you square-off and quit
c) you have a plan B

Q.15. In your opinion, timing the market
a) is possible
b) is not possible
c) is possible to a reasonable extent

Q.16. You are in market to
a) learn
b) make profit
c) get rich

Q.17. For you, loss is
a) a slap on your face
b) a setback
c) a lesson

Q.18. For you, profit is
a) to be celebrated
b) to be acknowledged
c) to be suspected

Q.19. In your opinion, trading is
a) gambling
b) business
c) side-business

Q.20. You find trading
a) exciting
b) boring
c) frustrating

Q.21. You trade
a) long side only
b) short side only
c) both long as well as short side

Q.22. You prefer
a) timely small profits
b) untimed but big profits
c) profits (at whatever time interval)

Q.23. When someone praises you
a) you feel good
b) you feel awkward
c) you feel scared

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

Answer ratings:-

Q1.a)0 b)1 c)2

Q2.a)0 b)2 c)1

Q3.a)1 b)0 c)2

Q4.a)1 b)0 c)2

Q5.a)2 b)1 c)0

Q6.a)1 b)0 c)2

Q7.a)2 b)1 c)0

Q8.a)1 b)2 c)0

Q9.a)1 b)0 c)2

Q10.a)2 b)0 c)1

Q11.a)2 b)1 c)0

Q12.a)0 b)2 c)1

Q13.a)0 b)2 c)1

Q14.a)0 b)2 c)1

Q15.a)0 b)1 c)2

Q16.a)1 b)2 c)0

Q17.a)0 b)1 c)2

Q18.a)0 b)2 c)1

Q19.a)0 b)2 c)1

Q20.a)1 b)2 c)0

Q21.a)1 b)1 c)2

Q22.a)0 b)2 c)1

Q23.a)0 b)2 c)1

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

Interpretation:-

0 to 12:You are a casual trader. Get serious otherwise you may be knocked out with heavy losses.

13 to 25:You are an amateur who is ambitious but struggling with basic problems and shortcomings. Fear is stopping you to move up the ladder. Your trades are risky and are prone to traps. You are unsure about your trades. You are still being taken for a ride by your emotions. Reduce your position size and trade with confidence and guts. Increase your appetite for big profits.

26 to 40: You have broken that crucial resistance level in the growth of a trader! You have certain issues to be ironed out but you are aware of them. Your trading career is in advanced stage and now there is no looking back. All the best!

Above 40: You are a Pro! Congratulations!

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

Honorary BA (Stock Trading)

International University of Self-made Stock Traders, USA*

has invited applications for the awarding of

Honorary Bachelor's Degree in Arts (Stock Trading)**

to the elgible candidates.

The eligibility criteria:-

Basic Criterea:-

* The applicant should be alive and kicking (but not being kicked by the stock markets)

* Age = Youthful

* Religion = Trading

* Caste = Winner

* Gender = Dominating (Docile traders not eligible)

* Nationality = Any country having atleast one stock exchange

* Colour of skin = Green (colour of profit)

* Language = Graphs

* Experience = All kinds of stupid mistakes big and small (compulsary)(so that there is little sscope for newer ones)

* Donation = Emotions (none should be left behind in you)

Advanced Criterea:-

* Trades less, Profits more

* Knows many Technical Indicators but uses only favourite 1 or 2 (max 3) to deadly effect.

* Doesn't Day Trade (except for fun and learning), primarily swings!

* Is married to a Mrs.Method and is absolutely faithful to her!

* No smart and flashy strategies but only dull and boring and repetitive but highly profitable trading rules!

* Doesn't need tips. Treats unwanted tips and calls as a request to give his/her opinion!

* Has forgotten how to panic.

* Has the audacity and shamelessness to smile at the crashes and wink at the corrections!

* Doesn't short (except for fun and learning)

* Isn't a Doctor (but a permanent patient - the one who has a unlimited patience)

* Is the best waiter in the town (can wait endlessly if required)

* Doesn't leverage except to a wise limit

* Has attended all the lectures on "the magic of the compunding effect!"

* Is not a spendthrift, believes in simple, frugal but impressive life!

* Graph scanning is his hobby

* Diversifies but not too much

* Doesn't watch the stock every day

* No trader terminal, no flashy software

* Know how to play with "white" as well as "black" pieces

* Doesn't have a paycheque mentality

* Bows before God every morning and then after Mr.Stop Loss"

* Has deep Emotions "for" Trading but no emotins "in" Trading.

* Has excellent imagination (Can imagine the bull "rain" during peak bear "drought")

* Has money discipline