tip in the pot to the top

all tips are not bad.


some are good

few are excellent.


but surprisingly

almost all

especially the ones mass circulated

seem to go in opposite direction

for some time

before they show their worth.


reason?


well,

the technical calls are based on

technicals.


good technical tips

are pro-rally

and more importantly

pro-fundamentals.


big-pocket operators

know it and see it all.


while they certainly can't ignore

the fundamentals and the rally for long

they definitely have the reason, intention and power

to rock the boat

in opposite direction

atleast for some time.


good "tipsters"

know all this.


they try to give tips

after some delay.


i.e. they don't pass on the tip

the moment one pops up!


but hold it

keep it in the "pots of ready tips"

till the tips season out

mature

age

get despirited

denatured

and

de-stinged!


once the operators are done with their tricks

the tippers

reach their golden "pots"

recheck

and release the tips!


a good tip

must go in the pot

before going to the top!

psychology of tippers - II

(reminiscences of stock operator)



"tips! how people want tips!

they crave not only to get them

but to give them.

there is greed involved, and vanity.

it is very amusing, at times, to watch really intelligent people

fish for them.

and the tip-giver need not hesitate about the quality,

for the tip-seeker is not really after good tips,

but after any tip.

if it makes good, fine!

if it doesn't, better luck with the next.

..........tip-seekers and tip-takers are invariably tip-passers,

tip-broadcasting becomes a sort of endless chain advertising."

psychology of tippers

(reminiscences of stock operator)



"i sometimes think

that tip-takers are like drunkards.

there are some who can't resist the craving

and always look forward to those jags

which they consider indispensable to their happiness.

it is so easy to open your ears

and let the tip in.

to be told precisely what to do to be happy.

it is not so much greed made blind by eagerness

as it is hope bandaged by the unwillingness to do any thinking."

trading with grace!

the fly

sitting on the bolt

of the panel

of the wing

of the aircraft

thinks

that

she is flying the jet!

-

neither the passengers

nor the turbines

mind her repeated buzzing

till

she doesn't shriek

about her trading abilities!

The Tip of an Iceberg!

Desperate unsuspecting traders are more than willing to tip over any tip that comes their way!

But often this tiny tip drowns them!

the reasons are not hard to find.

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

The tippers never tell you that they themselves are trading on super high speed always-on lease line connections!

- that you may be in a highly disadvantageous position if you are trading by other slower means

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

They never tell you that they always have auto Stop-loss bids in place in their dedicated terminals with powerful software!

- that you may not be able to trigger stop loss fast enough in case of a stampede and that there may be a huge gap between your order stop-loss price and the actual executed price!

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

They never tell you that they are operating on penny brokerage plans and that their own cost of trading is peanuts and hence their net loss in case of a SL-hit is much lesser!

- that your brokerage plan may not make it easier for you to afford even a stop-loss!

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

They never tell you that they have more than enough buffer funds to hold onto their losing positions if required

- that your risk may not be justified in the absence of adequate buffer funds and you may be on the road if your stop loss remains un-triggered!

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

They never tell you that the client is expected to make money only IN THE LONG RUN as some losses are inevitable

- that you may be left behind if you stop trading after the loss and are expected to keep following the tips even when you lose!!!

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

They never tell you how many more clients are receiving and acting on that call, and that such mass tip circulation is a favourite hunting environment for the big-pocket pick-pockets

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

- that you may actually be volunteering to be a sitting lame duck for the hunters!

(This probably explains why I found majority of the calls going the wrong way after a mass tip in the media or from a big brokerage house!)

(Manipulations thru mass tipping is common these days where only the first few benefit!)

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

They never tell you that their own actual exposure to that particular scrip or trade is much lesser as a part of their entire portfolio and hence a loss in this particular trade may not hurt them much overall.

-that you may be putting all your eggs in a single basket which doesn't even belong to you!

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

They don't share the basis of the call and whether the tip is a copy paste from another source!

- that you may be tipping on a tip that has no or frivolous base!

(Putting your life into the hands of someone who is not even sure about his!)

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

A tip is not just a simple innocent tip.

It is the tip of an Iceberg!

Disclaimer=!@#$%^&*()....

A trader was new to market.

He didn't know much about trading but wanted to make "a lot of money".

Since learning would have taken "a lot of time"

he decided to "buy professional help".

The next day I saw him in the trading jungle.

He was riding a tiger (highly leveraged risky position).

Margin deposited by him to ride the tiger = his life (his lifetime of savings).

He was still happy.

I silently waved at him to ask what the hell he was doing!!!

"You don't know how to handle a dog and you are riding the tiger!", I whispered with shocked eyes!

He just showed me his mobile phone.

I saw a series of sms tips from a brokerage house.

"Jump on the Tiger. Disclaimer=!@#$%^&*()"

"Now sit tight on the Tiger! Disclaimer=!@#$%^&*()"

"Now turn left by pulling his left ear. Disclaimer=!@#$%^&*()"

"Now turn right by pulling his right ear. Disclaimer=!@#$%^&*()"

"Don't worry if the Tiger is roaring. He is bluffing. Disclaimer=!@#$%^&*()"

"Don't worry if he knocks you down. He won't do anything as per our research. Disclaimer=!@#$%^&*()"

"If he is looking directly in your eyes, wait for the trend. Disclaimer=!@#$%^&*()"

"If he runs after you, maintain strict stop loss. Disclaimer=!@#$%^&*()"

Next day I found him dead.

I picked up his phone, went to his message box and saw

"Disclaimer=!@#$%^&*()"

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

Morals of the story :

1. "In the past, those who foolishly sought power by riding on the back of the tiger ended up inside." - John F. Kennedy"

2. If you must ride a tiger on somebody's tip, know the crucial things yourself too.

"Tips are for waiters"

Please don't feel offended. These are not my words.

Moreover, neither you nor me depend on 'tips'.

These words were spoken by Larry Livingston, one of the world's greatest stock traders!

He was a strong opponent of acting on tips to buy or sell a particular stock.

He even pointed out on a number of occasions how trading opposite of tips can be the best way to make money!

- the "tip" provider may have his own motive behind it

- the "tip" provider may have himself got the tip from somewhere

- the "tip" provider may not be competent

- the "tip" may have "conditions apply" clause not disclosed

- if thousands and lacs are getting the same "tip" it is a sitting duck for the punters

- the "tip" may be a rumour

- a "tip" generally doesn't come with a Stop Loss, Target and Time frame

- a "tip" will never give you confidence

- a "tip" will always keep you dependent

- since you rarely know the reason behind the "tip" it is dangerous!

- the "tip" may no longer be valid!

- the "tip" which has reached you after changing many a hands is as deadly as the chinese whisper!

- the "tip" may be an orphan (nobody knowing who started it)

A "tip" however is different from a "call" from an expert who has got the credentials, a reputation and a stake!

So, tick off the "tip", take the "call".

And better still, do the "own thing"!