Birthday Thrashed.....

It was my 31^st bday and  I was a little elated – jst like everybody feels on their bday, and I think I was not suitable for trading “mentally”  as I was talking on phone since morning with every sort of ppl like friends, relatives & colleagues & remembering good ol times and hi-hello stuff. That made me a little ignored towards days activity – which was a mSAR day, means –most important days in month of trading, when security is trading near its daily mSAR value.

 Nothing happened  till one gets mentally tired of non-action day, i.e. when 75% of days trading period is over and at 2.20pm I was hungry and went for lunch, which took 15 mins, and when I came back to see the quote BN was up 100 pts. Way above my days SL. I was like … what the Fuck??? Biggies just scrwed retail traders.

I immediately swung into action and covered my shorts , putting an end to my loss`.  (which could have been doubled if I hadn’t covered at 10,010, BN closed at 10080)

Its very important to keep calm during times like these.

 I lost approx 250 points (80 x 3 + brokerage) ,

I never wanted to do 3 lots, as my monthly cap is at 2 lots for current month (july 2010) . but as I was elated from the start and feeling very good about day [bcoz it was my birthday…. (What the fuck)]

But due to this mistake I went short in M3 contract, i.e. September , instead of august. so, to balance September I went short in august, and thought of covering in September but that didn’t happened due to my fucking mind – I ignored the rules. And for that I paid. Good 80 points for nothing.

If only I had played by the rules of trading only one lot while starting out, and than adding when its in profit of 50 points than I wouldn’t had made this much loss.

So, the lesson I learnt from this is never start any trade with multiple positions. Always wait for the first one to show the profit and than keep adding.

So, today I vow to never trade multiple qty on same price, let the first one show the profit and than add on. And never be ignorant on the day of mSAR. Always be on alert. BN has power to run 120 points in 15 mins. See the chart above. And that can fuck u very well.- if ur loaded with multiple qtys ON WRONG SIDE...

Never mind...

I cleared all -ve thoughts of bad trading day went off with wifey n kid for a little pizza party n enjoyed the day in the end.

Jesse Livermore Books.

after getting the "reminiscences of a stock operator" of jesse livermore on 12th December 2009, today after six months i completed it and it immediately made me get hands on other books by him, so i got the other three books i can get.

1) How to trade in stocks by jesse livermore

2) Jesse Livermore - worlds greatest stock trader by richard smitten

3) Trade like jesse Livermore by richard smitten.

Today started with the first one,
will update more on books , later.

Good BlogPost about Fisherman-Fishing-Fish & Being Fished...

Just Nifty: It is all about "Doing": "orcast the market with stops.
no problem . i"

Reading Habit & Warren Buffet

Question : You seem to be so well read, tell us how it started?

Warren Buffet : My father was a stock broker, so we had all these financial books in our library, he introduced me to those classics & i got into them, I am lucky that my father was not a fan of Playboy. Reading is the best habit you can get. Well, you can learn from teachers too, and have mentors but there are so many constraints attached - they will talk fast, talk slow, the might talk like a pro or they might be terribel communicators. Books are really different animal altogether, i love reading! The beauty about reading & learning is that the mroe you learn the more you want to learn.

As told in Shareholders meet 2008 @ Omaha.

nice post from stateofthemarket.net

very good observations & points to remember
 by deepak singh of stateofthemarket.net/blog at

http://www.stateofthemarket.net/blog/?p=13968&cpage=1#comment-6275

nothing works always in market.
one has to be dynamic and adaptive to survive in market.

what worked before 2008 is not working after 2008.

some remarks by traders....

usefull remarks.

assortZ
said...

Good morning all,

Little gloomy here :) ..closed shorts
yesterday but the worst part was entered longs @ 4945 and carried them (
RSI trapped me) ..shocked to see the deep red everywhere in the
morning…but pre-market view gave the confidence to hold longs..booked
longs at 4885 and entered shorts now at 4885…looking this as an
speed-breaker to the winning streak of the recent past and “much needed”
for me to keep foot on floor and walk step by step.. registering all
this here becoz only to remind friends here..

1. think twice
before entering trades “against trend” especially if it is overnight
carrying trade..i never did this in recent times but did yesterday :)
2.
think thrice before closing “conservative” calls yourself..always
better to wait to hear from master before taking such “slicing golden
duck” decisions :)

May 21, 2010 10:35 AM

Historic Trading Day for a trader

May 6 2010.

This day i will never forget.

i was awake, playin games on computer (very rare thing)

i was long in Banknifty and closely monitoring dow from 11pm (IST) .... and hoping in my heart that it will go up - so that indian mrkts gap up nxt day.

but somebody had different plans for US markets that day.

and above chart says it all the game they played with DOW.

I was simply horrified to watch that unfold all the action in front of me....

tick by tick.

Very Unnerving experience.

This is the day which made me think what could happen to u if u trade with Leverage and How u can go bankrupt in just a single day.

More on this day  later.

most upsetting documentary movie

Hi all,

I m very upset (because MONSANTO is present in india) & happy (because i m not US citizen whos eating GMO food) after watching this movie called FOOD,INC (2008).

It shows naked truth how about food being produced & eaten in USA today (and may be i m too eating it in india as MONSANTO does business in india too.)

I started watching this one anticipating ENTERTAINMENT on lazy weekend but ended up disturbed – after learning the blatant truth about modern foods.

It took me two days to find the links for downloading this movie but i found it finally, to make your work easy i will put the links over here.

 Watch it online here

Download it from following links.

FILE 1,

FILE 2,

FILE 3

I strongly URGE  & REQUEST you all to watch this movie.

if u feel as i felt, do drop in your views as comments.

Mastering the art of Entries & Exits.

It takes a lot of patience & preservance to enter/exit  any trade at predefined point.

Like today, since last 15 days i m trying to concieve in my mind that maximum value is offered when trade is taken at sweet spots.

today also, i came to trading thinking that i will enter in longs when nifty comes to any of sweet spots, but i entered  in trade by 13 points early,
and later in the after noon i was offered a lot of sweet spots for entering longs in nifty.
so, i m giving only 3 star rating to my today`s entry ( because in the end it +ve)

But,
it could have been a 5 Star rating if i had only waited for nifty to came near hourly mSAR or at 10 min + n=21 mSAR.

i will try it tomorrow to enter a trade for 5 Star rating.

another good thing, i didnt traded with all my funds today, i kept 50% funds for entering when nifty hits daily mSAR / sweet spot. (looking at dow as of - looks like tomorrow could be that day)

Keep
Smiling

Follow up - of Avoiding Business Media (Internet, Print, TV)

I stumbled across this report of Barron`s,
while going through BARRON`S for US options market data.

read the article and also go through the comments of viewers.

Listen to everybody But take your own decision which should be free from other`s views.


Learn & njoy.

Avoid Media (its brainwashing us)

This I marked that how media spreads fear among the participants of stock market. I am noting here two incidents which happened over weekend of 19th march to 22nd march, but over two different continents. INDIA & USA.
Incident #1.
After closing markets, RBI declared minor increase in REPO RATES, now i am no banker to estimate the effect of this on banks but all the business channels & news sites went ga-ga over this that move will adversely affect the market and may trigger fall. Each and every analyst went on saying that this negative news.
Till Friday 19th march we were in strong but matured uptrend (which started from 11th feb 2010) in nifty – so it was but obiviouis for everybody to say that this move of RBI will trigger change of trend.
Bloomberg (on TV & website) even went on saying that US STOCKS DROP AS INDIA INCRESED RATES....
(i think this is the biggest blunder done by any business media)

http://www.livemint.com/2010/03/21212947/The-impact-of-policy-rate-hike.html

http://www.bloomberg.com/apps/news?pid=20601087&sid=aKsbvRrAaYTE

But to everybody’s surprise on Monday 22nd march 2010, market opened huge gap down,
Than it gave + ORB, than it never came back to that low levels,
And rallied to cover all the losses.
The point is never listen to business channels their views may not necessarily may true.

Incident #2

This one happened in US, from 23rd to 26th march,
While media was clearly negative over health care bill which was supposed to pass on Sunday 25th march 2010, all analyst and Jim Cramer of mad money was confidently saying that if this bill pass than short all stocks on Monday and bla-bla-bla....

http://celebrifi.com/gossip/Mad-Money-Recap-Cramer-Apologizes-for-Missing-the-Rally-Post-Healthcare-CAT-1956427.html

http://www.businessandmedia.org/articles/2010/20100319055725.aspx

That bill got passed on Sunday, and every media was advising to be short, like cnbc.com etc,
DOW rallied.
This again fulfilled my belief that this business channels knows nothing about markets.
They can only tell what’s happening, just like news channels, which reports what happened in past. & can`t foretell - so why listen to them?

Wrong Entry = way to loose money

On 17^th march based on screen watching, I saw a breakout and went long in BN fut. at 9190., but it was in march series, but till 25^th march when nothing happened, I became impatient,

And thought of getting out, but i remembered that i started following system of mSAR religiously, so kept going, but it was expiry so i have to rollover, and I sold BN fut. at 9199, at around 11am. But at that time April fut. was trading at 9210, 10 pts premium than March fut.... now. Let me remind –some flashback of this march-April rollover drama.

Flashback,

After i took long position in march series on 17^th, around 19^th march , i thought of rollover and checked April fut. prices, it was trading at 15 pts discount to march fut price, so i thought its a good deal, without doing anything i m getting  15 points, but don’t know why i didn’t do it at that time thinking of that march fut. will make new high, (read ..Greed)

Time went on & expiry came, and today, its April fut. which is at 10 pts premium, so again without doing anything i lost that 15 pts + 10 = 25 pts..... I wanted to bang my head in wall.

So, i covered march fut & waited for April to cool down a bit, But BN has another plans and it blasted from that level, which it didn’t came again till I’m writing this (30.03.10)

After it went 9588, i decided to throw the towel in & join the party, but i forget that i was entering into trade @ worst time. i.e. on top most lvl , on highest high made by BN.

I bought at 9580 April fut. & it closed at 9435  on the day i bought i.e. at 29.03.10

Today it went till 9598, and closed at 9490. ( -90 pts)

Now system`s mSAR is at  9266, and i had kept 200 pts of S.L. lets c, which one hits.

Update: i sold that on 9455, fearing further loss & 100 pts stop loss hit , on 30^th march 2010.

Update #2 : it rallied back to 9550 on 31^st march.2010.

Lessons Learnt.

1)      Never indulge in greed of 5-20 pts when playing for Big Shots.

2)      Never enter the trade at top channel / near recent high

3)      Always tweak entries near SL/mSAR, so that optimum risk/reward is achieved.

4)      Read today at jagmohanji`s blog.  

Difference between Pro & amateur for Patience

            Amateur= only while losing

            Pro= when profiting (till exit signal)

Power of Concentration & Options

30.03.2010

Today i also marked that when i am writing options (right now 3 strikes written)

I can sense early when they start moving up/down, as they clearly demonstrate that if they are going down than whenever nifty falls, they wont rise as much (puts written) and whenever nifty makes is going to make new high, they will continue to fall slowly.

Yesterday i closed 4900PE OF MAY, at 41 (wrote at 70) and low was 39, which today didn’t breached and afterwards it rallied to 53. When nifty fell by 1%.

Lessons Learnt.

1 always write minimum strikes( more lots of same strike) & keep HAWKs eye on previous days OHLC. Of each option.

2 doing above will help close position at optimum profit.

FOLLOW ON 1^st april.2010

While nifty rose today by around only 1%, all options which rose previously by 20-30%, made fresh lows 40% down(from the price which i covered)

Dont know what happened suddenly, i was busy wathcing BN.

# Never underestimate the power of writing and never let the fear take control your decision for covering it early. Writing trades are 95% profitable , it fails only because of me.

# Never repeat this same mistake again.

Price of Ignoring the Screen.

3rd week of march.

Ignoring the Screen made me pay my approx 30% of profits earn this month.

It was 15.03.10 & nifty was in uptrend since last 12 conseccutive trading days, so correction was expected, 

nifty gave down ORB after gap down, in which SAR (5130) was take out. 

 So, i went short at 5115 (nifty future)

but at the time of closing i forgot that nifty closed very much near my SAR level.

so i didnt do anything on that day.

Than on next day on 16th march 2010 SAR was at 5120 and i simly ignored the fact ,

by telling myself that whenever new position start SAR is always near the buy/sell level  (but thats very much imp for me to manager at 10 min chart level)

on 16th after opening it remained in tight range,

which made me ignore it. but the fact was that it was trading above SAR.

and before i can realise it started rallying ., so i thought its just a small short covering,

 and i made another mistake.

Shorted another nifty at 5137 @ 9.55am,

without thinking of stoploss.

But it never came to those levels. ( It still didnt -  I m writing this after a week on 23.03.10)

and i waited .......... and waited..........but no luck.

Than  on next day also it didnt gave me any chance to cover at lower levels.

and finally on 18th march at 5235 i covered all lots.

with 100 Points loss` on each lot.

This wouldnt have happened if i had kept a close tab on my SAR & 10 min charts.

It took away months 30% profit - which i earned slowly slowly option writing.

NIFTY FUTURE TRADING IS NOT PROFITABLE (ATLEAST NOT FOR ME....)

Comments by real trader on ilango`s blog.

live nifty said...

Hi to all, i am nifty positional trader, my system based on purely demand and supply of the market without using any indicator and always be in a market either short or long. But holding future or stocks for about 10 to 15 days with "sit tight mind set" gives good returns, as we are retail trader our mind habituated to intraday tradting with predicting mind set. Market is divine place where there is a God(psychological mindset of humans). He moves here and there as if we want to make money we have to be a follower of Him, not a predictor of His way.Ilango sir can gives variety of knowledge but as a student we have to pick right system to our personality, that's key success in trading. If we follow a one system, THERE IS A NO QUESTION OF WHERE TO ENTER, WHERE TO EXIT AND WHERE TO PUT STOP LOSS. First of all we have to create one system it contains all rules regarding entry,eixt and stoploss. Do your trade based on your system and put your system one side and gather your knowledge day in and day out. Gathered knowledge should be used for improve your system and not for INSTANT TRADING DECEISION.From my experience intraday trading is more difficult than positional trading because positional trading is equal to school level and intraday is equal to ph.d level without passing school we can't pass ph.d. Psychology,money management and position size is a abcd, all we knows but we ignore it.Just a simple example if want take one lot in nifty, we have Rs.2,50,000 in cash for positional trading( 100 points volatility 2% money management rule). How far we are adhere to this simple rule? I am holding my long from 4810 still now and my sl at 5205. If market trade belows 5205 for an hour, i reverse my positon to short and sl would be 5282. This my positional view. All guys forgive me if i anything written wrong. Happy trading. Thank you,

March 20, 2010 10:30 AM 

 

I had reproduced his comments here for my future reference.

whenever i want to indulge in intraday trading i refer to this post.