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Old 14-07-2016, 11:55 AM
oilman5 oilman5 is offline
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Default obituary of a trader

Hi Friends,
we know every thing has to come in an end. This is FACT of life . We are born ,grown up, earn -do some luxury, teach some one -then slowly diminishes. After an age,there is retirement, we may become fatalist,may live in nostalgia.
Yes Traders have sharpest brain with SURVIVAL instinct. but with TIME ,we must say- LET THE YOUNG WIN.
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Old 14-07-2016, 12:30 PM
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In my past, i was enthusiastic about market,that from 1991-2000 era:-a flop show for 10 yr. WHY ?? - i think my chess playing past,- tells WINNER NEVER QUIT & QUITTER NEVER WINS. so with the help of real professional help(not the snake oil vendor seller) - i learn to trade, and 2002 onwards on various timeframe i made earning trade.2004 is very good for me -both dn and upswing. 2005 - i use short term aggressive trade.
Tradingacademy, meta-formula dot com teach me , many a nuisance of trade.
Sandeep Wagle -a TA trainer, Vivek Patil ,Vasudeo of stockmechanics , Dr S Joshi, Hiteshji, -all Mumbai based, are some of the respected name.
In traderji- 2006 -07, on regular basis i have given some highly profitable set up.
Later i switch to learn Fundamental , and combination is good, but also the TRAP of blockade, so is bigger hit .
Here CV aka JJ is one of the rare brilliant trader, another is Ashish Roychowdhury from Calcutta.
As the market evolve, we earn or loss to learn -THAT DIFFERENT TACTICS TO BE DEPLOYED NOW.
WORST THING IS if u get bored. ( trading should not be in excitement ,i agree)- u lose the gen interest in life, particularly after some edge ,- u may lose all charms , even the interest to do exercise.
Slowly it eats us.
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Old 14-07-2016, 12:47 PM
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In later part of life , u will realise- EVERYTHING IS MAYA, what for i will do?
LET NO MORE BE PASSIONATE. AS per Jainism -mokh- choice of nirvana.

.................................................. .
u know a novice learner has no problem ,- because of early failure they believe -GRAPES R SOUR.
failed trader has no problem- they become trade trainer, letter writer/call giver.

Thats why -maintain a purpose of life is very imp.
.................................................. .....................................
so here is trader who traded successfully about 14yr , mourning for his once successful past , - giving the hints : its winner stay, long live the TRADER
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Old 14-07-2016, 02:08 PM
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SEE how a NANA plays with a child,- shear nostalgia,- he may not have given that time to own kid, but kid's kid get priority ,- really enjoy each others' company unless a bragging fool. Chhorna shikho- enjoy as nobody, u will get another fulfillment of life.
Recently i have a plan to give half of my money ,to wife - other to daughter , so as ordinary mortal i can pass.
I am losing a position, since i am short-SO What?
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Old 14-07-2016, 02:18 PM
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Freedom from commitment is now i enjoy. Also the Nature, rain -the sea & hill.

suppose i guide a new comer to right way of trading- it should be psychology. Build up of adaptability, quick reflex, strong risk management.
Then -visualization, to see repeat of particular set up, ofcourse sentimental analysis.Habit of searching opportunity on EOD basis. Believe in STOICISM, preferring fixed position size.
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Old 14-07-2016, 04:07 PM
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Proper order of theoretical learning for trading
.................................................. .............
1} its not the price ,but expectation build up in price we trade.
2} Fundamental is logical ,but rarely justified in market,apart from marketing.
3} more u think on market -WHY, more complex it will be in first 5 yr. Instead learn to flow with price,-price has random,mean reversion,as well as Continuation factor. Nobody knows which one will RULE in near future.
4} ALL the socalled analyst, both TA-FA r for selling their products, rarely knows abc of trading.Real trader knows a lot, can ACT ,can take RISK, r well adaptable as per market.
5} IN the game of trading,learning takes TIME ,as its more a realization on MARKET, price, SELF,own system , sensing danger and remedial measure.
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Old 14-07-2016, 07:17 PM
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Can someone , please publish a book like " A Guide to understand Oilman5's Obituary of a trader"
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Old 15-07-2016, 12:43 AM
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Originally Posted by Sunshine View Post
Can someone , please publish a book like " A Guide to understand Oilman5's Obituary of a trader"

Is Oilman5 a robot ( posting ) ?
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Old 15-07-2016, 07:27 AM
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IN the game of trading,learning takes TIME ,as its more a realization on MARKET, price, SELF,own system , sensing danger and remedial measure.

MARKET,- WHO R THE PARTICIPANT, how much they may allocate fund , whether they r comfortable with present volatility
price,-can u decipher it?what is expectation build up in near term,u must believe this can change easily . So if u r hrly chart trader(primary decision making timeframe), u have to SEE after every HR, whether it has been changed or not.
SELF,- do SWOT every month, as u can be changed. Trading is a solo game.(rush to any site including this one, is attitude to BIRDS OF A FEATHER,FLOG TOGETHER )
CONFIDENCE,LIVING WITH UNCERTAINTY,YET SKILL TO EXECUTE WITH QUICK DECISION MAKING ATTITUDE -BE UR NATURE
u should not be easily influenced by media, be ur own boss in mental level
own system,- very tough thing,most imp tool to trade,its ur spectacle,the glass to see world, mine wont fit u. BASED ON UR UNDERSTANDING OF MARKET,DEFINING OPPORTUNITY ,DANGER,UR COMFORT- UR ENTRY/EXIT/STOPLOSS RULE/POSITION SIZE
EXECUTION SKILL-(A)SENSING OPPORTUNITY & GRAB IT
(B)sensing danger and remedial measure.
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Old 15-07-2016, 10:23 AM
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You don’t have to be a trading novice to make mistakes in the financial markets. In fact, experienced players do dumb things all the time, despite knowing that things turn out badly when their discipline falls apart. The best we can do after committing an error is to take corrective action and swear it won’t happen again. While that’s improbable because we’re imperfect humans, hard-wiring an awareness of these 10 common mistakes into our trading brains will go a long way toward helping us avoid unpleasant incidents:

Chasing Tops/ Bottoms

Traders devise all sorts of ways to take money out of trending markets and then lose it all trying to picktops and bottoms. While there are strategies that work well near potential turning points, many of us just throw money at a security when it feels too high or too low, forgetting that trends can persist much longer than expected. Avoid this mistake by focusing your full attention on the meat of the moveand standing aside in range-bound markets. (To learn more about trends, see: Technical Analysis: The Use Of Trend.)

Over-Leveraging

Many small players try to act like big players, betting the store on each position, hoping to increase their limited stakes. This is a huge error and great way to wash out of the financial markets. Utilizeleverage only when the reward-to-risk ratio is lined so perfectly in your favor that it’s foolish to trade a smaller-sized position. This rarely happens, so margin should be applied just as rarely, while you focus on protecting core capital at all costs. (For related reading, see article: Leverage: What It Is And How It Works.)

Staying Too Long/Leaving Too Early

Many traders lack effective exit plans, getting out at the worst possible time or missing a good exit and turning a trade into an investment. Remedy this error by drawing up a plan that details specific technical conditions in which you’ll cash in your chips and hit the sidelines. This plan also requires aholding period that dictates how long you’ll stay positioned under ideal circumstances. Once this plan is in place, spend a few years working out the kinks because it will take that long to master the details. Get a leg up on this process by getting familiar with simple and effective exit trading strategies.

Listening to Pundits

Gurus and pundits overload the financial media, confidently pointing to charts or spreadsheets that espouse seemingly perfect opportunities that have little chance of failure. So why not just take their trading advice, rather than building your own ideas and strategies? First, these folks are often talking their book, sitting in positions that need a boost, and are hoping to reel in a few fish while on the airwaves. Second, many talking heads make their living by selling software or subscriptions, not taking money out the market. Third, if you execute someone else’s perfect trade, you’ll have no idea what to do when it doesn’t act perfectly.

Trying To Get Even

Trading confounds its participants because it’s one of the few industries in which being wrong with regularity is part of the business plan. This becomes a critical issue when taking draw-downs because negative emotions can shift our focus away from the numbers game and into a hunt for survival or self-esteem. This shift naturally directs one's focus to damage done and the profit required to eliminate the red ink and its associated pain. In turn, this draws us even further from strategies that require exits based on price action, rather than the need to hit a magic number or give oneself a pat on the back.

Ignoring Trend Relativity

Markets trend higher or lower around 20% of the time on average, grinding sideways in ranges for the other 80% of the trading day, week or year. Traders fail to comprehend this trend-range axis, jumping into all sorts of nonexistent momentum plays that are banging around between support andresistance levels. Overcome this error by examining trends in three time frames before entering a position. Short-term traders can focus on 60-minute, daily and weekly charts while market timers set their sights on daily, weekly and monthly charts.

Lottery Tickets

Trading is an effort to capitalize on market structure, using mathematics to uncover securities that show predictive directional signals and ease of movement between intended entry and exit levels. So why on earth do traders buy lottery tickets ahead of market-or-security-moving news when they have no data showing the odds are in their favor or likely to produce the desired outcome? Of course a gambling mentality is to blame, with players tossing the dice and looking for the big win in the same way that grandma does when she heads to Atlantic City. This mindset has no place in a disciplined market approach and is a nearly guaranteed ticket to disaster over time.

Being Too Early/Too Late

This error occurs when you hear market-moving news and trip over yourself to jump into a position without doing your homework. Every setup has a perfect price and time, but the elements rarely align, giving you plenty of opportunity to be right but still lose money. Find the perfect balance by running potential trades through three timing filters before taking on risk:

Examine the security in three time frames to gauge trend relativity.
Look at relative strength cycles using weekly Stochastics (See article: Weekly Stochastics To Time The Market Effectively)
View the security with an accumulation-distribution indicator, like On Balance Volume (OBV). (See article: On-Balance Volume: The Way To Smart Money.)
Having A Bullish/Bearish Opinion

Traders can’t afford to have opinions because profitability depends on mathematics, not ideology. While it’s natural to have your own perspective on central banks, precious metals and a hundred other talking points, the best trades set up against popular opinion and you’re in the wrong business if you fail to pull the trigger because it doesn’t match your belief system. Instead, become an observer of economic and political conditions rather than a participant and your detachment will pay off with opportunities you couldn’t see in your highly charged emotional state.

Ignoring The Big Picture

Seasonality, options expiration, rate decisions, and spiraling currencies all impact the ticker tape, often generating unexpected price action that forces the majority to take losses. Despite endless macro-influences, many traders insist on playing a single price chart in a vacuum, falsely believing it has magic powers to make them money. In truth nearly all instruments follow the leaders when markets shift into highly correlated behavior because, at the same time, capital rotates into broad-based derivatives that move thousands of world markets in lockstep.

The Bottom Line

It's natural to make a few mistakes each day because trading requires a thousand real-time decisions. We can limit the damage by internalizing the 10 most common mistakes and adding protective technical filters, like multiple time frame and relative strength analysis, into our daily market routine.
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