iCharts Discussions

[veerappan]

hi,
just started this thread....mistakes

people r thinking they r smart [ fools will think this way only]..... we r infront of the system we bought or we sold... we can manage... if rate falls or ups we can get out immediately... like this....

yesterday after long time they got a lessonl [ but costly]......

and extra large posn .... also gone.... these are the major best and worst mistakes people will do ... and they wont stop also....

at any point of time u shd know your loss..... this shd be main thing as per my little knowledge....

guys u can share your views of best worst mistakes....

veeru
chennai boy

[suresh.punjani]

Veera,

Yes u r right. i have made my first trading rule " Decide first how much you can loose" so always have SL right from the 5th second of the trade.

[vkmkc]

[veerappan]

I THIKN U ARE 70 80 YEARS OLD AND U GOT MARKET EXPERIENCE ABOUT 25-30 YEARS

[vkmkc]

[veerappan]

no views...i got very very little experience in the market,,,, just 22 years

[ankur11_11]

with regards guruji ..... i want to share my experience ...... my whole trading life (from 2004) is a book of mistakes .... infact i fear to say which is wrong and which is right .... i earned a lot ..... then recession hammared my portfolio ..... then started trading fut ...... recovered all ..... and then i got confidence .... and i lost most of the profit ....... it has been a nightmere for me .... whenever i came to this conclusion .... that i am right ....or i am confident ....... i was hammered ..... indicators ...oscillators... made my chart a heap of junk ..... none of the theory was stable for me ...... i despaired ....... used to look in the mirror ...there ME was a USELESS person........ i withdraw most of the money and invested on KVP ..... atleast it gives secure return ......

i calmed down for some month .... i realised ...this mkt has a mind ...... a bigger living existence ..... it haunted me ... like it is there to finish me ..... i reverse the condition ..... i started reading myself ..... i am too small ... too fragile in front of the mkt ..... mkt is a ruthless murderer ...and i am a very emotional being ..... emotional .... yes ... this mind makes me emotional ..... mkt always overlooked me ..... mkt did't set any trap for me .... its my mind that sets trap everytime .... me with my crap mind .... together ... i am never going to win ultimately ..... whn my mind is vibrating with the mkt .... i will win .... but the day when mkt will not vivrate with my mind anymore ..... i will loose all .....

That's why i liked your words .... remove your chappal and mind at the door ...... but its too hard ........ tooooo hard ...... only Shiva can help me ...... only in tha calm water .... we see the full moon .... there is no other way out .... a little wave distorts the picture on the water ........ this is what i understood .........
with a STILL and STEEL mind every chart ....every strategy .... will be just fine to be with ....... infact .... with one's mind controlled ..... he will need much less help of these .......

I AM TRYING TO OVERCOME ME ....... THANKS VEERUJI ...... you showed me what i was thinking ........ you are helping me with your existence in the forum ....

OM NAMAHA SHIVAYA

[vkmkc]

[vinay28]

I have been investing in stock market for the last 23 years beginning with 5000 Rs. on Dunlop. Since then, I kept on buying whatever anyone told me (in Bombay, anyone is called "panwalla"). But because I was working, I had no time to study the market or the share, with the result that I still have over 30,000 shares in physical and electronic format of companies which are not quoted for the last many years, thereby loosing lacs of Rs.

I left my job 3 years ago and, though I am an engineer, first studied medicine, which was my childhood love. After that, I decided to start learning about market and started investing to such an extent that 90% of my money is in stocks. I am still making losses but learning from experience. Though I now have a trading software from a reputed broking firm, I have not started intraday trading. Presently, I am buying small quantities of calls and puts only.

Slowly, I intend to do intraday trading also. Though I have not learnt charting or technical analysis, being an engineer, I know a little about mathematical aspects of charts i.e. polynomial equations. That combined with my knowledge of two great numbers of nature i.e. 7 & 9, I am able to calculate values. I have found that I am very accurate about them but not about when they will occur.

I thought I will share my experience since I believe Veerappan has started a very good subject or at least that's what I think was his intent.

Take care and good luck to all!

[opportunist]

I opened my trading account with ICICI Direct in January 2005 mainly to buy ELSS - part of 80CCC investment. No active trading except few random buying and selling of some Helios and Matheson shares. I was so much attached to that company just because the owner's son-in-law happened to be my friend Of course the share gave me some pretty disastrous returns as I held on, bought and sold - all at the perfectly wrong timings First Lesson - What you are investing on doesn't matter. Only thing that matters is how much you make on that investment

All this while I continued a well established career of management consulting with one of the Big 4 global consulting firms. Trading was anyway a pastime. I had obtained an MBA in Finance and Marketing from one of the topmost B-schools in India. Could I be wrong about markets and financial theories? I had passed exams and had good knowledge of Options and Futures. So I was confident that they worked only when we are sure of the greeks (parameters which explained how they move) and they worked only when we are able to set them up in a clever combination like a straddle, butterfly spread or the iron condor !!. Bottomline - I was pretty awed by them. It was only in January 2010 I first dared to buy an option. Always thought they are highly mathematical and complex to handle.. Poooh! they are just like shares simply going up and down.
Second Lesson - Market mein sab nange hai. Background, degree, pedigree sab useless.All you need is simple common sense

After a lot of soul searching I gave up reading fat books on finance. I was finally starting to shed my ego as an MBA. I realised that we come to market as profit makers, not professors. So I dropped my earlier love for fundamental analysis and started learning Technical Analysis. I soon found that how much time I had wasted doing fundamental analysis and reading complicated theories in derivative trading none of which I can execute in the text bookish way. Fundamental analysis may be the right approach for investors but could not be more wrong for traders. Fundamental equity analysis is good for people who can afford to wait like Buffett.

Having said that I discovered soon that technical analysis is more dangerous ''. If fundamental analysis was like playing Golf or fishing in a calm lake, technical analysis was like high wire walking or hunting sharks in high seas. Over a period of one year I lost more than a lakh rupees experimenting, discovering and fine tuning my method. Third Lesson I learnt from this experience- You can afford to lose money - money can be replaced but you cannot afford to lose time since it never comes back!

Now I trade ONLY options on Nifty and Futures on Crude oil. No complicated setup. No fancy strategy. I cast my net when the market is slow and just wait for major support or resistance to break giving me instant returns of 5-7 points. All I focus on is to take home 10-15 nifty points and 15-20 crude oil points home every day/night. The small target is because I have a full time day job and cant devote much time. If I shift to full time trading I will raise those targets. Lesson four - Life is as simple or as complex as u want to make it. You are likely to be happier and more successful in being simple

My trading style has evolved to using a mix of indicators and setups. I use some indicators like Bollinger Band and Moving averages to understand the trend and some levels such as fib and pivots to understand the boundaries within which the prices will move and set up entries and exits. Over time I have concluded that indicators cant predict the future perfectly and I don't search for the holy grail but a bunch of indicators all pointing the same way is often right in my experience, whatever the experts say about them being crutches. So these tools do help reduce my risk. And when in rare occasions they dont work I dont hesitate to take losses at my SLs without remorse.

But then I realised soon that just a method and practice will not do, my broker (ICICI) was making more money than I did. So I switched to Zerodha for Nifty and RK Global for commodities. With cheap brokerage came overtrading. Most often I gained a lot of points but ended up trading too many times and finally making a net loss. That brings me to the last and fifth Lesson I have learnt so far - Know when NOT to trade. If in doubt, stay out

Regards,
Opportunist

[g_kab35]

@ ankur:

only in tha calm water .... we see the full moon .... there is no other way out .... a little wave distorts the picture on the water ........


Feel like reading a poetry.
Well Said!

[vinay28]

Well said opportunist. I would like to believe that I am learning as I keep on making losses. I hope I am indeed learning and one day I will start making good money.

[grizzlybull]

I learnt:

don't go long/short when the primary trend is bearish/bullish.

don't argue, just listen to the market.

use the system consistently to get money in the long term.

don't beat the market, BE the market.

[manass]

1- I was not maintaining the trade dairy with remarks such as right move / wrong move / bad move / made profit/ loss, but since last few months I'm maintaining the same. Good for me, saved a lot, now at a sound position
2-Little Knowldge Is Always Dangerious, so I was looking at here & there, but now I’ve realized & convinced that I’m a blind man with a very little knowledge on SHARE MARKET. So, I’m on the way /road as a blind man who is keeping a WHITE STICK (morning SMS / Live SMS) & crossing the roads/cross roads in the SHARE MARKET & enjoying the rides without any mind setup, but with the prefixed mind set on morning SMS / Live SMS of Veeru
Regards

[beowulf]

I dont have much experience and compared to others here, I am a kid. Here is what I have learnt so far:

1. You should never get too emotional about a particular script. For eg. if you have made lots of money in say SBIN and you exit completely, and it falls due to some reason, we are very tempted to reenter the script and make lots of money again. But now the fundas have changed. Again, if we have lost money in a script, we dont want to enter it again even if it looks good. The name of the company is jsut a black box. MARKET RESPECTS ONLY NUMBERS
2. Maintain strict SL and targets, especially when script is falling. When a script is rising, it is very imp to know the funda of a trailing SL
3. Lot of people loose a lot of money by blindly listening to analysts on news channel. they come and say buy this and that. I used to do it. But we have to remember that they have already taken a position in the script and when we buy they are the ones who are selling. Listen to them but never follow them blindly.

These are some things I have learnt and still learning.

Beo