Tuesday, 9 November 2021
Wednesday, 15 January 2020
SUCCESS PSYCHOLOGY OF WORLD TOP TRADERS
The Top 10 Traders of the World Share Their Stories and Lessons
Success in trading is not a game of luck but requires years of experience. We have compiled a list of great tips from the top 10 investors and billionaire masterminds from around the world.
1. Jesse Livermore
“Do not anticipate and move without market confirmation—being a little late in your trade is your insurance that you are right or wrong.”
Livermore is the author of “How to Trade in Stocks.” In 1929, he was worth more than $100 million, which is almost $1.5 billion to $13 billion, depending on the index you use. He is still famous in the trading chat rooms for making some of the best stock market trading decisions in the history of US Stock Market. His fortune swelled to a whopping $100 million after he sold the stocks right before the market crashed in 1929. His mantra was to play the market only when the factors were favorable. He was a low-frequency player, who studied and truly understood the pulse of the market and other traders.
2. Ed Seykota
“In order of importance to me are: (1) the long-term trend, (2) the current chart pattern, and (3) picking a good spot to buy or sell. Those are the three primary components of my trading.”
Seykota converted a meager $5,000 investment into an unbelievable $15,000,000 in his client account. In the early 70s, he designed and standardized a commercial programmed trading system. He was the first one to emphasize the price action patterns and chart patterns in the trade market. Seykota’s success came from an intense focus on patterns.
3. Richard Dennis
“Trading has taught me not to take the conventional wisdom for granted. What money I made in trading is testimony to the fact that the majority is wrong a lot of the time. The vast majority is wrong even more of the time. I’ve learned that markets, which are often just mad crowds, are often irrational; when emotionally overwrought, they’re almost always wrong.”
Dennis was the “Prince of the Pit,” who made $200 million from $1600 in a decade. He founded the Turtle Traders, a 21 member group that went on to redefine the idea of traders. Richard Dennis and William Eckhart appointed 21 average people and taught them the tricks of the trade. They proved to everyone that success is not something you are born with; anyone can succeed with the right training and mentors.
4. Paul Tudor Jones
“Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead.”
In 1986, Jones predicted the cataclysmic crash of the US stock market. As a result, he made as much as $100 million from the 1987 Black Monday crash. It is one of the largest US stock market decline in a single day. While hundreds of people suffered from the crash of their fortunes, Tudor Jones walked away with millions in his pockets. He offers a very realistic piece of advice to all traders—to walk away from an account that is bleeding money. Sometimes, you’ve just got to cut your losses.
5. George Soros
“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.”
Soros is the Oracle of the stock market. He invested $10 billion on single currency trade in 1992. His profit on the transaction reached an incredible $2 billion. He is still the “man, who broke the Bank of England.” George Soros is a great example of market iconoclasts, who are not afraid to play against the odds, even when the whole world says otherwise. You’ve just gotta go with your gut.
6. Jim Rogers
“Acknowledge the complexity of the world and resist the impression that you easily understand it. People are too quick to accept conventional wisdom, because it sounds basically true and it tends to be reinforced by both their peers and opinion leaders, many of whom have never looked at whether the facts support the received wisdom.”
Jim Rogers co-founded Quantum Fund with George Soros. He has made his billion-dollar empire patience and calm decision making. His trading principles are old school. He does not believe it is crucial for traders to pay attention to the bulk they are trading. It is alright to trade less than your competitors and wait for the one opportunity of a lifetime.
7. Stanley Druckenmiller
“I believe that good investors are successful not because of their IQ, but because they have an investing discipline. But, what is more disciplined than a machine? A well-researched machine can make many average investors redundant, leaving behind only the really good human investors with exceptional intuition and skill.”
George Soros hired Druckenmiller in 1988 to take charge of the Quantum Fund from Victor Niederhoffer. He also made over a billion dollar of profit from shorting British Pound Sterling in 1992. He teaches the aspiring traders that it is alright to have a few losers in the portfolio. A true trader always focuses on the overall risk to reward ratio.
8. John Paulson
“Stock market goes up or down, and you can’t adjust your portfolio based on the whims of the market, so you have to have a strategy in a position and stay true to that strategy and not pay attention to noise that could surround any particular investment.”
John Paulson rose to fame in 2007, when he decided to bet against the mortgage-backed securities. He made a profit of over $4 billion personally, and that convinced the world that he was one of the greatest traders in history! Well, he wasn’t wrong. The simplicity of his trading principle: always buy low and sell high.
9. Ray Dalio
“I learned that if you work hard and creatively, you can have just about anything you want, but not everything you want. Maturity is the ability to reject good alternatives in order to pursue even better ones.”
Raymond Ray Dalio is a hedge fund manager, philanthropist, and a billionaire. He has made the 2018 top 100 world’s richest people list by making the correct investment decision every time. According to Dalio, young traders lose money because they have “an ego sensitivity.” Trading with emotion often leads to losing trades and terrible investment decisions.
10. Warren Buffet
“Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.”
There is no top 10 investor billionaire list where Warren Buffet does not feature. He is the “Oracle of Omaha”—one of the most successful traders of all times. He has given away $32 billion to charity (99% of his fortune). Buffet’s empire comes from a trading style which is all about waiting patiently for the right moment.
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Monday, 12 August 2019
LEARNINGS FROM MISTAKES....
FEW QUOTES TO OBSERVE :
VENI VICI VIDI in Latin phrase "I came, I saw I conquered" first used and & popularised by Julius Caesar
The King of Macedonia " Alexander the Great" said
"There is nothing impossible to him who will try".
"I am indebted to my father for living, but to my teacher for living well".
Here one can observe that both the cases display the valour, the commitment with courage and determination to achieve along with attributing respect to persons contributed to their achievements.
Trading is no less than a war, many times one may lose some deals but ultimately what matters is SUCCESS and the money taken home.
Now the effort is to document everyday trade process and the learnings.
For more than 4 weeks, trying to list out the approach strategies for betterment, taking insights from the mistake.
During the process, developed 5 TICKS Formula for SUCCESS IN STOCK MARKETS
1. TRADE LIKE AN OPERATOR ✔
2 INITIATE POSITIONS LIKE A PROFESSIONAL 👌
3 COVER POSITIONS LIKE AN EXPERT 👍
4 KNOCK THE SCRIP (COUNTER) LIKE A CHAMPION 🎆
5 STUDY THE SCRIP LIKE A GENIUS💕
Tuesday, 4 April 2017
BEST BUYS AND WORST TRAPS
JOURNEY FROM SEPTEMBER 2015TO CURRENT DATE : 03-04-2017
THE BEST BUYS AND THE WORST TRAPS
1. DISHMAN PHARMA: FIRST IDENTIFIED AT 63-68 RANGE MISSED, LATER BOUGHT AT 118 LEVEL THAT DAY FELL TO 106 SOLD AT 114-15 LEVELS
TODAY AT @Rs 323 WITH 1:1 BONUS, ONE LAKH INVESTED NOW 5.38 LAKHS
2. KMC HOSPITALS: BOUGHT AT Rs 3.8 SOLD ARROUND RS 8 WITH IN 6 MONTHS
TODAY AT @Rs 13.5 WITH HIGH @ 16.4,; ONE LAKH INVESTED NOW 3.5 LAKHS
3. RANA SUGARS BOUGHT AT 4.11 SOLD ARROUND RS 9 TO 11.2 WITH IN 6 MONTHS
TODAY AT @Rs 10.35 WITH HIGH @ 17.67,; ONE LAKH INVESTED NOW 2.5 LAKHS
KM SUGARS ( PERSONAL LEVEL BOUGHT AT Rs 1 TO 1.25 SOLD AT 5.37 TO 7.8 THEN AGAIN CAME DOWN TO 1.8-2.2 LEVEL NOW TOUCHED A HGH Rs 37.5 CURRENT RATE 29.3)
4. HIMALAYA INTERNATIONAL: BOUGHT AT Rs 7.8 SOLD AT 11 & 12
TODAY AT @Rs 29.95 WITH HIGH @ 29.95; ONE LAKH INVESTED NOW 3.8 LAKHS
5. BURNPUR CEMETS: BOUGHT AT Rs 9.0 SOLD ARROUND Rs 13-14
TODAY AT @Rs 11.65 WITH HIGH @ 17.5 ; ONE LAKH INVESTED NOW 1.3 LAKHS
6. UDAIPUR CEMENTS BOUGHT AT Rs 11 SOLD AT 18
TODAY AT @Rs 34.95 WITH HIGH @ 34.95; ONE LAKH INVESTED NOW 3.0 LAKHS
7. PANYAM CEMENTS BOUGHT AT Rs 58 AD AT 50 SOLD AT 67 & 72
TODAY AT @Rs 83.5 WITH HIGH @ 88.95; ONE LAKH INVESTED NOW 3.0 LAKHS
8. SANGHI IND BOUGHT AT Rs 57.8 SOLD AT 62&64
TODAY AT @Rs 70.75 WITH HIGH @ 90.75; ONE LAKH INVESTED NOW 1.2 LAKHS
9. RAIN INDUSTRIES BOUGHT AT Rs 27.8 SOLD AT 32 AND 34
TODAY AT @Rs 110.75 WITH HIGH @ 114.65; ONE LAKH INVESTED NOW 3.8 LAKHS
10.BALASORE ALLOYS BOUGHT AT Rs 24.8 SOLD AT 26.8
TODAY AT @Rs 70.75 WITH HIGH @ 77.20,; ONE LAKH INVESTED NOW 3.08 LAKHS
BREXIT FEARS:
NFL BOUGHT AT Rs 27.8 SOLD AT 32.8
TODAY AT @Rs 75.5 WITH HIGH @ 80.95; ONE LAKH INVESTED NOW 2.8 LAKHS
HIMADRI CHEMICAL BOUGHT AT Rs 16.8 SOLD AT 24.8
TODAY AT @Rs 47.5 WITH HIGH @ 49.5; ONE LAKH INVESTED NOW 2.8 LAKHS
PILITALICA BOUGHT AT Rs 3.8 SOLD AT 6.8
TODAY AT @Rs 14.13 WITH HIGH @ 17.8; ONE LAKH INVESTED NOW 3.68 LAKHS
DEMONITISATION FEARS:
HARISSON MALAYALAM BOUGHT 60 SOLD AT 62.8
TODAY AT @Rs 83.75 WITH HIGH @ 95.6 ONE LAKH INVESTED NOW 1.4 LAKHS
JAYSREE TEA BOUGHT 106 SOLD AT 113
TODAY AT @Rs 110.0 WITH HIGH @ 121.5 ONE LAKH INVESTED NOW 1.04 LAKHS
DIANA TEA BOUGHT 16.80 SOLD AT 22.8
TODAY AT @Rs 21.75 WITH HIGH @ 29.65 ONE LAKH INVESTED NOW 1.3 LAKHS
GOODRICK TEA BOUGHT 176.80 SOLD AT 182.8
TODAY AT @Rs 278.60 WITH HIGH @ 306.75 ONE LAKH INVESTED NOW 1.63 LAKHS
IDENTIFIED, WAITED AND MISSED
1. INDIA CEMENTS IDENTIFIED @ AT Rs 80.0 NOW AT 164
2. JINDAL STAINLESS IDENTIFIED @ AT Rs 20.0 NOW AT 77 (BOOKED NOMINAL LOSS)
TEHE WORST TRAP OR BAD LUCK AVON LIFE SCIENCES BOUGHT AT 46 AGAIN AT 36 AND AGAIN AT 28 NOW AT 7.5 ONLY
THERE ARE MANY GOOD POSITIONS RUNNING AND SOME GOOD POSITIONS BOOKED….
Friday, 13 January 2017
TRADING DISORDERS...
TRADING AS A PROFESSION:
Professional experts consider "Day Trading" is an effective tool to make money on the volatility day but amateur retail investors get caught on the wrong foot due to emotional imbalance and lack of understanding of the "Game Plan" involved.
The Online Trading opened many windows of opportunities to retail investors. Many traders prefer Day trading in stock markets as a profession because of the underlying opportunity to make money is huge. The online screens exhibit the trades with rise and fall of the prices in ticker and the colors that stimulate emotions to Buy or Sell instantly to grab the opportunity. The emotional "Greed and Fear" attached to the position when built, generate anxiety and turbulence in the mind and get confused to take right decisions at the right time.
COMMON TRADING DISORDERS:
The Institutional and professional investors wait for the right time to go for shopping in stock markets whose investment research enhances better decision-making process with RIGHT perspective in STOCKS that can do well in future, improve their balance sheets at revenue front & profits part and market capitalization. The Investment decisions in stock markets considered both on Scientific research and Art part is recognizing the “TIME to INVEST”. They have the holding capacity as well loss-bearing capacity and may sometimes write off the loss and search afresh in other stocks.
RETAIL TRADER CHALLENGES:
I)Revenge Trading:
Revenge Trading is a very common practice and done to make money from that counter/scrip. The force of revenge gets generated in the mind as a consequence to the loss incurred due to hasty decisions made in the market volatility. The trader gets emotional rage to the foolish position made and a humiliating failure to enjoy profits triggers retaliation. Many losers as traders do trade with induced insults met and previous wounds stored, strike back with vengeance, also addicted to trade with vigor to prove that they are right and worthy.
The traumatic losing deals are painful and hard to digest. The failure to take right decision bug the mind, pressure build beneath the layers over a period of time. The frustrated mind call for a revenge and retaliation to cover losses from that stock triggers Revenge Trading (study the “Rouge Trader”, a true story of Nick Leeson).
The human Psychology Research Institutes state that the pre-frontal cortex the amygdala responsible for emotional reactions controls the decisions that the trader makes when encountered with an emotional reaction and also regulates the anxiety that shoots up once substantial positions are taken up.
II)Coercive Trading:
Coercive Trader with animal instincts, rule the mind and heart with EGO-centric approach become blind to accept reality, do trade with little reasoning. These traders ignore the warnings, think little on what is being done at the trading, blindly build positions and their ultimate consequences are well known to many.
Most of the times, many traders who lost their control over their positions “pray for the wish” to happen and keep on buying when the price is falling and keep on selling when the prices are rising with coercive nature and argumentative mind. Any size of position against the major trend is a drop in the ocean and simply trying to demand the ticker to do the opposite never happens, seldom prayers get respected those who ignored “The Reality”. This kind of approach even ruined Jesse Livermore (the greatest trader, read the book “ The Reminiscences of a Stock Operator”)
Emotional Compulsive Trading:
Stock trading is a dangerous game for Traders with high emotional attitude get attracted to the magic of Ticker, can become a prey to the market operators. Emotionally disturbed trader lack the situational judgmental mindset, is a Noise Trader (the term first used by Fisher Black in 1986) who is also known a Idiot Trader whose decisions to buy and sell are irrational, confusing, erratic and become a compulsive trader to keep on punching BUY or SELL, doesn’t consider the direction but involves in push and pull off the volume into the system. Needless to mention the results of these traders, may not survive in trading for a long time.
UNDERSTAND GREED AND FEAR:
Professional/seasoned traders get the gut feel, place entry and exit points with a well-defined plan in tune with markets movements. The small-time retail players make their decisions based on some advice, find difficult to deal deep-rooted greed to make instant money in the volatility and fear of further loss influence their decisions but not the rationale, end up winding the capital base. These traders get success less than 5 percent but more than 90% get addicted, continue to create problems to their accounts.
Catch a ROPE:
Result Oriented Planned Efforts-ROPE for better returns as a principle for investing, a well-thought strategy. Market participants unanimously agree that TIMING the bottoms and highs in Stock-Market, a very difficult task anybody can ever achieve. So Institutional investors find their Buying Zones and Selling Zones, instead merely focus on exact right Bottom to BUY and Right High to SELL, whereas retail investors get tempted to CATCH the opposite side for quick bucks, end up in losing wealth.
CONCLUSION: Stock trading is a big opportunity to make money. By the way, understand trading disorders, risks, traps and emotions involved to manage success in stock markets.
A planned approach helps to garner the opportunity and wealth can be created as well.
Friday, 2 December 2016
DEFENCE ORDERS WORTH 2.5 TRILLION!
Manohar Parrikar says orders worth Rs2.5 trillion placed for modernization of defence sector
Defence minister Manohar Parrikar says defence budget is currently about 1.65% of GDP and he would like it to be 3% but it wouldn’t happen overnight
New Delhi: Defence minister Manohar Parrikar on Friday said that orders worth nearly Rs2.5 trillion have already been placed to modernize defence forces under his tenure and this figure would soon touch Rs3 trillion.
Speaking at the Hindustan Times Leadership Summit, Parrikar said there was a backlog of defence orders worth Rs583,000 crore, some of them pending for over 10-12 years.
He said many of these are being cleared but he cannot order as per will as defence budgets are to be taken into consideration. Typically anything brought has costs spread over 5-7 years or more.
The military budget is currently about 1.65% of the gross domestic product and Parrikar said he would like it to be 3%, but he conceded it would not happen overnight.
India has become the world’s fourth largest spender on defence, following a 13.1% increase in its 2016-17 defence budget, according to US research firm IHS Inc.
India’s rise in the rankings from sixth position last year is a result of an increase in expenditure to $50.7 billion, combined with cuts to military spending by Russia and Saudi Arabia, where low oil prices have put considerable strain on their finances.
According to a report released by PricewaterhouseCoopers Pvt. Ltd, India ranks among the top 10 countries in the world in terms of its military expenditure and import of defence equipment—only 35% of defence equipment is manufactured in India, mainly by public sector units.
Parrikar said his target is to bring greater synergies and understanding between the armed forces and defence ministry over the next six months in matters related to procurement and what is required by the forces.
The defence minister also said that the surgical strikes in Pakistan-occupied Kashmir by the Indian Army had introduced a "principle of uncertainty" in the minds of the adversary and did not rule out more such strikes.
“The surgical strikes have introduced a degree of uncertainty... obviously, uncertainty itself creates decision-making bottlenecks. You will never know them,” the defence minister said. “It was a continuous insult to be treated like this... Someone comes, hits us and we can’t do anything.”
Asked if India could carry out more surgical strikes, Parrikar said the “principle of uncertainty” should be allowed to operate. “It will be beneficial to all of us.”
On an attack in Nagrota that left seven soldiers dead on Tuesday, Parrikar said it was obvious that “some sort of lethargy” had set in over a period of time and it was “painful to see soldiers die.”
"We have to thing out of the box," Parrikar said on how to secure our military installations from more terrorist attacks. He said help of agencies like DRDO was being taken. DRDO has been asked to look into various kinds of high tech fencing.
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http://www.livemint.com/Politics/EpJSaDBGYECi221Ul4OYqL/Manohar-Parrikar-says-orders-worth-Rs25-trillion-placed-for.html
Saturday, 27 February 2016
CONSTRUCTIVE INVESTMENT DECISIONS
for
MULTI-BAGGER RETURNS!!
ACTUALLY, NOBODY EVER LIKES TO TRADE FOR A LOSS BUT SELDOM RECOGNIZE THE INHERENT THREAT INVOLVED & THE DAMAGE THAT MAY OCCUR IN TRADING!
TRADER PSYCHOLOGY & EGO GRATIFICATION:
MOST TRADERS THINK, MANY VEHEMENTLY CLAIM THAT THEY ARE MORE SMART AND INTELLIGENT THAN THE REST. THIS BEHAVIOURAL ATTITUDE ELEVATES THEIR EGO AND ENCOURAGE TO GO FOR TRADING TO MAKE “HUGE MONEY” – UNEXPLORED!!!.
RETAIL TRADERS AS WEAK HANDS, STAY LOW WITH SPECIFIC INFORMATION GET TRAPPED DUE TO EMOTIONAL TRIGGERS TO GRAB "BUY LOW- AS OPPORTUNITY" SHALL TRY TO UNDERSTAND BROAD MARKET ACTION
ULTIMATELY, MOST GET TRAPPED IN THIS VICIOUS CYCLE OF LOSING PROPOSITION, THOUGH THEY UNDERSTAND ENTANGLED DIFFICULTIES ASSOCIATED BUT PSYCHOLOGICAL COMPULSIONS TO PROVE SMARTNESS TO EXTERNAL WORLD, INCLINE TO HOOK ON TO THE WHEEL!
WIDESPREAD OPPORTUNITIES & TEMPTATIONS:
TRADERS GET EVERYDAY OPPORTUNITIES TO PARTICIPATE IN DIFFERENT INSTRUMENTS AS TRILLIONS OF DOLLARS WORTH BEING TRADED ON THE EXCHANGES ACROSS THE GLOBE THROUGH VARIETY OF INSTRUMENTS LIKE DEBT, CURRENCIES, EQUITY, GOLD, CRUDE OIL AND OTHER COMMODITIES etc.
THE TEMPTATION TO BUY AT LOW WHEN MARKETS START FALLING WITH AN ANTICIPATION TO BOUNCE AND SELL IN A TRENDING HIGH MARKETS WITH AN ANTICIPATION TO FALL, ADD TO THOSE MISTAKES ADOPT "AVERAGES" AS A STRATEGY SINKS TRADERS CONFIDENCE THERE BY WEALTH EROSION & EXTINGUISH!, EXPLORE & UNDERSTAND HOW DOES EVER MARKETS OFFER PROFITS TO EVERY TRADER?.
ADOPT INVESTMENT STRATEGIES: BUY GROWTH STOCKS
MARKETS FALL NOT BECAUSE TO FALL FOR A REASON BUT ALSO TO DUMP THE LAGGARDS AND SHIFT/CHURN FUND ALLOCATION TO EMERGING SUNRISE SECTORS AND TO CATCH GROWTH STOCKS AT THEIR BEST POSSIBLE LOWER RATES FOR FUTURE THUMPING RETURNS!.
THE FIIs, DIIs & OTHER INSTITUTIONS EMPLOY TAMS TO STUDY, DEVELOP RESEARCH REPORTS FOR A SPECIFIC COMPANY OR A SECTOR IN ADVANCE, TAKE A WELL INFORMED CALL WITH ADEQUATE PREPARATION. THEY “GO FOR A DUMP” OF THE PAST LAGGARDS DURING MARKET SELL OFFS. UNFORTUNATELY, RETAIL INVESTORS WHOSE ROTTEN MEMORY, STUCK WITH OUTDATED IDEAS TEND TO BUY THESE KICKED STOCKS, JUSTIFYING AS YESTER YEAR'S GOOD COMPANIES.
AFTER A PAINSTAKING WAITING OVER A PERIOD OF TIME MAY REALISE THAT THESE SCRIPS WERE SOLD DUE TO POOR FUTURE BUSINESS PROSPECTS TO PERFORM OR A CHANGE IN MACRO ECONOMIC COMPETITION, BUT BECOME TOO LATE AS THE PRICE SINKS TO ITS ABYSS…!!.
CONCLUSION:
HYPOTHETICALLY, ALL INVESTMENTS SHALL YIELD POSITIVE RETURNS BUT NEVER HAPPENS DUE POOR SELECTION!. SO, ALWAYS INVEST IN COMPANIES AS GROWTH STOCKS TO BECOME MULTI BAGGERS OVER NEXT 4-5 Yrs, WHOSE BUSINESS SCOPE IS LARGE, ASSOCIATED & EXPAND WITH BOOM IN ECONOMIC ACTIVITY FOR ASSURED PROFITS TO EXCEL & LEAD IN FUTURE.
RETAIL INVESTORS WHILE PARTICIPATE SHALL TAKE CONSTRUCTIVE INVESTMENT DECISIONS AND KEEP ON INVESTING AT REGULAR INTERVALS THAT BECOMES A "HAPPY INVESTING" BASED ON THE FUNDAMENTALS RATHER THAN MERE "TIPS OR A CHEAP SCRIP".
WHEREAS TRADERS SHALL NEVER TRADE WITH FRUSTRATION OR VENGEANCE, ALSO WITH HIGH LEVERAGE, SHALL CONDUCT A SERIOUS STUDY OF SCRIP LEVELS TO PLAN THE TRADE & ADOPT A STRATEGY TO TRADE WITH CAUTION.
TRADERS SHALL NEVER CONVERT TRADE POSITION INTO INVESTMENT DECISIONS, ALSO NO HESITATION TO BOOK LOSS WHEN STOCK FAILED TO PERFORM IN THE ANTICIPATED DIRECTION. TRADERS SHALL DEVELOP SHREWDNESS TO SWITCH POSITIONS AS OPPORTUNITY ARISES IN THE BROAD MARKET DIRECTION...!!!
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