Trading is just like any other profession like Medicine,
Law, Accounting, Teaching and Engineering . It is all about skill
development. But unlike trading, these professions have an advantage. We can
always conceal our failure and mediocrity there. We can always put the blame on
others and situations .We rarely suffers due to our mediocrity and
inefficiency. Our client or our employer always suffers. Just think about this
for a moment. How many people you know, excel in their chosen professions?
There is no such escape routes in trading. We just can’t conceal
or hide our mediocrity and inefficiency. Our account will shout it louder. There
is no other way but to shoulder the whole responsibility for what has happened.
Have you ever thought why most of the traders fail miserably in markets? Let me
share some random thoughts.
Every other profession has a well defined knowledge base and
curriculum. This knowledge is taught systematically for several months or for
many years. There are evaluation methods like tests and examinations to ensure
that the students have absorbed the knowledge well. Unfortunately, we traders
have no such knowledge base. We have to build it on our own and most of the times
we end up with wrong methods
In other professions, after learning the basics, people
undergo rigorous training under expert supervision. Doctors undergo clinical
practice. Lawyers begin practice as juniors to an expert lawyer. Accountants do
article ship and teachers go for education training.
Trading is the only profession in this world where you read
a book on weekend and start betting big money on Monday.
Finally think about how much money we need to spend on
education to land up in a good profession. We may need to spend several lakhs
to become a specialist doctor. How much we need to spend for an engineering
degree and a reputed MBA?. Here in trading, people are not willing to spend on
education and pay tuition fee to the market. Everybody wants to mint money from
day one.
No wonder, people find it difficult to survive as a trader.
There are no short cuts. Select a method with an edge and get yourself trained.
Be ready to pay some tuition fee to the market.
Exactly the same thought, i have discussed with my close friend yesterday...when he thrown a Q, "How good Trading is, as a profession" .. I concluded saying, it is one of BEST profession in world.. because you got to WIN yourself completely to succeed, against evil emotions... there is no UNDO option here :)
ReplyDeleteRight. trading is the best profession.
DeleteI really enjoy the freedom
ST
Hi ST
ReplyDeleteVery well written. Our equity curve will not ever lie. It will surely tell us where we stand and what the true picture is.
The moot question is: What should be the curriculum??
Thanks
TBP
That is what we are all searching for
DeleteWhat should be learned? Here all of us agree to disagree.
ST
Hi ST,
ReplyDeleteYes, I agree. To add to it, we become more spiritual (not on the religious sense) on How best you are with your own mind. How are you able to control it. How are you able to concentrate on the "Price" alone leaving the noise aside. How is your "EGO" when trade goes against you. How fast you are able to forget the past and move on with the "PRESENT" (price). "Acceptance" of wrong trade and sticking with "Discipline" is the best lesson one can get in order to grow up in this profession.
In my humble opinion all these issues are only symptoms.
DeleteThe root cause is our inability to accept the uncertain nature of the market
We fear the unknown and our mind perceive uncertainty as danger.So our unconscious override rational thoughts to avoid uncertainty and ambiguity.There is only one solution.Train your brain till it start trusting what you do is in the best interest. Once it happens all these problems will disappear on its own
ST
ST
Sir
DeleteVery true.
Acquire the knowledge, select the method/system with an edge, and then train your brain.
URD
ST,
DeleteYes, Inability to accept the uncertain nature of the market is the key thought which is also shutting down many people venturing into it. whenever I say that, I trade for living, there is def a sense of dis-belief and this puts a tough mark on my conscious too... I am yet to overcome this stage.. Do you recommend any thought process on which I can develop this ??
Thanks for your help.
GK
To quote Robin Sharma:
Delete"The seduction of safety is more dangerous than the perception of uncertainty.
The perception of uncertainty is always less dangerous than the heartbreak of complacency."
Regards,
KSG
Very well said!
ReplyDeleteThanks
DeleteST
On the lighter side, some 5/6 years ago there used to be a joke going around in one of the forums. ".... if surgeons learned their profession like traders then there would be dead bodies all over the place! :D
ReplyDeleteSS
DeleteNice one :)
I read somewhere that 80% of the population are not experts in their chosen professions
This is applicable to all walks of like Doctors,Engineers,Teachers and Lawyers.
Pray that you do not end up consulting someone from this group when in need
ST
Simple but powerful article. Article's like his will definitely give confidence to the traders. We need this type of regular health checkup from the doctor(ST).
ReplyDeleteThanks
DeleteGlad you did not tell "Physician, heal thyself "
ST
yes, ST, the 80/20 "rule" applies in all walks of life. In my neighborhood there are like a dozen vada pav vendors but only a couple of them are doing good.
ReplyDeleteTaking this point on a galactic scale, are we human beings the 20% in our Galaxy?
Anyway, that's a philosophical question!
Nice to see so many traders taking up dp trading and all thanks to you and your efforts.
Regards,
SS
DeleteNifty Nirvana became popular only because of you.
You saved this blog from premature death by providing much needed Oxygen, "Readership"
Thanks a lot
ST
Sir
ReplyDeleteI have posted a sort of quiz on my blog about the dilemma of entering into a trade on BO or BPB. I request you and other blog readers to visit the http://charttechnicals.blogspot.in/ and participate in it if you feel its worth.
Sir, I would request you to hold your opinion/feedback till you feel others have participated enough as I would like to conclude it finally with your opinion/feedback.
Thanks.
URD
Right
DeleteST
ST sir,
ReplyDeleteReading your blogs is such a wonderful insight and entirely new approach,appreciate your systematic approach to reply to all the comments and enlightening us always ,keep up the good work,I have ordered for YTC book and waiting to read it,
Joe
DeleteThanks for the visit and comment
ST
Good Post ST.
ReplyDeleteOne query, what is your view point on some people comparing trading with gambling? How are they different?
Thanks,
Allwin
Gamble is a risky action in the hope of a desired result
DeleteWorld is progressing because a few dare to dream and gamble.
Every product is a gamble
Every business is a gamble
Every research is a gamble
Every idea is a gamble
Gambling is not a dirty word. Proud to be a gambler
ST
Hi Allwin,
DeleteFor further reading, please go through the comment section of June 17, 2014 post (17062014). You may find the replies of ST Sir and others to a similar question to be of much relevance.
Regards,
KSG
In other professions its not that difficult to move forward by hiding your mistakes from others but in trading you wont be able to cheat yourself for a much a longer time. Market would pullout the dead from the closet.
ReplyDelete>>trading is the best profession.
Complex too till you climb all the slippery slopes... :)
------
Mathew
Mathew
DeleteMany traders have unrealistic expectations.I know a few high net worth traders trading 9 digit capital.
They just want to make something more than the risk free bank deposit interest. They consider 24% PA as a good return
Let us do some calculations
Capital 100000, 24% PA 24000, Per Month 2000, Nifty Points 40
If you can capture 2 nifty points a day after commissions you make 24% on your capital
But we are not satisfied with even 500 points a month. Trading 2 Lakh capital people expect to live like Mukesh Ambani
ST
ST,
ReplyDeleteVery true!!
In fact, I tried your method last year for a week or so, but I was not successful mainly because I was taking your BPB, BOF, BO, TST, etc literally without thinking about the location, space, order flow, etc. Moreover, there is(was) a perception that day trader do not make money but real money is in swing/positional tradeing. Then I moved to swing trading (SAR method) seeing my profits made in trend days taken back by the market in range/choppy days hitting DH/DL. But what I gained was screen time. Then I got fed up with swing trading and checked back your blog again. Read your e-book and read your blog. Started trading with 1 lot about a week ago. Now, DP trading is making more sense.
To summarize, even with focused efforts, it needs screen time to get feel of the market and making execution and trade management better. As a novice, we all expected to learn trading within a weekend and start minting money within a month, but reality strikes. Most of the books are not based on reality and so most of the traders leave the field. The lucky ones who get your knowledge and guidance still need the screen time to earn profits. There are no short cuts.. we all need good theortical knowledge and on-the-job training under expert guidance... Many thanks to you for starting the DP cult and making people adopt day trading for living and providing financial freedom... ...
Vikram
DeleteThere will be a million ways to day trade the markets successfully.
But what ever method you trade, it is basically a decision making process
In the beginning you will make much more wrong decisions than the right ones.This will change as you gain experience.Once you start making good decisions than the bad ones, your trading will turn around
Please don't call this DP "Cult". I hate them
http://niftynirvana.blogspot.in/2012/11/trading-cults.html
ST
Point taken!
DeleteThis comment has been removed by the author.
ReplyDeleteWe want Salary (profit) from market on first day of Working (Trading). we dont wait at least for a month end . there is no ROCKET science in trading .
ReplyDeletefor ex.- We learn 10 +2 + Graduation + PG + Apprentice =JOB . then whole month work & after we get salary . there is tooooo long process for it . same as it is in bussiness,sports,acting,singing..etc.
But only trading field we want immediate result from first day of trading ,how it is possible ? then we blame for system,market..etc.
Patience is key to success.
PPMMP-Perfect Practice Man Makes Perfect . .
Thanks ST
Dear ST,
ReplyDeleteAnother very nice article, thank you.
The tuition fee we pay will be directly proportional to our effort IF the right system is found. Here with DP trading we have that advantage , we have a great system and to add icing to the cake we have a great mentor/teacher. All we need to do is put in the time and effort.
Hi ST
ReplyDeleteWant to know how different is NiftyNirvana from Lance Beggs' material?
If we get everything here, how would Lance Beggs' material add on??
Thanks
TBP
TBP
DeleteI learned how the market functions from Lance
The method other than the three trade patterns differs
He trades a structure of higher time frame S/R where as mine is DPs
He try to trade trend where as I am trading ranges.
He monitors three time frames. I look at only 3 M
He is more of a scalper where as I attempt to capture whole swings
He monitors candle patterns. i don't do
His method is built for 24 Hr market. My method is suitable for day markets
In short different vehicles but the chassis is same
ST
Thanks ST
ReplyDeleteHi ST,
ReplyDeleteYou some where mentioned you subscribed stockbee paid portal.. what is your personal view. Is it worth ???.I am basically swing trader .... Indian stocks..Is it worth if i paid that much money for yearly subscription ? and he is trading only US stock...I appreciate your response
Paid subscription is not worth unless you are trading US markets
DeleteST