Three Thoughts

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.

04072014

Nifty opened within previous day range . IR formed. Short on BPB of PDC/IRL on break of PDL. I thought it will run through the fluid below BRN. TP at BRN. Long on BOF of BRN which was a minor PP. As expected met the target PDL, which was also a powerful Flip. Long on BPB of PDL. Then it was just trailing through RN , HOD and PDH. Covered at 7780.

Methodology

A recent webinar by Dr. Brett Steenbarger (part). Listen to it
Methods trump Markets

03072014

Nifty gaped up above PDH. Failed to go above IRH which was NS RN. Short on BOF of PDH on break of PDC/RN. Price suddenly reversed and could not capture anything other than brokerage. Then it was a range move all the day. Went long when  the third attempt to go below the range failed. This one also ended as a scratch.

02072014

Nifty gaped up above PDH and BRN 7700. Went long on BPB of BRN. Covered when price fell below NS BRN. Did not take any other trade as price was ranging with NS BRN and RN 7750 in between.

01072014

Nifty gaped up above PDC. There was a BOF at PDH.Shorted below the MC. Target was PDC.Trade did not work Stopped out above PDH. Skipped the long trade as it was a trade to all time high from where a 200 point fall started. Entered short on a BOF of range high . I expected the trade to run as critical mass was long and trapped . But price bounced back from RN/PDH area. Scratched. Both the trades did not work.