- The Cat, the Weasel and the Rabbit
While a Rabbit was absent from his hole one day, a Weasel took possession of it. On the Rabbit's return, seeing the Weasel's nose sticking out, he said: "You must leave this hole immediately. There is only room for one, and it has always belonged to me and my fathers before me." "The more reason that you should give it up now," said the
Weasel, "and leave its possession to me." As they could not settle the dispute, they agreed to leave the question of ownership to a wise old Cat, to whom they went without more ado. "I am deaf," said the Cat. "Put your noses close to my ears." No sooner had they done so, than she clapped a paw upon each of them, and killed them both.
The strong are apt to settle all questions by the rule of might
- The Eagle and the Beetle
The Eagle and the Beetle were at enmity together, and they destroyed one another's nests. The Eagle gave the first provocation in seizing upon and in eating the young ones of the Beetle. The Beetle got by stealth at the Eagle's eggs, and rolled them out of the nest, and followed the Eagle even into the presence of Jupiter. On the Eagle making his complaint, Jupiter ordered him to make his nest in his lap; and while Jupiter had the eggs in his lap, the Beetle came flying about him, and Jupiter, rising up unawares to drive him away from his head, threw down the eggs, and broke them.
The weak often revenge themselves on those who use them ill, even though they be the more powerful
Wednesday, December 2, 2009
Poem - A Poem against Drinking & Driving
A Touching Poem......
I went to a party Mom,
I remembered what you said.
You told me not to drink, Mom,
So I drank soda instead.
I really felt proud inside, Mom,
The way you said I would.
I didn't drink and drive, Mom,
Even though the others said I should.
I know I did the right thing, Mom,
I know you are always right.
Now the party is finally ending, Mom,
As everyone is driving out of sight.
As I got into my car, Mom,
I knew I'd get home in one piece.
Because of the way you raised me,
So responsible and sweet.
I started to drive away, Mom,
But as I pulled out into the road,
The other car didn't see me, Mom,
And hit me like a load.
As I lay there on the pavement, Mom,
I hear the policeman say,
"The other guy is drunk," Mom,
And now I'm the one who will pay.
I'm lying here dying, Mom....
I wish you'd get here soon.
How could this happen to me, Mom?
My life just burst like a balloon.
There is blood all around me, Mom,
And most of it is mine.
I hear the medic say, Mom,
I'll die in a short time.
I just wanted to tell you, Mom,
I swear I didn't drink.
It was the others, Mom.
The others didn't think..
He was probably at the same party as I.
The only difference is, he drank
And I will die.
Why do people drink, Mom?
It can ruin your whole life.
I'm feeling sharp pains now.
Pains just like a knife.
The guy who hit me is walking, Mom,
And I don't think it's fair.
I'm lying here dying
And all he can do is stare.
Tell my brother not to cry, Mom.
Tell Daddy to be brave.
And when I go to heaven, Mom,
Put "GOOD BOY " on my grave.
Someone should have told him, Mom,
Not to drink and drive.
If only they had told him, Mom,
I would still be alive.
My breath is getting shorter, Mom.
I'm becoming very scared.
Please don't cry for me, Mom.
When I needed you, you were always there.
I have one last question, Mom.
Before I say good bye.
I didn't drink and drive,
So why am I the one to die?
- The Eagle, the Cat, and the Wild Sow
An Eagle had made her nest at the top of a lofty oak. A Cat, having found a convenient hole, lived with her kittens in the middle of the trunk; and a Wild Sow with her young had taken shelter in a hollow at its foot. The Cat resolved to destroy by her arts this chance-made colony. She climbed to the nest of the Eagle, and said: "Destruction is preparing for you, and for me too. The Wild Sow, whom you may see daily digging up the earth, wishes to uproot the oak, that she may, on its fall, seize our families as food." Then she crept down to the cave of the Sow and said: "Your children are in great danger; for as soon as you shall go out with your litter to find food, the Eagle is prepared to pounce upon one of your little pigs." When night came, she went forth with silent foot and obtained food for herself and her kittens; but,feigning to be afraid, she kept a look-out all through the day. Meanwhile, the Eagle, full of fear of the Sow, sat still on the branches, and the Sow, terrified by the Eagle, did not dare to go out from her cave; and thus they each, with their families, perished from hunger.
Those who stir up enmities are not to be trusted
- The Fox and the Turkeys
A Fox spied some turkeys roosting in a tree. He managed to attract their attention and then ran about the tree, pretended to climb, walked on his hind legs, and did all sorts of tricks. Filled with fear, the Turkeys watched every one of his movements until they became dizzy, and, one by one, fell from their safe perch.
By too much attention to danger, we may fall victims to it.
A Touching Poem......
I went to a party Mom,
I remembered what you said.
You told me not to drink, Mom,
So I drank soda instead.
I really felt proud inside, Mom,
The way you said I would.
I didn't drink and drive, Mom,
Even though the others said I should.
I know I did the right thing, Mom,
I know you are always right.
Now the party is finally ending, Mom,
As everyone is driving out of sight.
As I got into my car, Mom,
I knew I'd get home in one piece.
Because of the way you raised me,
So responsible and sweet.
I started to drive away, Mom,
But as I pulled out into the road,
The other car didn't see me, Mom,
And hit me like a load.
As I lay there on the pavement, Mom,
I hear the policeman say,
"The other guy is drunk," Mom,
And now I'm the one who will pay.
I'm lying here dying, Mom....
I wish you'd get here soon.
How could this happen to me, Mom?
My life just burst like a balloon.
There is blood all around me, Mom,
And most of it is mine.
I hear the medic say, Mom,
I'll die in a short time.
I just wanted to tell you, Mom,
I swear I didn't drink.
It was the others, Mom.
The others didn't think..
He was probably at the same party as I.
The only difference is, he drank
And I will die.
Why do people drink, Mom?
It can ruin your whole life.
I'm feeling sharp pains now.
Pains just like a knife.
The guy who hit me is walking, Mom,
And I don't think it's fair.
I'm lying here dying
And all he can do is stare.
Tell my brother not to cry, Mom.
Tell Daddy to be brave.
And when I go to heaven, Mom,
Put "GOOD BOY " on my grave.
Someone should have told him, Mom,
Not to drink and drive.
If only they had told him, Mom,
I would still be alive.
My breath is getting shorter, Mom.
I'm becoming very scared.
Please don't cry for me, Mom.
When I needed you, you were always there.
I have one last question, Mom.
Before I say good bye.
I didn't drink and drive,
So why am I the one to die?
- The Eagle, the Cat, and the Wild Sow
An Eagle had made her nest at the top of a lofty oak. A Cat, having found a convenient hole, lived with her kittens in the middle of the trunk; and a Wild Sow with her young had taken shelter in a hollow at its foot. The Cat resolved to destroy by her arts this chance-made colony. She climbed to the nest of the Eagle, and said: "Destruction is preparing for you, and for me too. The Wild Sow, whom you may see daily digging up the earth, wishes to uproot the oak, that she may, on its fall, seize our families as food." Then she crept down to the cave of the Sow and said: "Your children are in great danger; for as soon as you shall go out with your litter to find food, the Eagle is prepared to pounce upon one of your little pigs." When night came, she went forth with silent foot and obtained food for herself and her kittens; but,feigning to be afraid, she kept a look-out all through the day. Meanwhile, the Eagle, full of fear of the Sow, sat still on the branches, and the Sow, terrified by the Eagle, did not dare to go out from her cave; and thus they each, with their families, perished from hunger.
Those who stir up enmities are not to be trusted
- The Fox and the Turkeys
A Fox spied some turkeys roosting in a tree. He managed to attract their attention and then ran about the tree, pretended to climb, walked on his hind legs, and did all sorts of tricks. Filled with fear, the Turkeys watched every one of his movements until they became dizzy, and, one by one, fell from their safe perch.
By too much attention to danger, we may fall victims to it.
Poem - A Poem Against Drinking & Driving
A Touching Poem......
I went to a party Mom,
I remembered what you said.
You told me not to drink, Mom,
So I drank soda instead.
I really felt proud inside, Mom,
The way you said I would.
I didn't drink and drive, Mom,
Even though the others said I should.
I know I did the right thing, Mom,
I know you are always right.
Now the party is finally ending, Mom,
As everyone is driving out of sight.
As I got into my car, Mom,
I knew I'd get home in one piece.
Because of the way you raised me,
So responsible and sweet.
I started to drive away, Mom,
But as I pulled out into the road,
The other car didn't see me, Mom,
And hit me like a load.
As I lay there on the pavement, Mom,
I hear the policeman say,
"The other guy is drunk," Mom,
And now I'm the one who will pay.
I'm lying here dying, Mom....
I wish you'd get here soon.
How could this happen to me, Mom?
My life just burst like a balloon.
There is blood all around me, Mom,
And most of it is mine.
I hear the medic say, Mom,
I'll die in a short time.
I just wanted to tell you, Mom,
I swear I didn't drink.
It was the others, Mom.
The others didn't think..
He was probably at the same party as I.
The only difference is, he drank
And I will die.
Why do people drink, Mom?
It can ruin your whole life.
I'm feeling sharp pains now.
Pains just like a knife.
The guy who hit me is walking, Mom,
And I don't think it's fair.
I'm lying here dying
And all he can do is stare.
Tell my brother not to cry, Mom.
Tell Daddy to be brave.
And when I go to heaven, Mom,
Put "GOOD BOY " on my grave.
Someone should have told him, Mom,
Not to drink and drive.
If only they had told him, Mom,
I would still be alive.
My breath is getting shorter, Mom.
I'm becoming very scared.
Please don't cry for me, Mom.
When I needed you, you were always there.
I have one last question, Mom.
Before I say good bye.
I didn't drink and drive,
So why am I the one to die?
- The Eagle, the Cat, and the Wild Sow
An Eagle had made her nest at the top of a lofty oak. A Cat, having found a convenient hole, lived with her kittens in the middle of the trunk; and a Wild Sow with her young had taken shelter in a hollow at its foot. The Cat resolved to destroy by her arts this chance-made colony. She climbed to the nest of the Eagle, and said: "Destruction is preparing for you, and for me too. The Wild Sow, whom you may see daily digging up the earth, wishes to uproot the oak, that she may, on its
fall, seize our families as food." Then she crept down to the cave of the Sow and said: "Your children are in great danger; for as soon as you shall go out with your litter to find food, the Eagle is prepared to pounce upon one of your little pigs." When night came, she went forth with silent foot and obtained food for herself and her kittens; but,feigning to be afraid, she kept a look-out all through the day. Meanwhile, the Eagle, full of fear of the Sow, sat still on the branches, and the Sow, terrified by the Eagle, did not dare to go out from her cave; and thus they each, with their families, perished from hunger.
Those who stir up enmities are not to be trusted
- The Fox and the Turkeys
A Fox spied some turkeys roosting in a tree. He managed to attract their attention and then ran about the tree, pretended to climb, walked on his hind legs, and did all sorts of tricks. Filled with fear, the Turkeys watched every one of his movements until they became dizzy, and, one by one, fell from their safe perch.
By too much attention to danger, we may fall victims to it
A Touching Poem......
I went to a party Mom,
I remembered what you said.
You told me not to drink, Mom,
So I drank soda instead.
I really felt proud inside, Mom,
The way you said I would.
I didn't drink and drive, Mom,
Even though the others said I should.
I know I did the right thing, Mom,
I know you are always right.
Now the party is finally ending, Mom,
As everyone is driving out of sight.
As I got into my car, Mom,
I knew I'd get home in one piece.
Because of the way you raised me,
So responsible and sweet.
I started to drive away, Mom,
But as I pulled out into the road,
The other car didn't see me, Mom,
And hit me like a load.
As I lay there on the pavement, Mom,
I hear the policeman say,
"The other guy is drunk," Mom,
And now I'm the one who will pay.
I'm lying here dying, Mom....
I wish you'd get here soon.
How could this happen to me, Mom?
My life just burst like a balloon.
There is blood all around me, Mom,
And most of it is mine.
I hear the medic say, Mom,
I'll die in a short time.
I just wanted to tell you, Mom,
I swear I didn't drink.
It was the others, Mom.
The others didn't think..
He was probably at the same party as I.
The only difference is, he drank
And I will die.
Why do people drink, Mom?
It can ruin your whole life.
I'm feeling sharp pains now.
Pains just like a knife.
The guy who hit me is walking, Mom,
And I don't think it's fair.
I'm lying here dying
And all he can do is stare.
Tell my brother not to cry, Mom.
Tell Daddy to be brave.
And when I go to heaven, Mom,
Put "GOOD BOY " on my grave.
Someone should have told him, Mom,
Not to drink and drive.
If only they had told him, Mom,
I would still be alive.
My breath is getting shorter, Mom.
I'm becoming very scared.
Please don't cry for me, Mom.
When I needed you, you were always there.
I have one last question, Mom.
Before I say good bye.
I didn't drink and drive,
So why am I the one to die?
- The Eagle, the Cat, and the Wild Sow
An Eagle had made her nest at the top of a lofty oak. A Cat, having found a convenient hole, lived with her kittens in the middle of the trunk; and a Wild Sow with her young had taken shelter in a hollow at its foot. The Cat resolved to destroy by her arts this chance-made colony. She climbed to the nest of the Eagle, and said: "Destruction is preparing for you, and for me too. The Wild Sow, whom you may see daily digging up the earth, wishes to uproot the oak, that she may, on its
fall, seize our families as food." Then she crept down to the cave of the Sow and said: "Your children are in great danger; for as soon as you shall go out with your litter to find food, the Eagle is prepared to pounce upon one of your little pigs." When night came, she went forth with silent foot and obtained food for herself and her kittens; but,feigning to be afraid, she kept a look-out all through the day. Meanwhile, the Eagle, full of fear of the Sow, sat still on the branches, and the Sow, terrified by the Eagle, did not dare to go out from her cave; and thus they each, with their families, perished from hunger.
Those who stir up enmities are not to be trusted
- The Fox and the Turkeys
A Fox spied some turkeys roosting in a tree. He managed to attract their attention and then ran about the tree, pretended to climb, walked on his hind legs, and did all sorts of tricks. Filled with fear, the Turkeys watched every one of his movements until they became dizzy, and, one by one, fell from their safe perch.
By too much attention to danger, we may fall victims to it
Reagan's policy
'Here's my strategy on the Cold War:
We win, they lose.'- Ronald Reagan
'The most terrifying words in the English language are: I'm from the government and I'm here to help.'-Ronald Reagan
'The trouble with our liberal friends is not that they're ignorant; it's just that they know so much that isn't so.' - Ronald Reagan
'Of the four wars in my lifetime, none came about because the U..S. was too strong.'- Ronald Reagan
'I have wondered at times about what the Ten Commandments would have looked like if Moses had run them through the U.S. Congress.' - Ronald Reagan
'The taxpayer: That's someone who works for the federal government but doesn't have to take the civil service examination.' - Ronald Reagan
'Government is like a baby: An alimentary canal with a big appetite at one end and no sense of responsibility at the other.' - Ronald Reagan
'The nearest thing to eternal life we will ever see on this earth is a government program.' - Ronald Reagan
'It has been said that politics is the second oldest profession.. I have learned that it bears a striking resemblance to the first.' - Ronald Reagan
'Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it' - Ronald Reagan
'Politics is not a bad profession. If you succeed, there are many rewards; if you disgrace yourself, you can always write a book.' - Ronald Reagan
'No arsenal, or no weapon in the arsenals of the world, is as formidable as the will and moral courage of free men and women.'- Ronald Reagan
'If we ever forget that we're "One Nation Under GOD!", then we will be a nation gone under.'- Ronald Reagan
We win, they lose.'- Ronald Reagan
'The most terrifying words in the English language are: I'm from the government and I'm here to help.'-Ronald Reagan
'The trouble with our liberal friends is not that they're ignorant; it's just that they know so much that isn't so.' - Ronald Reagan
'Of the four wars in my lifetime, none came about because the U..S. was too strong.'- Ronald Reagan
'I have wondered at times about what the Ten Commandments would have looked like if Moses had run them through the U.S. Congress.' - Ronald Reagan
'The taxpayer: That's someone who works for the federal government but doesn't have to take the civil service examination.' - Ronald Reagan
'Government is like a baby: An alimentary canal with a big appetite at one end and no sense of responsibility at the other.' - Ronald Reagan
'The nearest thing to eternal life we will ever see on this earth is a government program.' - Ronald Reagan
'It has been said that politics is the second oldest profession.. I have learned that it bears a striking resemblance to the first.' - Ronald Reagan
'Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it' - Ronald Reagan
'Politics is not a bad profession. If you succeed, there are many rewards; if you disgrace yourself, you can always write a book.' - Ronald Reagan
'No arsenal, or no weapon in the arsenals of the world, is as formidable as the will and moral courage of free men and women.'- Ronald Reagan
'If we ever forget that we're "One Nation Under GOD!", then we will be a nation gone under.'- Ronald Reagan
When Genius Failed
WHEN GENIUS FAILED: The Rise and Fall of Long-Term Capital Management
Author: Roger Lowenstein, Publisher: Random House
(Summary of book based on book reviews)
Nobel prizes and billions of dollars don't always equal success
Long-Term's basic strategy was to bet on the eventual convergence between the prices of extremely similar assets.
As an example, if Nifty futures offered a long term contract, say 1 year, then the arbitrage will be between the 3 month and the 1 year futures contract. Sometimes, the difference between the two will be Rs 10/-, and sometimes it may be Rs 12/-. The idea was to use computer based analysis to buy when the difference was perceived to be less and sell when it increased.
Now, making Rs 2/- on two contracts is no fun. There is margin required on two contracts, and, transaction charges, so where is the money? The return is going to be marginally higher than the interest.
In principle, it was a low-risk strategy, with tiny returns on each trade.
LTCM started with $4 billion. Then they took on loans for $100 billion. On the 100 billion, they will make a small amount after payment of interest, but that amount will become large enough on their own investment of 4 billion. LTCM was earning 50% per year on its capital. The 104 billion was used as margin to take on derivatives trades as explained above. LTCM exposure in derivatives was $1.2 trillion.
Now, all of this was working because the trades were almost risk free. Note my use of the word 'almost'.
With this kind of financial leverage even the most minute market move against you can wipe you out several times over. Talk about financial weapons of mass destruction! This risk did not deter Long-Term, though.
Finally in 1998, Russia defaulted on its bonds- many of which Long-Term owned. This default stirred up the world’s financial markets in a way that caused many additional losing trades for Long-Term.
[As an example, a sudden event in India causes the near month futures to fall much more than the far month. If you are short the near month and long the far month, you are in trouble!]
By the spring of 1998, LTCM was losing several hundred million dollars per day. What did LTCM’s brilliant financial models say about all of this? The models recommended waiting out the storm.
That's true, bcause convergence between two similar products was bound to happen at some point. But, if one instrument suddenly went against LTCM while the other one did not go in favor, LTCM was saddled with markt o market losses, increased margin - all on the 1.2 trillion dollars of positions. Where was the money?
By August 1998, LTCM had burned through almost all of its $4 billion in capital. At this point LTCM tried to exit its trades, but found it impossible, as traders all over the world were trying to exit as well.
With $1.2 trillion dollars at risk, the economy could have been devastated if LTCM’s losses continued to run its course. After much discussion, the Federal Reserve and Wall Street’s largest investment banks decided to rescue Long-Term. The banks ended up losing several hundred million dollars each.
What became of Long-Terms founders? Were they jailed or banned from the financial world? No. They went on to start another hedge fund!
WHEN GENIUS FAILED: The Rise and Fall of Long-Term Capital Management
Author: Roger Lowenstein, Publisher: Random House
(Summary of book based on book reviews)
Nobel prizes and billions of dollars don't always equal success
Long-Term's basic strategy was to bet on the eventual convergence between the prices of extremely similar assets.
As an example, if Nifty futures offered a long term contract, say 1 year, then the arbitrage will be between the 3 month and the 1 year futures contract. Sometimes, the difference between the two will be Rs 10/-, and sometimes it may be Rs 12/-. The idea was to use computer based analysis to buy when the difference was perceived to be less and sell when it increased.
Now, making Rs 2/- on two contracts is no fun. There is margin required on two contracts, and, transaction charges, so where is the money? The return is going to be marginally higher than the interest.
In principle, it was a low-risk strategy, with tiny returns on each trade.
LTCM started with $4 billion. Then they took on loans for $100 billion. On the 100 billion, they will make a small amount after payment of interest, but that amount will become large enough on their own investment of 4 billion. LTCM was earning 50% per year on its capital. The 104 billion was used as margin to take on derivatives trades as explained above. LTCM exposure in derivatives was $1.2 trillion.
Now, all of this was working because the trades were almost risk free. Note my use of the word 'almost'.
With this kind of financial leverage even the most minute market move against you can wipe you out several times over. Talk about financial weapons of mass destruction! This risk did not deter Long-Term, though.
Finally in 1998, Russia defaulted on its bonds- many of which Long-Term owned. This default stirred up the world’s financial markets in a way that caused many additional losing trades for Long-Term.
[As an example, a sudden event in India causes the near month futures to fall much more than the far month. If you are short the near month and long the far month, you are in trouble!]
By the spring of 1998, LTCM was losing several hundred million dollars per day. What did LTCM’s brilliant financial models say about all of this? The models recommended waiting out the storm.
That's true, bcause convergence between two similar products was bound to happen at some point. But, if one instrument suddenly went against LTCM while the other one did not go in favor, LTCM was saddled with markt o market losses, increased margin - all on the 1.2 trillion dollars of positions. Where was the money?
By August 1998, LTCM had burned through almost all of its $4 billion in capital. At this point LTCM tried to exit its trades, but found it impossible, as traders all over the world were trying to exit as well.
With $1.2 trillion dollars at risk, the economy could have been devastated if LTCM’s losses continued to run its course. After much discussion, the Federal Reserve and Wall Street’s largest investment banks decided to rescue Long-Term. The banks ended up losing several hundred million dollars each.
What became of Long-Terms founders? Were they jailed or banned from the financial world? No. They went on to start another hedge fund!
Trading is a Slow process of learning
This comment is interesting "Please guide me I love trading so much that now I am unable to work and I hate to do my job.I will be very happy if I am earning so much that it is enough to leave a middle class life provided I am trading.Please suggsest me what should I do.Should I look for a trading job???"
My Notes: It is a pleasure to view such passion for trading. I think the first requirement for a trader is a passion for the proces of trading (not for the money!). But, trading is a slow teacher. Therefore, it is wise to enjoy your exisiting work, do your best there, and work on charts in the part time. Follow only end of day charts, so that you are not distracted during work hours. Identify one or two patterns and focus on trading only those patterns. Once you acquire the discipline essential for trading, you can make a call on your future course of action.
Harsh asks me : could u describe a sucker rally
My Notes: Not really. I assume that Harsh is thinking of the current upmove as a 'suckers rally'.
Nirav says: have read the book named Swing Trading:A guide to profitable short-term investing by Marc Rivalland.
"1. Is there any other book which will give more knowlege about Swing Trading?
2. Is there any book available in market which was written by W.D. Gann or related to W.D. Gann swing theory?"
My Notes: A lot of Indian reprints are offered by Vision Books. Go to their website and you may find more books of your interest. Instead of buying from Amazon, you should kep on searching the internet for Swing Trading and Gann. You are likely to get a lot of information for free. The Swing Traders bible is Streetsmarts by Raschke and Connors.
kk says "IN YOUR RECENT UPDATES YOU USED A WORD "LUCK".SIR I HAVE NEVER HEARD THIS WORD FROM ANY TECHNICAL ANALYST.PLEASE ELABORATE"
My Notes: You take a trade based on your analysis. Your analysis is conceptually correct, giving you a positive expectation. (meaning over a period of time, your profits will exceed your losses). Your trade by trade profit or loss depends on market conditions, but you will emerge as a winner over time.
Now, you take a trade that is conceptually incorrect. But, Luck favors you and the trade works well. Your rewards have come due to a sudden chance, not because of your analysis. If you persist in such trades, the risk of ruin is high. Most technical analysts will offer such incorrect trades. As a matter of luck some of them will work out, and they think they can get away with it, till the big one goes against them. Then of course, they are out of the market of many years. Sounds familiar?
In the same way, when you take properly analyzed trades, sometimes you get a big winner. This is not due to some extraordinary skill in picking winners. It is a matter of luck that you had the winner first, and, probably the losers will follow. The wise trader knows this, and does not get carried away.
This comment is interesting "Please guide me I love trading so much that now I am unable to work and I hate to do my job.I will be very happy if I am earning so much that it is enough to leave a middle class life provided I am trading.Please suggsest me what should I do.Should I look for a trading job???"
My Notes: It is a pleasure to view such passion for trading. I think the first requirement for a trader is a passion for the proces of trading (not for the money!). But, trading is a slow teacher. Therefore, it is wise to enjoy your exisiting work, do your best there, and work on charts in the part time. Follow only end of day charts, so that you are not distracted during work hours. Identify one or two patterns and focus on trading only those patterns. Once you acquire the discipline essential for trading, you can make a call on your future course of action.
Harsh asks me : could u describe a sucker rally
My Notes: Not really. I assume that Harsh is thinking of the current upmove as a 'suckers rally'.
Nirav says: have read the book named Swing Trading:A guide to profitable short-term investing by Marc Rivalland.
"1. Is there any other book which will give more knowlege about Swing Trading?
2. Is there any book available in market which was written by W.D. Gann or related to W.D. Gann swing theory?"
My Notes: A lot of Indian reprints are offered by Vision Books. Go to their website and you may find more books of your interest. Instead of buying from Amazon, you should kep on searching the internet for Swing Trading and Gann. You are likely to get a lot of information for free. The Swing Traders bible is Streetsmarts by Raschke and Connors.
kk says "IN YOUR RECENT UPDATES YOU USED A WORD "LUCK".SIR I HAVE NEVER HEARD THIS WORD FROM ANY TECHNICAL ANALYST.PLEASE ELABORATE"
My Notes: You take a trade based on your analysis. Your analysis is conceptually correct, giving you a positive expectation. (meaning over a period of time, your profits will exceed your losses). Your trade by trade profit or loss depends on market conditions, but you will emerge as a winner over time.
Now, you take a trade that is conceptually incorrect. But, Luck favors you and the trade works well. Your rewards have come due to a sudden chance, not because of your analysis. If you persist in such trades, the risk of ruin is high. Most technical analysts will offer such incorrect trades. As a matter of luck some of them will work out, and they think they can get away with it, till the big one goes against them. Then of course, they are out of the market of many years. Sounds familiar?
In the same way, when you take properly analyzed trades, sometimes you get a big winner. This is not due to some extraordinary skill in picking winners. It is a matter of luck that you had the winner first, and, probably the losers will follow. The wise trader knows this, and does not get carried away.
General - Your Boss Is Really "Boss"
A sales rep, an administration clerk, and the manager are walking to lunch when they find an antique oil lamp. They rub it and a Genie comes out. The Genie says, “I’ll give each of you just one wish” “Me first! Me first!” says the admin. clerk. “I want to be in the Bahamas, driving a speedboat, without a care in the world.” Poof! She’s gone. “Me next! Me next!” says the sales rep. “I want to be in Hawaii,relaxing on the beach with my personal masseuse, an endless supply of Pina Coladas and the love of my life.” Poof! He’s gone. “OK, you’re up,” the Genie says to the manager. The manager says, “I want those two back in the office after lunch.”
Moral of the story: Always let your boss have the first say
A sales rep, an administration clerk, and the manager are walking to lunch when they find an antique oil lamp. They rub it and a Genie comes out. The Genie says, “I’ll give each of you just one wish” “Me first! Me first!” says the admin. clerk. “I want to be in the Bahamas, driving a speedboat, without a care in the world.” Poof! She’s gone. “Me next! Me next!” says the sales rep. “I want to be in Hawaii,relaxing on the beach with my personal masseuse, an endless supply of Pina Coladas and the love of my life.” Poof! He’s gone. “OK, you’re up,” the Genie says to the manager. The manager says, “I want those two back in the office after lunch.”
Moral of the story: Always let your boss have the first say
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