Mastering the Market? Nope

Wondering with the stint I had have with the market or I say bazaar, share bazaar J. Market itself is the universe where you learn a lot with in yourself. Believe me markets makes you learn so much that you wont ever find out anywhere.

Whatever you are trader, investor, hedger or speculator every one wants their bets (oopss did I used right word) should go right. Everyone wants to be master of market. But you can not be a good trader, investor, hedger or speculator till you really want that you should mastered/ will master the market.

A simple question pop up in my mind “can you ever become GOD?” Nope. You can only become one with him and that happens only when one surrenders the ego. Yes “ego”.  Why we all are so fond of god? Because we know that we can not be god ever. Same way have you ever wondered why do markets have this crazy attraction? I myself getting crazy towards it. Why do people become so addicted to them? The first reason may be the elusive and illusive nature of the market. Whatever we can’t master becomes attractive to us; be it God, market or a beautiful lady!

We want to KNOW the market, something that we can’t do. All the efforts to master the market are driven by our egotism. But one must remember: Market is a place where you become the master through a complete surrender. There is no place for ego here. You accept all the commandments of the market. If you had thought that it would go up and it goes down; accept the fact wholeheartedly without feeling any injury to your ego. Don’t say: how can the market contradict ME! If you don’t accept the markets as they are, you will be left an emotional wreck.

Make one thing sure that you are not controlling the market, Market is controlling you. Up, down, bull, bear whatever be the market your emotions gets controlled by the market. One universal rule I want to mention here is that “Money can not be created in market, it just transferred from one person to other” so for every happiness you have in market, there has to be sadness to rebalance.

Trading in the markets is a journey in self-discovery. You venture out to discover the secret of the market and end up discovering yourself. You discover your impatience, your inner fears, your greed etc. In sum, you are forced to reassess yourself. After all these aspects of your personality are discovered, it is up to you whether you have the guts to come to terms with all the universal human emotions. I don’t say that you will eradicate these from your system. Here also only an acceptance of these will lead to a position when you do not resign to these temptations. The key is to gain objectivity. Courage is not the absence of fear but its conquest. When you are able to withstand your own frailties and become successful as a trader, you will realize that all through your own self was the biggest obstacle and the markets never stopped you from being successful. You yourself were the impediment. Even after this success, you realize that you have still have not mastered the market but conquered your own self. You can even find God through surrender of the self. 

Remember: Market like God is not mastered/its realized.

Know then thyself.

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Trading Rules

 

Starting with the blog on a day when market tank down almost 2% where bulls are outrageously bleeding is always a difficult. Only one thing can make you stay in market, Discipline with simple Fundamental as well as Technical analysis.

Few Trading rules I have came across from different sources:

Although these rules are difficult to practice but you have to think ahead of the crowd.

It is most important to have SL or TSL for your each and every trade.

Question you may ask that my trade always hits the SL and then rise from there on. So problem is not in SL but at the level you are buying your script.

·    Buy always near to a technical levels such as 5sma, 21sma, 50sma, 200sma

·    Put the SL below those levels. Trader (1% to 2%) and Investor (10% to 15%)

·    When I am bullish, I must buy on a rising scale. I don't buy long stocks on a scale down; I buy on a scale up.

·    When I am bearish, I must sell on a scale down.

Always Trade with the trend

·    Stop trying to predict the direction of the stock market.

·    Always first learn the story or conviction behind the movements of the script or market

·    There is only one side to the stock market; and it is not the bull side or the bear side but on the right side

·    Don’t afraid of going short if you are convinced

Do your homework and ready with the resources

·    Most people get interested in stocks when everyone else is. The time to get interested is when no one else is.

·   You're neither right nor wrong because other people agree with you. You're right because your facts are right and your reasoning is right - that's the only thing that makes you right. And if your facts and reasoning are right, you don't have to worry about anybody else.

·    It's only when the tide goes out that you learn who's been swimming naked.

·    Keep your trading diary up to date

Market does not care what you think

·    Focus on the present “Here and Now”

·    Trade only when probability is in your Favors

·    When in doubt, stay out

Discipline comes above everything else

·    In reality, patience is crucial, but it is a rare commodity

·    Trading is not a daily wage profession, where you need to earn every day

·    Quit while the quitting is good and cheap

·    Don’t use your emotions while trading, be a machine while trading

·    It’s good sometime to stay away from the market

·    Too much greed is always dangerous

We will follow the above rules in our Trading. We can never catch exact top or bottom. That’s why I always say maintaining SL or TSL. Always have adequate Margin of safety. Never carry a losing position home. Focus on the trade and never worry about market direction and noise. If profitable, continue the trade with TSL. If not, maintain SL or get out on seeing the trade going against you. That's why I don’t want to give targets and later look like a fool. Markets give sometimes more than you want, sometimes less, sometimes loss or nothing

But always focus on the Net Gain which will make you survive in this market full of sharks, whales and other powerful animals.

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