Listening to Time

Market work…

…has some eccentricities.

One can’t work in the markets all the time.

That’s normal, right?

Well, yes and no. 

At a place of work, one should be able to work. 

Markets don’t always allow work.

So don’t other work places, sure. 

At other times, you don’t feel like doing market work. 

Aha. 

This happens multiple time a year. 

What do we do here?

We create an environment that incorporates this eventuality seamlessly. 

First up, why is this incorporation essential?

Let’s assume that we need to work in the markets all the time. 

When we don’t feel like, and we have to, well, then, we are likely to make mistakes. 

Read mistakes as losses. 

Mistakes in the market translate into losses. 

(Amongst other things), we are in the markets to …

… minimize losses. 

Therefore, when we don’t feel like doing market work …

… we just sheer don’t do it. 

So, back to square one, how do we incorporate this seamlessly?

By making market work our secondary source of income.

Our basic income needs to be sorted through our primary source. 

Now, we can shut off the markets at will without this affecting our basic income. Whether we can also emotionally detach is a discussion for another day. 

There are times when one just doesn’t feel like opening up the terminal. 

Listen to such times. 

Shut out the markets at will…

…only to open them up again when they’re a go for you.

We’re still at step 1, which you’ve just cleared for yourself. 

Now we try and gauge whether times are such that markets allow work.

Listen to such times. 

When you feel like working and markets allow you to work, go all out. Exhaust existing work potential. 

When you feel like working, and markets don’t allow work, do other stuff. Get your research ready. Become poised. 

Sooner than later, your action criteria will be met…

…and you will be able to act. 

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Shutting Down the Manipulator

Markets…

…manipulate. 

That’s their very nature.

Are we in the game to be manipulated?

What’s your answer?

Mine is no.

It’s a pretty emphatic no. 

I’ve backed my no with action. 

How do I stop the markets from manipulating me?

The answer if found in one’s trajectory of action.

Is there anything in one’s market actions that can be easily second-guessed by the market?

For example, is one acting upon plain vanilla technicals?

Is one acting upon news? Results? Announcements? 

Let’s not base our action upon anything the market is doing or telling us to do. 

Period. 

It’s as simple as that. 

With that, we’ve already shut out all avenues for manipulation.

Where does that leave you?

What to do now? 

You must be asking this. 

Well, build your own system. 

Let it expand and explore. 

Let it gain complexity. 

Let it boil the complexity down to simplicity. 

Let your actions be based upon your unique bridges. 

Yes, build your bridges.

Make your own market landmarks.

When you act, nobody knows that you are acting.

If nobody even knows that you are implementing an action, well, then nobody can know what that action is, or how it is implemented.

You’re done already. 

Enjoy your non-manipulable existence. 

I wish for you that it is lucrative!

🙂

Happy Eighth Birthday, Magic Bull!

Hey,

Today, we turn eight.

This is an extreme time.

Extraordinary moves have become normal.

How do we react to a world full of upheavals?

Does anyone have a satisfactory response?

We don’t know, and time will tell if our responses are correct.

However, we do know, that we possess common sense…

…, and we are going to hold on to it for all our life’s worth.

It has not come for free.

It has been earned after making costly mistakes.

It is very valuable.

It is going to see us through.

The topsiness and the turvyness is good for us.

It will set up opportunities.

We are only going to grab opportunities.

When there’s no opportunity, we do nothing.

We have learnt to do nothing.

Doing nothing actually means no entry.

We use this time to do due diligence for the future, when entry is allowed as per our entry criteria.

Doing nothing is a steady part of our repertoire.

However, when opportunity comes, we are going to let go of all fear, and we are going to pull the trigger.

We know how to pull the trigger.

We are not afraid.

Why?

We are debt-free.

Our basic incomes are in place.

Our families are taken care of.

Without that, we don’t move.

We invest with surplus.

We implement a small entry quantum strategy.

We enter again and again and again, upon opportunity.

Because of our small entry quantum, we are liquid for life.

Crash?

Bring it on.

We’ll keep going in, small entry quantum upon small entry quantum.

Don’t forget, we have rendered ourselves liquid for life.

And, we’ve got stamina!

Happy eighth birthday, Magic Bull!

Nath on Trading – V – Make that a Hundred

81). Paper trading has limited value.

82). That’s because money on the line activates your emotions.

83). Is there a holy grail? No. Stop looking for it.

84). Small edges taken to the nth – that’s what cuts it.

85). Most advisories make more money advising and less money trading.

86). Many advisories ignore sheer basics such as risk : reward.

87). Advisories are after commission and management fees rather than your long-term benefit.

88). If you’re lookig for an advisory, look hard, and don’t be afraid to keep rejecting till you find someone who knows the game and is not greedy.

89). Everything is out there, for you, for the taking, on the internet.

90). Most of this everything is free, if you just make that extra effort to get it.

91). Disclosure laws are so strict, that you can get into the un*erp*nts of a management today, literally at the speed of thought.

92). Thus, to play the market, any market, all you need is funds, due diligence and a device.

93). Due diligence gives you confidence to hold the line.

94). Funds need to be saved first. What goes into trading is that portion of your savings which you are not going to need – at all, at best.

95). Your device needs to become a seamless extension of you. Work on your device till it becomes that.

96). The best ideas are born in silence.

97). The best ideas are also the simplest in nature.

98). Sophistication is a net-net loser’s game.

99). If you’re doing it right, and if you’re not a day-trader by profession, trading takes up only a small portion of your day.

100). Life has myriads of avenues, trading being one small such aspect. Being a trader doesn’t mean losing out on life’s countless drawing boards. Trade. Fine. Live too, and live well. Do all-round justice to your opportunity.

Nath on Trading – Basics Win

1). Put yourself out there. Again and again. Take the next trade.

2). Keep yourself in a position to take the next trade. How?

3). Take small losses. Have a stop in place. Always. Have the guts to have it in place physically.

4). Trade with money that doesn’t hurt you if it’s gone.

5). Don’t exhaust stamina. Put trade in place with smart stop that moves as per definition, and then forget it. 

6). Keep yourself physically and mentally fit. Good health will make you take the next trade. Bad health won’t.

7). Have a system…

8). …with an edge, and even a slight edge will do.

9). Keep sharpening your system. 

10). Don’t listen to anyone. You’ve got your system, remember? Sc#@w tips. God has given you a brain. Use it. 

11). Let profit run. Don’t nip it in the bud. PLEASE.

12). A big profit doesn’t mean you’re it. It can become bigger. And bigger. Remember that.

13). What’s going to keep your account in the green over the long run are the big winning trades. LET THEM HAPPEN. How?

14). You exit when the market stops you out. Period. Your trailing stop on auto is fully capable of locking in big gains and then some.

15). Similarly, make the market make you enter. Entries are to be triggered by the market. Use trigger-entries on your platform.

16). When a trade is triggered, you’re done with it, till it’s stopped out, in profit or in loss. Can you follow that?

17). Your trade identification skills are going to improve over time. Get through that time without giving up. 

18). Despair is bad, but euphoria is worse. Guard yourself against euphoria after a big win. Why?

19). Big wins are often followed by recklessness and deviations from one’s system that is already working. NO.

20). Use your common-sense. Is your calculator saying the right thing? Can this underlying be at that price? Keep asking questions that require common-sense to respond. Keep your common-sense awake. 

 

 

 

Stocks and the Art of Synthesis

A lot comes together.

This coming-together is called synthesis.

The word synthesis has now become universal.

It is applied in various fields, including Chemistry, manufacturing and the like.

It is also applied in areas where deep thought boils down facts to unity, to arrive at a conclusion.

What all are we looking at, with stocks?

No action.

Action.

Time-frames.

Market-level.

Selection.

Entry.

Management.

Exit.

One can list other stuff, but this list should do too.

One needs to synthesize the ingredients in such a manner, that the resultant matches one’s risk-profile. [[Why? Matching means successful market-play. Try it out.]]

That, my dear friends, is the art of synthesis, in a nutshell.

 

What’s that other fellow doing?

The human being is nosy.

Maybe curious is a better word.

Problem is, this one characteristic is enough to make one fail in the market.

Curiousity is a good thing. At the right time and in the right area, yes.

Curiousity is a bad thing at the wrong time and in the wrong area.

However, that’s how we are wired. We like to know what that other fellow is doing, the one who is successful. We want to do the same thing. We want to ape the success. Whether we know anything about that other fellow’s field or not becomes secondary.

That’s when the walls begin to crumble.

Know your field.

Develop it.

Be curious in your field.

Succeed in your field.

If you don’t, after trying repeatedly, change your field.

Find a field that you’re successful in.

If one successful field doesn’t fulfill you, develop a second field.

However, just because your best friend hit the jackpot in his field, don’t move over to his field and expect to hit the jackpot too.

Unfortunately, we show that kind of behaviour again, and again and again.

That’s human nature.

A prime example comes from the stock market.

At the end of a boom, the last ones holding the hot potatoes (stocks that have gone up too much) are the “pigs” (retail traders and investors who buy at exorbitant prices after getting lured in by the successes of the earlier parts of the boom), who then get slaughtered. This is common stock-market jargon, by the way. It has gotten so streamlined, because it has happened again, and again and again.

If you’re doing stocks, do stocks properly. Make stocks your life’s mission. Or, don’t do stocks. Period. There’s no in-between to being successful. Success in stocks, like success in any other field, demands your full attention. Don’t do stocks just because the other fellow made a killing in stocks.

Memory is weak.

Give the bust a few years, and a whole new set of pigs launch themselves at the fag end of the next boom.

Right.

Slaughter.

You’re not a pig.

Know your field. Stick to it. Succeed in it. Period.