Sunday, June 24, 2012

Trading is not easy

Last week is really really hectic. I've been reading, reading and reading lots and lots of things. I learned that Trading is not that fucking easy. I thought that intelligence could work in markets and I've been proved dead wrong. I've to caution everyone about trading. If you're an IIM  or Harvard MBA or from Wharton School of Business there is a huge possibility that you could lose lot of money in trading. There is no doubt that you'd definitely be smarter than others. Unfortunately Markets doesn't care a shit about you. That's the beauty of markets. If you ever think that having an MBA from premium school matters in trading, then you'd lose more since your ego would makes you to lose lot more than mediocre traders (like me). I don't have intelligence to have boat load of egos with me. Atleast this could be helpful for me to cut my losses, since I won't be having problem to admit that I'm wrong. But wait, have I done that in my trading. Honestly no! I've waited waited and waited to see some of my stocks going below 30%-50% of my initial buying price. I've to admit that I'm a complete asshole in managing egos. Now after so many tuition fees ( Losses in stocks) I've somehow ( that's true, still not completely) adjusted and cut my losses within 5%. This is really working. I've been saved by big fall. This is true. A trader who takes early losses would sustain for long period of time. I'm amazed when I saw this working for me. I don't care for others. I'm talking only from my point of view. Cutting losses earlier is really really working for me. Now I'm trying to become a trend follower. Initially I was laughing about others who speak about technical analysis (Still I don't believe in lot of technical analysts,since most of them are big failure) and trend following. I learned in a hard way from my own experience. Trend following really works. For that you should concentrate only on fucking price and not about other opinions. Another important thing is shedding ego. This is not taught at B-schools and at least world is not flat as thought by IIMers, Harvards of this world. In Trading everything is same, it would remain same for years to come. Everyone are equal. You could be a drop out, An MBA from world class B-School or a PhD in Quantum Physics,but markets doesn't care a shit about who you're and what is your qualification. It would continuously do what it wants to do irrespective of your opinions. Trading is not easy. Will be continued...., 

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