some trading finer points

dear balu,

I am smiling big time couched in quilt in my bed in front of tv in shimla this bright and sunny morning made to glow even more with such warm words.....said and implied.

.....thank you......

I wish you guys don't lose because of me.

I am learning and markets keep throwing me down quite often.only, I have learnt to survive by,

1.improving my trading system non stop,

2.keeping enough buffer funds to ensure holding capacity,

3. having enough funds to buy or short more when I am losing but system is hinting pro me status,

4.keeping emotions to minimum and practicing emotional 6 packs......a few more which I will recall later perhaps......trade very cautiously.....

5.trading very less (at least trying to).....neither under trading nor over trading.....as you might have noticed, you don't need to generally change direction more than 1 to 2 times in entire series.....one you get the direction right all you have to do is keep skimming

......lack of holding capacity, lack of self confidence due to lack of faith in trading system, lack of courage and money to commit more capital during deep adverse situations, lack of emotional stability are some of the prime reasons for not making it despite being in the journey for years.....what you see as "only profit"result card is actually the result of facing and overcoming hell like situations to filter them out, survive them and  coming out of even them with something in bruised hands

dilemma of buying when premium is high

dear dheeraj,

whatever is at premium has good value....

also, when u will sell, u will get good part of premium back. premium will not become zero at the blink of eye.

plus, high premium indicates that somewhere in the series market will enter a range.....that helps in trading (ranges). you interpret technicals accordingly, in that light.

i am more jittery buying when premium is too low. generally i avoid it.

my views

see, i can't bet my life on that. i can be wrong. 

but my technical understanding says uptrend is theoretically ON and downtrend signal is OFF. there is no downtrend signal as of now.

while practically it is slipping and threatening to fall, there are some clear hints that it may go up smartly in 1-2 days. 

pl don't follow me or anyone blindly. i may be wrong. and as already mentioned earlier also, i have sufficient backup funds and plan B. i trade on probabilities based on my trading system. 

i therefore trade without stoploss which might not be acceptable to others. pl take my sharings only for study/critical analyses/corss reference. pl use ur discretion.

one has to be bold and risk taking to make money. how much and how, is a subjective question. trading is fortunately not spelled "gambling"