Hi,
Well it is 21 January and I always remember this day – no not because it’s my birthday/my girl friend’s birthday/my parent's anniversary /neither I got my first job /car or house on this day. I remember it because on this day I got a call; it was a special call, which we all know as the “MAGRIN CALL”.
I am referring to 21 January 2008 the day market crashed and next day it went further down to hit lower circuit, the market was under bear grip and I had no clue of what was happening at that time. This was just a few months after I started using stock and index futures to trade with out knowing the risk and the damage it will cause to my trading account / career
I was in my stage one of trading career ( The Clueless Trader ) and I was gambling in futures (gambling not trading because I was not prepared for the worst case scenario) I was Long in SAIL Futures and made the biggest mistake which all the traders make in early part of there trading career . I was carrying a long position of SAIL Futures although the market was moving against me, I thought let me buy more of SAIL futures as it was good fundamentally, it was already down quite a bit and a bounce was due(all optimistic thoughts or may be to justify my current long position) That will ‘average’ my loss. Next day market went circuit down and I lost most of my capital and till today I can feel the pain of that one mistake.
So after the dust settled, situation was really bad, I knew futures were risky and now most of the capital was gone. So where was the problem? I blamed the market; I said it was random and manipulated.
Nevertheless I decided to continue I wanted to research more and be successful and not to leave like a loser and then I started to gain more market insights and technical analysis came later on. I realize that problem was not with markets or futures’ trading ….problem was with me and the way I traded without knowing the risks associated with trading
That’s all about what happened that day .I will cover more on futures’ trading its advantages and disadvantages (yes it has advantages) soon and other market risks which traders need to take care of. Tomorrow I will post a very interesting link / video that you will find frustrating, surprising and funny i.e. all kind of emotions expressed in one video. So watch out for this space
Cheers
hi
ReplyDelete21,Jan,2008 is for me a memorable day too
Have you recouped the losses,but i dont
Calculators downloaded ,but I am little bit lazy and in your blog itself you can post the values
thanks
bala
Bala
hi Bala
ReplyDeletenice to see your comment here,i was looking for your comment but could not find it in ilango's blog,evening i went out so could not post the market calls in the evening thats done now.
I have also not recovered the loss still but immense knowledge and experience has come.
Profit and loss are a factor of our volumes,because of loss of capital the volumes decline over the period of time thus low profits as compared to pre jan 2008 fall.
posting values of what? if you can specify?
did you check that quote.com link? it gives all values and also i-charts screener is of get use
Cheers
hi anuj sir....
ReplyDeletei too have same situation as u have.i was not trapped in that fall.but i bought stocks at that fall.then till 3500 nifty.i was buying.then started shorting till 2800.then again started buying.then from 2900 started shorting.still shorting.n missed a shorting apportunity yesturday.but only loss is coming.u used perfect word gambler.i m gambling.now have joined ilango sirs blog.and i hope u too will help me to learn.
do u hav a yahoo messanger id or gmail id or can u give ur cell number??
kind regards......
vicky.....
Hi Vicky Sir!!!
ReplyDeleteNice to see your comments..first of all please dont call me SIR (I have not got knighthood form the queen!!,although i would love that!!)..just a joke.please don't call me sir because i don't want to call you vicky sir,Vicky is just perfect.
I have been doing pretty much the same what you did after the January 2008 fall.Ilango's blog is great you will learn a lot from it and fellow traders there.But let's look at the brighter side,now you know that you have been gambling... realization of a mistake is first step in right direction
go to this link
http://financeandtradingmadeeasy.blogspot.com/search/label/Checklist
Download the excel checklist.that will tell you where you currently stand and what lies ahead.Then find solution of your challenges.once a problem is identified you will definately get the solution
you will need to work on that read it every day in morning and at night till it gets in your head
As far as contacting me is concern you can use this blog .I am always there(if net is working)
I want you to develop your own style,copying my style or illango's will still be gambling Vicky.
Use the blogs as second opinions and build confidence in your self.
That should be the approach and thats the right approach
Soon you will be successful,then i will ask for your id and mobile number(i am serious here)
Cheers ...all the best
thanks a lot anuj bhai(is it ok now?)really its nice to see ur reply.it wasreally nice tht u don want me to do gambling(copying ur and ilago sir s style)i want ur yahoo id and mobile number for any help regarding learings.like rgt now,i didnt got abt wht excel checklist are u talking abt??
ReplyDeleteHi Vicky
ReplyDeleteYes that ok,but what wrong in saying anuj (LOL)
got to this link
http://financeandtradingmadeeasy.blogspot.com/search/label/Checklist
or if you can't do that...then go to Labels>Checklist
Or
Check the third post of this blog from bottom.
you will get the post i am talking about
Cheers
great checklist anuj bhai....
ReplyDeletei think i m have crossed first stage...
and i am at second stage.though i hav tried sum characteristics of 3rd stage too.really its a very nice thing.aap plz apna yahoo id do na anuj bhai.my yahoo messanger id is vickyjii@yahoo.co.in
thanks again ...
and thanks in advance for ur yahoo id.will meet u tommorow.bbye...gud night...
kind regards....
vicky...
hi
ReplyDeleteyes great checklist but credit goes to the person mentioned in that post.
yes that is fine some characteristics will over lap,so now you know what situations you will face next,find the solution to those and become a pro trader
Cheers good night
anuj,
ReplyDeletesimple narration but it touches..i started trading..oh sorry gambling in april 2007 and got trapped in May'07 CRR hike crash..i have been gambling till Apr'09 and stopped it finally becoz all my capital as well borrowed capital lost..now in a dilema whether to quit job and do trade full time..i dont know why am sharing this here but after reading your story something pushed me to share this with you..
regards
kr
Hi kr
ReplyDeletenice to see your comment
I also remember May 07 one of my friends suffered then and it was the market run up after that that pulled me to markets ....although i loved the ticker since i was in school(but never trade nor had and idea at that time)internet was not available then. I Have been a student of psychology(not any formal education)...but got a chance to study to while preparing for civil services exams(CSE).Psychology never helped me with CSE but it proved very helpful in the markets.
If i assess your situation here(from psychological point)...i can just say that after all the losses and not able to participate in this one way up market,you are finding it tough to enter again.
Its clearly lack of confidence.More than any thing else you first need to build confidence in yourself
that will come from trading and not sitting out and just watching the market go up or down
you need to be a trader(trade both up or down moves)
so the best(to gain confidence) and safest option for you is Mini Nifty futures(no option trading)...make sure you have enough capital (1 lakh )ie full value of your contract,before you start mini nifty trading.NEVER QUIT YOUR JOB.Find a system that works for you and fits your lifestyle(either swing or positional trades)
Don't day trade.start slow with low volume(but have to trade both up/down move).these are basic things.there are more things to consider
you have to download the checklist(link is above in the main post) that will tell you where your current understanding of market stands,and then take it from there.
Good luck .Stay in touch.Start slow,but start.Make a plan now. don't quit as a loser.And expressing is no sin,it always helps you reducing the weight that you have been carrying on your shoulders.