Hi,
Today is 22 January 2010 things are quite calm in the markets though we came down a bit yesterday,but things we not so calm 2 years back.I am referring to 22 January 2008 the day the market fell and fell so sharply that trading was halted because of a down circuit
I am posting this link
http://www.moneycontrol.com/cnbc/videos/livevideo.php?prg=bazzar&dt=2008-01-22
which i want every body to see it today or over the weekend and review your trading decisions that you made pre/post/during that event.This weekend sit down and analyze how you have grown as a trader and what mistakes you made during that time, if you were trading and try not to repeat them in future.
If you were not a trader at that time then this becomes all the more important for you.It will make you prepare for the worst case scenario.One of the basis on which technical analysis is based is that history repeats itself,so do this exercise this weekend its worth the effort that will be required,you just have to watch the show(easier than analyzing the chart over the weekend)
Once you have watched the show.Please participate in the poll that I have added on the right hand side of the blog.I have casted my vote.I found the video to be "funny" and also "i hate business news channel (laughing at my self on how unaware I was....but I was not alone the "experts" were with me....dont forget to look at Satyam results which were flashing ) At that time I was extremely frustrated and a worried man.Watching the video from time to time still sends shivers down my spine.
Some of the wall street wizards believe (and is true as well) that market is all about psychology.
You will see how Udyan/Sudarshan etc are reacting to the panic situation and how the so called experts can go terribly wrong in there analysis.I will watch it as well tomorrow again.Udayan says he will sell his house and buy stock that day(if i remember correctly),I hope he didn't do that,because I made a similar mistake and suffered.What happened after that we all know the market fell another 50 percent from that level some stocks 70- 80 percent.(check Suzlon and Unitech...large cap index stocks)
That makes me mention that you should never try to catch the falling knives.Always know where your stops are and how much volumes you should trade with.Don't ever lose your sleep over trading(on second thoughts its past 1:30 and I am still online....:))....)
Time to sleep.Good night ,Happy and safe trading for everyone
Hey Anuj , very Nice Post . After reading the post I also went back into the times and got the shivers rolling down in my spine as I thought about the horrendous times. It was indeed the most fearful time for Share markets in my memory . Yesterday's fall of the markets was based on results mainly including the L&T results and therefor we could expect a rebound the next week as the upside trend may still continue after getting support at the levels of 4950 .
ReplyDeleteHi indialivetimes
ReplyDeletei check this video from time to time when i feel euphoric in the markets.today the support was found on the trend line connecting June and November lows.but we are still making a lower low and lower high compared to yesterday...so we still assume that we go down on Monday and stay short for the weekend
Cheers
Thank you Anuj. It is a timely reminder when we keep hearing experts saying Sensex at Everest and Nifty on Alps by ....
ReplyDeleteThis reminds us that the same Sensex and Nifty had come down from their earlier peaks in an avalanche burying many dreams....
Thank you once again.
Regards,
S Rajagopal
Hi Rajagopal
ReplyDeletethanks for posting your comments
yes all that talk about Everest and Alps should be left to fund managers...and why shouldn't they talk about that?...they get there salary and bonus based on retail participant's investment in their respective funds.And bear markets and bad sentiment directly affect their pay checks.we as traders should just know where our SAR is,that will do the job for us
Regards
Hi anuj bhai....how r u sir.m waiting to chat and talk wid u.u have really ignited the spark in my mind for learning the TA.not copying any one.to gain my own confidence.as copying is gambling.uptill yesturday,i was following or copying some one.now i m willing to develop my own trading patterns.im am waiting for your kind reply.from where shld i start??
ReplyDeletekind regards....
vicky....
Hi vicky
ReplyDeleteMost important thing according to me is
1) the checklist that will show you the path all along your trading career
2)you need to read the book by William J. O'Neil - How To Make Money In Stocks-its not heavy duty technical stuff,a mix of technical and fundamental analysis,just tells you how to find multi baggers.the book is based on simple logic which is ignored in the markets.
3)Elder Alexander - Come Into My Trading Room
it help you adapt a disciplined approach
4)Jhon j Murphy - Tech Analysis Of The Financial Markets (all about indicators)
TA is not perfect.specially you can just get lost with indicators.Risk management and understanding market psychology is more important than indicators(these are my thought...people can differ on this)
Cheers
yes....u r rgt anuj bhai.understanding market psychology and to cut ur losses is the key to the success.where may i get these books.are they available on net??if yes,could u plz provide me the link.??n ur yahoo messanger id plz sir.
ReplyDeletekind regards....
vicky.....
hi vicky
ReplyDeleteyes books a very popular one
try 4shared.com or google search or pdf search
but i would recommend buying a copy from vision books or ordering it from ebay /amazon
which every way you find convenient.
i am not logged into yahoo during market and even now...i will be available on bolg....in case i miss your comment ....post it in the latest blog post...you will get a reply always
Take care
i will never disturb you while trading hours anuj bhai.infact i have stopped trading from today.i had a conversation wid u last night.then i stopped trading from today onwards,till i gain confidence on my own.i m asking abt yahoo messanger,because i will be asking u questions fequently,and thts gud on yahoo,to save the space .and yes i will order the copy on monday itself.till we get my order delievered,will find them on internet.
ReplyDeletekind regards.....
vicky.....
hey anuj bhai....not trading.read it as gambling from today onwards.
ReplyDeletevicky lets keep it in blog for the time being...i am not on yahoo during markets....my computer runs very slowly if i am using yahoo ...trading and blog updates
ReplyDeletesorry about
you can use as much space you want....even i have this bad habit of writing too much in replies....:)
hahaha....well its ok anuj bhai....
ReplyDeletei hav downloaded these books.will surely read them in this weekend.u r from which city anuj bhai,ur age??
i know i will miss the opportunity of playing 3rd wave.anuj bhai read this blog.this is nirav shah s blog.http://passionatetrader.blogspot.com/
ReplyDeletehe is my friend.
hi
ReplyDeleteok good
i am check nirav's blog
he is coming back?
yes...tommorow he is coming back after 3 years.u know him anuj bhai???n i m not getting the download link for Jhon j Murphy - Tech Analysis Of The Financial Markets (all about indicators)
ReplyDelete.could u plz post the link if u have anuj bhai"??
Hi vicky
ReplyDeleteno i dont know him...he has written in his blog that he is coming.the name of the book is
Technical Analysis Of The Financial Markets
author's name is Jhon J Murphy
you should get the book - for correct spelling and doubts always use google search that will help you in a second(my replies can't match google!!)
HI ANUJ
ReplyDeletei m not able view the clip it jst hanging ..suggest to hw 2 view?
Hi manu
ReplyDeletewell its cnbc site so i cant help much in that case
may be because you don't have high seep internet or computer hardware problems.
you can probably bookmark the link and view it on a different computer at later stage
the video is not important,what is more important is that you prepare a crisis management plan and integrate it in your trading
plan.market can go any where we dont know,no body knows (how you plan your exits and entries in demanding market condition becomes very important for your success in trading)