There are somethings that you need to know about me before following my ideas & recommendations
Personally i dont feel like a role model that you need to follow or aspire to become — mostly because i havent achieved anything out of the ordinary to be praised about. But there are somethings that i have understood which might benefit you..
1. I understood the stock markets practically first and then i learned the theoretical part. Usually people do it the other way around — but for me i did not have the option to learn the theory first as i had the fire in me to get the trades going. And when i got stuck at some levels i went around & gulped the lessons.
2. This method has given me the flexibility to learn few niche areas in and around options trading, find higher profitable trading strategies & use the probability theory to full advantage.
3. But these may not work for you, and i personally recommend you to learn the theory first & then gets hands on experience. You may not be as lucky as to avoid a mega draw down due to lack of knowledge or ignorance.
4. The reason i provide post mortem analysis is to restrict you from reading my articles to plan for the next day. I would be the last person on earth to provide you a recommendation that wouldnt work. I personally do not like to lose my money on a trade — so it will be double difficult for me to see you lose your money on following my advice.
5. The post mortem report i do daily on bank nifty are just a shoutout of my daily journals, some observations of what i saw, did or missed everyday.
6. Nobody can predict the future right, unless they are gifted. I know i am not. That doesnt stop me from guessing the market direction or getting into a trade. There are only 3 possibilities in every trade i get into… i get my view right & i make money | i get my view right & still lose money | i get my view wrong & lose money
7. I am not a SEBI registered analyst or someone who has the degrees to give you financial advice. Although i plan to get my license soon — because i like to learn.
8. You should also try to time the market & have a view. Your conviction will help you get into good trades, similarly you should have a unbiased view if your trades arent working & try to exit at the best opportunity possible. Sometimes its better to fight another day if you are able to stay alive till then.
9. Everyone says mutual funds are best — yes they are best. They also say you shouldnt try to time the market. What i personally feel is mutual funds are basically for the salaried class who can plan on a systematic investment plan because they get a salary every month. If you are a trader or want to start generating your wealth via stock markets then you should try to time the markets & create alpha. Even if you fail today — your pursuit will help you achieve excellence in the near future.
10. Personally i feel the odds are stacked against the traders to win consistently. The clearing houses, regulators, exchanges, brokers get assured money every time you trade irrespective of you making it out alive. So if you can find a decent broker you can save some money. At present zerodha is what i recommend for a beginner & kotak securities for a professional
11. If you are just starting, its quite straight forward to begin with just 1 stock or 1 index & try to perfect its move & style. This will teach you consistency & finding high conviction trades. Once you master the price action you can spread your research to a broader set of stocks or indices.
12. I usually trade by pledging my stock, ETF or liquid funds as collateral. I try to achieve a 12% return every year and hoping my pledged list of securities will give me a 6. 18% returns YoY is my target — but since i dont have a boss i dont go through a performance or appraisal review end of every year. Even if i make less, more or same — i am happy to be trading.
13. Early on i traded with cash balance and had that guilty feeling when there were streaks of losses. Now since my funds are fetching me a fixed deposit returns of 6% even if i dont trade — i feel like i have a safety net.
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