Tuesday, May 16, 2006

>A Small Trading Chat

here is an interesting one.

A: Whats view for mkt tomorrow? I heard your view on nifty went went right yesterday?
Z: Seems some more selling and then some consolidation.. trend looks down over the next few weeks.

A: How come you say for weeks.
Z: this is insight which elliott wave gives. A strong down impulse would lead to one more such down impulse. Though I am not sure.

A: why not sure? if not sure how can u trade?
Z: I am never sure. I just take my chances.

A: So whats ur target?
Z: dont have a fixed target.

A: then where would you cover shorts?
Z: dont know for sure. would look at intraday patterns.

A: Anything to short for tomorrow?
Z: Dont know.

A: You say mkts are weak, cant u suggest one short?
Z: What if my idea fails?

A: Give me one sure shot shorting idea
Z: I dont have sure ideas.

A: How long you doing trading?
Z: Since some time.

A: you cant give one sure trade? If not why not?
Z: Nothing is sure and having traded for long time doesnot remove the inherent uncertainity in mkt moves.

A: Whats "inherent uncertainity"?? talk simple yaar.. tell me what to short..!
Z: means one cannot get very sure of anything in mkts.. my giving a few trades to you wont help you.

A: Why wont it help?
Z: Since 30-50% of my trades fail.

A: What 30-50% failures? Man did u make any money trading? How can u trade like this? In the tips my friends get they guarantee 95% success rates.
Z: My losing trades are small and winners take care of them and give me my profits.
Dont know for 95%.. I have never seen anyone do that.

A: Man.. my friends said you could help me. You only talk confusing.
Z: This is how it is. Nothing is for sure. U have to take measured chances. and take small positions.

A: Why small? I like large positions.. Full thing in/out. Small karke maja nahi aata.
Z: That would slowly lead to capital erosion.

A: Yeah I got stuck 2-3 times. Had to get fresh money in.
Z: ok. spend some time thinking of risk. That may help.

A: Kya yaar, all this risk and all. :(( Give me a few tips, I need to make up my stuck money. help me if you can and if you know how to trade.
Z: Trading is difficult. Making up lost money is even more difficult.

A: then what do I do?
Z: Dont loose money.. play safe always.

A: Yaar safe karte karte kafi din trade nahi kiya... Phir thora kiya and made little...and my friends made a lot on their tips... and when I did large i got stuck.
Z: Hmm.. Trading is difficult.. you also see that. How is your friend doing now?

A: I think they got stuck in this dump. they are also asking the person who gave them tips what to do.. seems all tips have stopped.
Z: Oh ok. mkts are preety nasty stuff. Does shakes up from time to time.

A: What do you suggest? What to trade.
Z: I suggest you take time out to read. Trading can wait.

A: How do I make money yaarrrrrrr..
Z: Preserve your money first.

A: Damn.. waste of time to talk here.
Z: sorry for that.

A: Anyway, What do you suggest to readddddd :((
Z: Something which gives you edge and you can digest.

A: GIve me some name?
Z: read on patterns, momemtun, elliott, and dont ignore risk part. risk is most imp.

A: ok chal yaar.. i cant read so much. thanks for everything.
Z: ok.. see ya.

A: if you got some hot tips.. pass kar dena.
Z: okie.. will try.


Gaurav Varshney said...

Very Nice...

Anonymous said...

Nice illustration. Another sharp downturn and another 10% will be knocked off.

shirsh bhoodhar said...

Real and live conversation of market participants.Everyone thinks that other person is making huge profit.But we all are sailing in same boat.We should look to discover our own way not rely on sombody`s TIPs