Derivatives - Traders Thoughts - By Mani in MARKETS - I am going to pen down my thoughts as a trader in this thread. You can make your own new ...
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Traders Thoughts - By Mani

  1. Traders Thoughts - By Mani

    I am going to pen down my thoughts as a trader in this thread.

    You can make your own new thread in this forum, if you want to share your thoughts (with similar thread title)

    Dont be in Stock Market because you want to make more money

    Be in Stock Market because you love to be a part of it

    Building wealth is just a by product for those who love Stock Market
    5% a month - path to becoming richest man

    If that sinks in, you can be a much better trader

    Start with 0% or low returns and work your way up slowly to make more.

    We dont jump into deep waters, as a beginner swimmer

    We dont look to drive at 90 Km/Hr as a beginner in driving
    Rakesh Jhunjhunwala made only 2% returns annually between 1992 to 2002
    Why i dont believe in Algos when it comes to trading, esp for Retail traders.

    Algos will make us lazy. Most gullible traders want one Algo to work forever.

    Thats not gonna work. Even in manual trades, one should not be too rigid with ones play. You should have the variations
    Stock Market and Spirituality

    Both require Introspection and Self Realization

    Less is More is one of the Realizations that needs to kick in

    When you drive a car or bike next time, try to drive in a way that you will need to use the brakes lesser than you normally do

    This will help you foresee potential risks and may help in the same aspect when you trade in Stock Market as well. Risk Mitigation

    Drive Safe.
    Learn to appreciate the days when Markets are good to you !

    Learn to distinguish conducive and non-conducive Markets

    Play to your strength, when Markets are conducive to your kind of trades

    Learn to take a break, when Markets are not conducive to your kind of trades

  2. Continued ...

    Was answering a Traders query and just sharing my answer here.

    In my opinion, making money consistently every month is possible only at relatively lower returns .....

    if you want to beat FD returns and make 1% a month (12% a year - close to twice that of FD) , you can be more consistent in options selling with cover ....

    as u try to increase the % returns, u will find that the consistency will begin to drop and beyond 3% - the more aggressive returns u try to make, the loss possibility rises and the % loss also goes up and you may even lose your entire capital ....

    its ideal if a beginner starts to focus on, not losing and try to make FD returns or more .... and slowly work your way up to try and make more returns and at one point, u will feel it becomes tough .... and learn to come back a bit at that point ..... it may be 2% or 3% or 4% .... depends on the person and the experience and ability of the mind .... some can be naturally gifted at trading ....

    the problem is, as beginners, we work on trades where making 50% or more returns a month is also possible .... this is like trying to fight Mike Tyson on your first day of learning in boxing .... You will be ambushed eventually .... Fight and practice with a beginner like you ... learn from the coach and maybe in a few years - you will be ready to fight Mike Tyson ....

    And stay at very minimal capital - till you make profits consistently for a few years ....

    5% a month is a path to becoming the richest man in the world with just one Lakh capital over 40 years .... Above 1% a month, anything more is a bonus ....
    Above 2% Returns - you are among the top 5% traders .... Above 3% Returns - you are among the top 1% ....

    Above 4% returns a month - you are the next Jhunjhunwala / Warren Buffet .... if u can do it over 40 years

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