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1/ Someone shared this article few hours ago and my heart goes out to the family - am not gonna judge him and i truly wish he stayed back for his family.
https://www.hindustantimes.com/noida/engineer-in-debt-ends-life/story-4ckIr94okHpwJyqQnRThvO.html
Wanted to share my thoughts(would be non-coherent) about it here --
https://www.hindustantimes.com/noida/engineer-in-debt-ends-life/story-4ckIr94okHpwJyqQnRThvO.html
Wanted to share my thoughts(would be non-coherent) about it here --
2/ Trading education (all over the world) in a broader sense is done upside down...there is no structured process to it.
1. Usual routine .. pick a strategy from a fourm/SM -> see last few days charts --> fund acct (if not done already) -->start trading from trrow
1. Usual routine .. pick a strategy from a fourm/SM -> see last few days charts --> fund acct (if not done already) -->start trading from trrow
3/ --> win first few trades(random exit based on rupee value) --> after few days/weeks/blow the account
2. Then, read more books/follow few ppl in SM - figure out new strategy --> start trading --> blow again
3. Figure out there is more to it than just strategy..
2. Then, read more books/follow few ppl in SM - figure out new strategy --> start trading --> blow again
3. Figure out there is more to it than just strategy..
4/ ..as all winners are lost in 1-2 losing trades --> Understand managing money/risk is not right --> read more about it --> spend few months on it (mind you, he would keep trading in this period and continue to lose more) --> figure out a MM plan
5/ ..even if it half baked 
--> start trading with more conviction now --> could not follow his MM plan --> lose substantial money from the account due to errors --> figure out there is more to it than what meets the eye --> start focusing on how to minimize errors -->
--> start trading with more conviction now --> could not follow his MM plan --> lose substantial money from the account due to errors --> figure out there is more to it than what meets the eye --> start focusing on how to minimize errors -->
6/ Read more on trading psychology (many feel its BS..i will come to that later ) --> figure out 'he' is the problem for his issues --> work on how to handle losses/trading discipline/trading capital importance --> and the actual 1st step towards profitable trading starts..
) --> figure out 'he' is the problem for his issues --> work on how to handle losses/trading discipline/trading capital importance --> and the actual 1st step towards profitable trading starts..
7/ Almost all the trading literature(be it videos/seminars/books) focus on the strategy and almost nothing talks about risk (except for less than 0.5%) or trading psychology
I believe this flow is COMPLETELY WRONG...
I believe this flow is COMPLETELY WRONG...
8/ Many folks say that you dont have to blow up accounts to become profitable. Fair enough !! Only if the newbie has enough capital(subjective), not depending on his trading income, MM laid out nicely, total know-how of how we react based on HGF before he ever starts trading
9/ and have lot of patience to see an account grow(like watching our own baby growing upto a well-mannered/compassionate man/woman)...
But unfortunately, newbie does not have any of the above mentioned stuff fulfilled when he starts trading...so, blowup are common for 99% folks
But unfortunately, newbie does not have any of the above mentioned stuff fulfilled when he starts trading...so, blowup are common for 99% folks
10/ If you show me a person who has not blow up his trading account(i know few myself), then i can tell clearly what made him not blow up....usual reason in non-dependency on trading income..he would have made sure that his expenses are met by some other source
11/ Now, lets think a bit different. What if the whole trading education flow is reversed?
a. Ask a newbie(who is trying to enter) to read book like mkt wizards to see which style of trading he likes.
b. Lets say trend following. Explore more in Trend trading
a. Ask a newbie(who is trying to enter) to read book like mkt wizards to see which style of trading he likes.
b. Lets say trend following. Explore more in Trend trading
12/ teach him the importance of good capital(it is called 'capital' markets) for a reason.
c. Make him understand to not depend on his trading income in formative 5 years atleast
d. Make him understand how HGF wreaks havoc in financial domain(let it be investing or trading)
c. Make him understand to not depend on his trading income in formative 5 years atleast
d. Make him understand how HGF wreaks havoc in financial domain(let it be investing or trading)
13/ e. Teach him importance of MM and how higher risk is commensurate with the higher returns/increased risk of ruin
f. Make him understand how leverage can cut both ways.
g. Why think long term (next 10 years) in building the account and why patience/discipline is required
f. Make him understand how leverage can cut both ways.
g. Why think long term (next 10 years) in building the account and why patience/discipline is required
14/ h. and then, ask him to build a methodology(strategy) that forms the foundation of all the above-mentioned steps..I believe without a +ve expectancy system, none of the MM/psychology will help the trader to succeed but 99% of the folks give importance only to the foundation..
15/ i. Understand the style of trading(this can change in latter stages too) --> atleast one should be aware of psychological roadblocks --> capital & risk/money mgmt importance --> then work on strategy.
Unfortunately, a newbie does not even know these other things exist.
Unfortunately, a newbie does not even know these other things exist.
16/ Now a bigger question begets us --
Is it the fault of the newbie to keep believing strategy will take him ashore and keep looking for that holy grail or the failure of the educators?
Trading education system is messed up totally, in my opinion.
Is it the fault of the newbie to keep believing strategy will take him ashore and keep looking for that holy grail or the failure of the educators?
Trading education system is messed up totally, in my opinion.
17/ For all those folks who think psychology is BS and a strong (??) strategy is the key to riches..here is my Q
If one is trading with 2-5-10 lots of futures so profitably, why can't he/she do it 200 lots of futures?
Please sit on this question & you will quickly understand..
If one is trading with 2-5-10 lots of futures so profitably, why can't he/she do it 200 lots of futures?
Please sit on this question & you will quickly understand..
18/ ..why profitable trading that can give few crores (atleast) is simple but not easy.
For a profitable(consistently) trading profession, lot of things have to come in tandem with each other
1. Capital
2. non dependency on trading income for 1st 5 years
3. +ve exp system
For a profitable(consistently) trading profession, lot of things have to come in tandem with each other
1. Capital
2. non dependency on trading income for 1st 5 years
3. +ve exp system
19/
4. Logical MM plan
5. Scaling up plan(if any)
6. Temperament to handle losses
7. Patience to wait for the acct to grow
8. Discipline to stick to rules as mkts are like wild river..only rules can save us
9. Taking ownership for the p/l
10. Understanding law of large numbers
4. Logical MM plan
5. Scaling up plan(if any)
6. Temperament to handle losses
7. Patience to wait for the acct to grow
8. Discipline to stick to rules as mkts are like wild river..only rules can save us
9. Taking ownership for the p/l
10. Understanding law of large numbers
20/ Until the trading education system changes, am sure this is not the last time we gonna hear about these kinda sad incidences.
Trading is not for everyone and the best thing we can do is to make sure the newbie understands that he is learning things upside down !!
Trading is not for everyone and the best thing we can do is to make sure the newbie understands that he is learning things upside down !!
