Trading with an edge

[kausty]

Trading is a zero-sum game. Some make money and other loose. Going into the market with an edge makes a successful trader. Every trader should have a rule and should always stick to it. There are 3 types of traders :
1. Those who have a rule, but do not stick to it (so it is thier money that the other traders take)
2. Traders who have rules and stick to it, making some money.
3. Traders who have rules, but also know which is the best time to break it. These are the world class traders like Richard Dennis or Jim Rogers.
So based on each individual traders' strategy, they should have a price point at which they will be sellers or buyers. This needs to be decided before the market starts. Then the trader needs to wait for the prices to be triggered and then take the trade, put a stop loss and walk away from the computer !!

I have started a blog, which gives the price points for selling or buying on an intraday basis for the SENSEX and the top 10 stocks in the index. The prices are posted before the market opens for the day. Obviously, this is free and I am doing it only for testing my methods. For the last 3 days I have posted the prices, they seem to work like a charm !!

I am not posting the link here as I am not sure if I should do that without the permission of the moderator, as it may be considered as advertising, though it is only a personal blog, which will make me happy if someone made money out of it !!

Guys, let me know if you are interested and moderator, please let me know if I should let the guys get the link if they are interested ?
Thanks

 

[YouAreNotFree]

Jim Rogers isn't a trader.

 

[Pat494]

I have started a blog, which gives the price points for selling or buying on an intraday basis for the SENSEX and the top 10 stocks in the index. The prices are posted before the market opens for the day. Obviously, this is free and I am doing it only for testing my methods. For the last 3 days I have posted the prices, they seem to work like a charm !!

I am not posting the link here as I am not sure if I should do that without the permission of the moderator, as it may be considered as advertising, though it is only a personal blog, which will make me happy if someone made money out of it !!

Guys, let me know if you are interested and moderator, please let me know if I should let the guys get the link if they are interested ?
Thanks

Any useful info is gratefully accepted

 

[kausty]

Jim Rogers isn't a trader.

Sorry, I am not sure if we are talking of the same person. There are many Jim Rogers. The one I am talking of is James Beeland Rogers, Jr. He started as a trader and joined George Soros for the Quantum Fund, which was more like a trading fund. He is obviously now an international investor.......but aren't inverstors' basically traders ?

 

[Black Swan]

3. Traders who have rules, but also know which is the best time to break them. These are the world class traders like Richard Dennis or Jim Rogers.
Thanks

Ya think?

 

[YouAreNotFree]

Sorry, I am not sure if we are talking of the same person. There are many Jim Rogers. The one I am talking of is James Beeland Rogers, Jr. He started as a trader and joined George Soros for the Quantum Fund, which was more like a trading fund. He is obviously now an international investor.......but aren't inverstors' basically traders ?

Yeah same person. Jim calls himself the 'world's worst trader'. Great investor though

 

[kausty]

Ya think?

Fair enough. As long as the fall doesn't kill you, you have a chance to get up. Trading is the same......as long as you can limit trading losses with tight stop loss and consider the losses as trading cost, the winning trade will come across !

 

[rsh01]

Trading is a zero-sum game

really?

so there are no traders out there who may be taking positions to manage risk e.g. to hedge their foreign ccy exposure from revenues in other countries?

 

[kausty]

OK. Here is the link to the blog. http://tradethesensex.blogspot.com/ (I hope the moderator doesn't mind.)

This is not a commercial blog and it is only to test the theory that I learned recently which seems to apply very well to stock markets. Please feel free to give any comments and we can discuss anything you want. I will be happy if anyone makes money trading these price points

Thanks guys who visited the blog. I will give the BSE buy and sell point for the day in a new thread here from tomorrow. You can always get the points for the top 10 BSE stocks on the blog. Would it be too much to ask you guys to become followers of the blog and put comments if you have the time. Thanks

 

[kausty]

really?

so there are no traders out there who may be taking positions to manage risk e.g. to hedge their foreign ccy exposure from revenues in other countries?

Sorry. What I meant by zero-sum game is that the financial markets has a total of X amount of money at any given time. Therefore, when one trader makes money there is another trader or a group of traders loosing money. The money just flows from one person to another. Even in a hedging transaction, there will be 2 sides to the trade.

 

[Black Swan]

Sorry. What I meant by zero-sum game is that the financial markets has a total of X amount of money at any given time. Therefore, when one trader makes money there is another trader or a group of traders loosing money. The money just flows from one person to another. Even in a hedging transaction, there will be 2 sides to the trade.

strange..I see it as triangulation..

 

[tomorton]

Trading is a zero-sum game. Some make money and other loose. Going into the market with an edge makes a successful trader. Every trader should have a rule and should always stick to it. There are 3 types of traders :
1. Those who have a rule, but do not stick to it (so it is thier money that the other traders take)
2. Traders who have rules and stick to it, making some money.
3. Traders who have rules, but also know which is the best time to break it. These are the world class traders like Richard Dennis or Jim Rogers.
So based on each individual traders' strategy, they should have a price point at which they will be sellers or buyers. This needs to be decided before the market starts. Then the trader needs to wait for the prices to be triggered and then take the trade, put a stop loss and walk away from the computer !!

I have started a blog, which gives the price points for selling or buying on an intraday basis for the SENSEX and the top 10 stocks in the index. The prices are posted before the market opens for the day. Obviously, this is free and I am doing it only for testing my methods. For the last 3 days I have posted the prices, they seem to work like a charm !!

I am not posting the link here as I am not sure if I should do that without the permission of the moderator, as it may be considered as advertising, though it is only a personal blog, which will make me happy if someone made money out of it !!

Guys, let me know if you are interested and moderator, please let me know if I should let the guys get the link if they are interested ?
Thanks

Hi kausty - I don't trade Sensex or its stocks but I am interested in ways to identify market direction (we all should be). Will you be posting your rules here as well as your buy / sell prices?

 

[YouAreNotFree]

strange..I see it as triangulation..

eh? Can you elaborate on that one, you've lost me.

 

[barjon]

Sorry. What I meant by zero-sum game is that the financial markets has a total of X amount of money at any given time. Therefore, when one trader makes money there is another trader or a group of traders loosing money. The money just flows from one person to another. Even in a hedging transaction, there will be 2 sides to the trade.

Yes, but the amount of money in the stock market is not static. If there's a net inflow of money then prices must rise and if there's a net outflow prices must fall. Thus, from a buying perspective, it's a positive sum game whilst the net inflow conditions maintain and a negative sum game when net outflow conditions maintain.

jon

 

[Splitlink]

eh? Can you elaborate on that one, you've lost me.

He meant strangulation.

 

[kausty]

Hi kausty - I don't trade Sensex or its stocks but I am interested in ways to identify market direction (we all should be). Will you be posting your rules here as well as your buy / sell prices?

I dont mind discussing the rules, but they remain dynamic as the markets, though there are some very important structural points which I have identified from historical data running all the way to 1995.
Apart from the price points, I will put the logic for those prices in my postings from tomorrow, but if we have to discuss in more detail, can we do it on my blog please. Thanks

 

[nunrgguy]

You're daytrading, setting a stop and walking away from it? Good luck

 

[kausty]

You're daytrading, setting a stop and walking away from it? Good luck

Every trade needs to be high conviction. If the prices doesn't do what you expect it to do, you will loose money. If you are sitting there watching every tick, most likely outcome......moving the stops and praying !!
Take a trade. Go for a walk. If the market is on your side, think of where to take profit. If you are stopped out, you are stopped out....look for the next trade.
Take a look at this blog http://tradethesensex.blogspot.com/ The prices and stops for tomorrow's Indian market is already set up !!
It is a new blog, but look at the performance of the last 4 days. The performance is based on the first price point which is hit (buy/sell) and end of day prices. But every time a stop loss is hit, the losses are accounted for that trade.

 

[Black Swan]

Heh lads, it's a blog, about forex n 5hit, haven't seen one of them before..and it's got a method thing..can hardly contain my wee..

 

[kausty]

Heh lads, it's a blog, about forex n 5hit, haven't seen one of them before..and it's got a method thing..can hardly contain my wee..

The blog is not about Forex....its about Indian index & stocks and is only 4 days old.....obviously not many hits !! And black swans come once in a while......