Tuesday, July 3, 2012

Hello World!!!

This blog is dedicated to all my fellow Supandi (From here on referred as "S") traders, Sell-side & Buy-side analysts. S's are often susceptible to mis-interpreting the markets under influence of other S's. These Ss are evenly distributed between Buy Side and Sell Side skewed in favor of Sell Side due to high pressure for revenue. Some typical traits are ("trade" can replaced with "Recommendations" for analysts)
A) Looking to turn every trade in to a profitable one - Rule 1#     "Learn to Loose"
B)  Sitting tight on losses and booking profits early- Rule 2# "Sit Tight"
C) Looking for edge in getting some secret information i.e. tips, front running tips, fundamental tips, technical tips - Rule 3# "You just need to know price not tips"
D) Has access to best research reports, market knowledge databases and is fully updated on News and Dates, all this leading to Confirmation Bias. Confirmation bias leads to wrong position sizing at turns i.e you start right but get heavily loaded on your position around the turn when confirming sentiment is extreme - Rule 4# "Study underlying market conditions, trend and psychology"
E) Get shaken out of their trades because of leverage , capital inadequacy, hope, greed and fear- Rule 5# Have an edge for entry and exits
F) Needs to have one or another idea to trade- Rule 6# Sit out when you are beaten out

This blog is dedicated to finding and maintaining an edge in trading and to help create awareness of the S'ness disease.

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