WHAT IS THE MARKET?

WHAT IS THE MARKET?

What is the reality behind market symbols, prices, numbers, and graphs?

When you check prices in your newspaper, watch quotes on your screen, or plot an indicator on your chart, what exactly are you looking at? What is the market that you want to analyze and trade?

Amateurs act as if the market is a giant happening, a ball game in which they can join the professionals and make money. Traders from a scientific or engineering background often treat the market as a physical event. They apply to it the principles of signal processing, noise reduction, and similar ideas. By contrast, all professional traders know full well what the market is - it is a huge mass of people.

Every trader tries to take money away from other traders by outguessing them on the probable direction of the market. The members of the market crowd live on different continents. They are united by modem telecommunications in the pursuit of profit at each other's expense. 

                       

          "The market is a huge crowd of people. Each member of the crowd tries to take money away from other members by outsmarting them. The market is a uniquely harsh environment because everyone is against you, and you are against everyone."

Stock Market - Journey to be followed for Long term success

Stock market long term Journey

1. Decide that you are in the market for the long haul- that is, you want to be a trader even 20 years from now.

2. Learn as much as you can. Read and listen to experts, but keep a degree of healthy skepticism about everything. Ask questions, and do not accept experts at their word.

3. Do not get greedy and rush to trade - take your time to learn. The markets will be there with more good opportunities in the months and years ahead.

4. Develop a method for analyzing the market- that is, "If A happens, then B is likely to happen." Markets have many dimensions -use several analytic methods to confirm trades. Test everything on historical data and then in the markets, using real money. Markets keep changing-you need different tools for trading bull and bear markets and transitional periods as well as a method for telling the difference.

5. Develop a money management plan. Your first goal must be long-term survival; your second goal, a steady growth of capital; and your third goal, making high profits. Most traders put the third goal first and are unaware that goals 1 and 2 exist.

6. Be aware that a trader is the weakest link in any trading system. Go to a meeting of Alcoholics Anonymous to learn how to avoid losses or develop your own method for cutting out impulsive trades.

7. Winners think, feel, and act differently than losers. You must look within yourself, strip away your illusions, and change your old ways of being, thinking, and acting. Change is hard, but if you want to be a professional trader, you have to work on changing your personality.

        --- excerpts are form the book "Trading for living" - Alexander Elder

Back again - lot of changes n challenging times ahead

"Go out and face your fears by taking actions, making a mistake, learning from the mistake and growing mentally, emotionally and physically stronger from the process."😊

Moving Averages

Moving Average

Weekly chart - 26 WEMA (nearly 6 Month data)

Daily chart - 22 DEMA (nearly 1Month data)

Trading Signals

1). Direction of the slope

Pointing Upwards => Bullish => Go Long

Pointing Downwards => Bearish => Go Short

2). Buy near the EMA,

Place the stop loss below the EMA for long & Vice versa for shorts.

3). Dual EMA to identify trend and enter position.

Longer EMA indicate trend = > 22 DEMA

Shorter EMA indicate to enter position => 11 DEMA.

A). Buy when EMA rises and price closes above it,

Sell when Price closes below EMA.

B). Short when EMA falls and price closes below it,

Cover the shorts when price close above EMA.

Real education.

A real education will not teach you to be the first. It will tell you to enjoy whatever you are doing, not for the result, but for the act itself. Just like a painter or a dancer or a musician…

You can paint in two ways. You can paint to compete with other painters; you want to be the greatest painter in the world, you want to be a Picasso or a Van Gogh. Then your painting will be second-rate, because your mind is not interested in painting itself; it is interested in being the first, the greatest painter in the world. You are not going deep into the art of painting. You are not enjoying it, you are only using it as a stepping-stone. You are on an ego trip, and the problem is that to really be a painter, you have to drop the ego completely. To really be a painter, the ego has to be put aside. Only then can existence flow through you. Only then can your hands and your fingers and your brush be used as vehicles. Only then can something of superb beauty be born.

Real beauty is never created by you but only through you. Existence flows; you become only a passage. You allow it to happen, that’s all; you don’t hinder it.

But if you are too interested in the result, the ultimate result– that you have to become famous, that you have to be the best painter in the world, that you have to defeat all other painters hitherto– then your interest is not in painting; painting is secondary. And of course, with a secondary interest in painting you can’t paint something original; it will be ordinary.

Ego cannot bring anything extraordinary into the world; the extraordinary comes only through ego-less-ness. And so is the case with the musician and the dancer. So is the case with everybody.