Do you need help figuring things out when it comes to day trading?
Do you need help visualizing your future when it comes to futures?
Do you see futures as the last thing to touch, therefore looking for an option when it comes to options?
If you answered yes to any of those questions, your search ends here. The complete theory and methodology as explained in the book is designed to create synergetic combinations of tools. Most importantly for day trading and short-term trading. These combinations of tools and skills will give you fast and precise signals for entry, management, and exit of your day trades.
What is the main reason traders fail in the Stock Markets?
This is one of the questions that has troubled me for the last twenty years. Each day for the past twenty years has resulted in better technical analysis, and many others are even more sophisticated. However, many of those skills remain stagnant and do not translate into trading profits. I have compiled streams of trading, and I believe the answer is there, and the answer is that no matter the technique, trading will always have an underlying uncertainty. Most people need certainty in their form of trading. We seek certainty because it offers clarity. It can be alarming when we experience ambiguity. Most traders experience this fear the most compulsive traders seek validation from the most complex theories.
The traders who seek certainty and work with it will never be able to work in a size that is life-changing because deep down, they realize that most batting theories have dreadful performance records. The simple tricks and the acceptance of the ‘less than 60%’ success rate are what transformed my trading. Accepting that the markets will not be friendly is what has given me a far greater success rate than any technocrat. First, I can work with a far greater size, and secondly, I can apply trade management to a profitable trade and run it hard. I believe that the majority of people fail because their need for certainty and correctness is causing them to go in the wrong direction. Over time, I’ve also come to realize that my erratic, combative, unyielding, and irrational personality has, in some ways, benefited my trading career.
Conservative, accommodative, fearful, and “normal” people, in my experience, are not successful market traders. The simpler method may make you appear more approachable, but it’s effective.
The Enthralling Potential of Stock Markets
aasman bhi dikhlaya… Zameen par bhi le aaya… Maya gajab iski… Koi bhi bach na paya—the markets transport you quickly from the sky to the ground. There is no way out of this journey.
The majority of people who come to D-Street hope to make quick cash. Many lose the motivation to put in the necessary effort to succeed and make money after realizing that it is not easy and that it takes hard work, persistence, and dedication.
You must constantly be aware of a variety of local and global factors if you want to succeed in this field. Just think about how quickly markets can change color. The Bank Nifty intraday chart is displayed in the following figure. As you shall see, the market initially gets you to the seventh heaven, then subsequently drags you down into an abyss, all within the span of hours. That’s the stock market for you. It perfectly reflects the character of markets and the wonder that they evoke in one and all. We might have kept this book seriously serious, very complicated, and hardly understandable—one for specialists only, the fortunate ones, the super smart, and the talented few. That was not the idea, though. With this book I wish to give confidence to those who desire to be successful day traders.
I’d like to demonstrate how short-term trading, or day trading, can be accomplished as a business and how it can be your way of earning not only your daily bread but also butter, cheese, and jam. So we’ve learned not only technicals but every other aspect that comes into making you a successful trader. Be it IT and systems, be it financial capital, be it emotional capital, be it the daily morning routine. Be it how to dress up, what to eat, how to behave, how to watch business TV, etc. I want to create entrepreneurs and not just traders. I want you to learn to do your own thing, rather than look for a job here and there.
The Trader as an Entrepreneur in the Stock Market
India has never been a nation of business-like people, with an inclination to take risks and a desire and inclination towards vocation and enterprise that linked the country to the outside world. It was the English, who governed India for almost two centuries, who also established an education system that created nothing more than clerks. Until now, India has continued the tradition and has, for instance, hundreds of colleges churning out hundreds of thousands of unemployable engineers!
This is not to write that formal education is not useful, but education must also make us proficient in other skills that will prepare us for life. It will only be then that India will progress and leave its mark.
My old college invited me to its diamond jubilee function. For one to be invited and honored by the institution from which one studied, and to be recognized and honored for one’s contributions by the seniors, is a milestone to be really very proud of. In my address there I laid out in some detail what an entrepreneur is. I pointed out that in places like Gujarat, engineers were receiving Rs 12,000 as a fresher’s salary. Do you have any idea about the return on investment (ROI) on all the money that your parents have spent over the years to get you educated at the top institutes, providing you with quality tuition and coaching classes, and spending on your co-curricular activities, along with entertainment and grooming? What is the rate of return on all that? I added, “Getting employment is not a fantasy. Employing ten individuals is a fantasy. Imagine repeatedly, with belief. Be in the zone.
Trading is an extremely peculiar business. You get to set your own pay. You set your own promotion and demotion. You do not have to court buyers. You do not have to go looking for sellers. You need no selling gimmicks. You need not concern yourself with matters about the supply chain or inventory. Nobody sits above your head every April appraising you. You get to work from the top of a mountain or out of a beach-facing room, as long as you have a power supply and Internet connectivity at hand. You never experience labor-related problems. You don’t require permission from anyone to spend time with your family when they need you more than D-Street needs.
Before you join the wagon, though, you must steel yourself mentally and financially to face the challenges. Someone has rightly said, “Entrepreneurship is about living a few years of your life like most people won’t, so that you can spend the rest of your life, like most people can’t.”
Embrace the moment, and with courage, take that leap of faith into the unknown.