I would like to further submit some observations from trading in Brokerage Offices from India.
1.Engage in lot of conversation,personal mockery of other traders with lot of unrelated arguments of political nature or other wise
2.Keep CNBC with constant shouting and comments on breaking news,worse still keep shifting channels for cricket and Romance to keep you out of Boredom in seemingly slow markets
3.Always be on the look out for others random opinions and commentary with out any reason or data.Try to win them over to your point of view even when the market is open.
4.Give and recieve unsolicited, free opinions during market hours
5.Keep looking into other traders positions and get emotional excitement
6.Criticise others for trades not taken when they have gone your way
7.Express opinions on others trades when they are still on and get influenced inevitably by their intentional or unintentional commentary on your positions mostly negative
8.Ask for dealers opinion, Consult your broker for trading advice
who is looking for churn and maximising turnover ( Forget the Stock Brokers aim is to convert client’s Networth into his own)
9.Be intolerant of any small adverse excursions of price against your position, Be jubiliant of any small profitable movement and close the position to realise the profit ( Forget that the ” Speculator’s aim is to take reasonable losses or reasonable gains “)
10. Keep your trading room noisy with constant ringing phones and uncomfortable and crowded so that you are always under pressure to trade.
11.Take lot of breaks from trading terminal to chat with other traders,lunch breaks,attending to small personal works.
12. Invite friends and relatives to your trading room to engage in conversation
These are only a few along with many others exist in Brokerage Offices.
I feel fortunate in finding this forum of intense intellectual discussion with nothing spared in helping me to protect from some of the above.
Bewildered looks from other traders are common when I try to make some cryptic remarks like
a)Respect vig, spread,getting into huge positions
b)Why do you quote long term fundamentals and brand name of the company as a crutch for short term trading
c)Price knows al the published facts and much more
This forum helped many a trader exorcise his trading demons. I always keep my copies of EdSpec,PracSpec,Trading&Exchanges,Enhancing trader Performance handy to refer , chew and digest in times of market turbulence and frustation. They protect me from deep losses and show me the path to survival.
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