The Independent Trader

Trading the markets is one of the most challenging endeavors. This is a field where only the best can survive unlike other professions where average can also make a reasonable livelihood.

1. SMB Training elaborates on the daily life of an Independent Trader.
2. Some psychological aspects of Trading
3. Difference between professional and amateur traders by Dr Brett
4. How to become an independent stock trader
5. One of the most tough tasks in becoming a profitable day trader is overcoming Transaction Costs.

What PRICE should we use?

There are four prices observed in the market. Financial press reports OPEN,HIGH,LOW,CLOSE.

1. There is a difference between Closing Price and Last Traded Price(LTP). NSE provides Closing price as last half an hour VWAP(Volume Weighted Average Price).

2.If Corporate actions(Bonus,Stock Split,Rights) happen how to adjust the price so that when we caluculate returns it does not give a wrong picture ?

3. CMIE-PROWESS gives ACP( Adjusted Closing Price). Yahoo Finance also gives Adj Close data.

Trading and Poker

There had been lot of articles about comparing Trading with poker.

1. Dr Brett on TRADING & POKER

  2. Intersting discussion at DailySpec

  3. The Chair's Admonition.

  4. Sushil Kedia on  Bluffing

  5. More articles at DailySpec

TECHNICAL ANALYSIS MADE EASY ( TAME) 2010

BlackSwan Financial Markets School is offering intensive,detailed, practical training program in Technical Analysis from Oct 2-3,2010 at Hyderabad.

1. The program curriculum is exhaustive, well-structured.
2. Having seen many TA programs lacking the context and becoming mere powerpoint presentations, BlackSwan aims to concentrate on CONCEPT-ORIENTED TA.
3. Dr Brett on Introduction to TRADING
4. TA is but one piece of Learning how to trade.
5. Creating a learning culture for your trading effort.Trading is a mindset and a way of thinking, it is more than entry, exit, stop loss and target.
6. New and developing traders need to have a holistic understanding of market environment and context.
7. Inspiration for this training efforts derived from Dr Brett's thinking.
8. Sharing curriculum of the Trading program is important to asses the quality of the program.

World Class education on Trading - for Free

For a motivated student of markets  , Web offers a feast of trading education resources.

1. Understanding Technical Analysis to the core from  Corey Rosenbloom.
2. Concepts and techniques of Intraday Trading  by  SMB Capital
3. You have to drink and eat every post of the God of Trading Psychology.
4. Scholarly education for a speculator from the Giant in the field of Speculation.
5. Plenty of trading ideas and model templates from Stocktwits

Concepts of Trading

I have started my learning in markets the hard way paying huge tution fees to the market and Vig to the brokers. Starting with fundamentals and by necessity learning by trial and error in brokerage trading rooms reminding of Reminiscences of a Stockoperator 's description way back in 1997.

1. As my journey continued with rich information contained in web 2.0 , I am fortunate to discover giants in the field of speculation, trading psychology and derivatives including Victor, Brett, Taleb.
2. Where as the beginning trader starts with Technical analysis and Charts , solid foundation may be possible only with CONCEPTS of TRADING.
3. TA when understood in terms of concepts like Trend, Momemtum, mean reversion, Low risk entry, classification of tools for ranging and trending markets,Day Structure assesment,Execution in countertrend,Allowing the market to show top or bottom formation, Sticking to timeframe,and understanding the Technical indicator built up rather than mechanical rules will put the developing trader in a formidable position.
4. I find much appreciation for the way the material of NSE Technical Analysis program is prepared in the lines of emphasing the concepts of Trading. The flow of the content in TA is very smooth and connected.

Newton Linchen's Insightful Comments

I always look forward to my dear friend Newton Linchen's insightful comments, critique, advice and direction. As a Speclist author, Trader and a great teacher willing to share his ideas, he has been a source of inspiration even in difficult times. I take liberty to post his comments here.

I rejoice to know you are involved in such a high standard project.Most brokerage houses are just interested in commissions, whether or not the client learns something or is profitable.
To develop an environment in wich is possible for the customer to grow, both in wealth and knowledge, is indeed a noble way to do business.
May all the good influences come in your way, and may you, your partners and clientes prosper!Regards from Brazil,
Newton Paulo Linchen
www.markettiming.com.br

Learning to Trade

The education needed to effectively participate in Markets is wide and intensive. In this post I will discuss my observations regarding the beginning trader starting with a clean slate and resources available to him on web 2.0 for self development in the Indian Context.

1. Start with a very good introduction to markets from Trading & Exchanges by Larry Harris
2. Good resource for observation of market data like volumes, price history from National Stock Exchange.
3. The short term trader can concentrate on Most active Securities and Top Gainers/ Losers list.
4. Active Day traders benefit from a market scanner like FALCON software.
5. For general understanding of trading psychology there is no better resource than Dr Brett Steenbarger