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

Can I be 100% sure of Making Money?

In response to my many advertisements in the print media, canvassing for participants in my three trading & Investment education workshops , I often face many intriguing questions.

1. Three core educational workshops were being focussed by me namely 

 a) TECHNICAL ANALYSIS MADE EASY ( TAME),
 b) FUTURES & OPTIONS MADE EASY ( FOME)
 c) FUNDAMENTAL ANALYSIS MADE EASY ( FAME)

    2. Often participants ask"  is there a 100% guranteed way to make money ". I am left speechless for a moment as I have no short answer.

    3. Here I try quote from professional traders in trying to answer the above question.
    4.  “Contrary to popular belief, trading is a craft. Like an artisan who develops a craft over a lifetime, it requires a discipline to be exercised daily.” Mike Bellafiore 

    5.   What’s going to happen? Who knows. As a trader, you’re not supposed to know the absolute future   to be able to profit from it.
You study the chart, assess the structure, define the probabilities, and then if you feel an opportunity presents itself, position into the price action that triggers an entry (or exit in the case of a stop-loss).
                                        
                                   - COREY ROSENBLOOM

6,"There is nothing to 'get' as a trader. What works one month may not the next. Trading set ups you crush one year may be extinct the next. As prop traders our job is to recognize present patterns and exploit them. But we also must have the humility to accept that these patterns might change at any moment. And when they do we must find new patterns. We must adapt."

                              - Mike Bellafoire

I can quote from any number of respected industry voices, but the beginning or developing trader needs to realize and internalize that" there is no holy grail in trading to be discovered"

How to generate Trading Ideas

One of the best practices I am trying to implement in my short term trading approach since entering into professional trading of stockmarket is STOCK SELECTION.

1. Trading only active stocks with volume and volatility, Identifying stocks in play, Stocks with Breaking News, Top Gainers/ Losers .
2. Brett Steenbarger on Identifying Trading Themes.
3. Personally I would zero-in on Stocks with huge CNBC coverage, print media exposure as contrarian plays trying to fade extreme optimism / pessimism on the stock.
4. Opening reversals identified work faster with less heat for the Intraday Trader.

Financial markets School

Presently my intentions to develop a stockbroking & research office complete with training facilities is taking shape.

1. My intention is to setup an office which offers quality trading facilities , atmosphere and culture from the lessons I learned in typical Brokerage Trading rooms.


2. Can I replicate the atmosphere of University Research Lab with the precision and quality which Brett often describes. It reminds me of Victor's Comments.


3. SMB Training is a pointer in this direction with their daily rigorous structure for preparation, execution and review.


4. The advantage of training operation gives a feedback mechanism and I feel it a natural extension for my academic background


5. Presently youth interested to learn about Financial Markets need more quality training facilities which are accesible, practical oriented, free of anecdotal nonsense,ability to validate with data,Scientific appraoch of viewing the markets.


6. These are available at big cities and reputed institutes like NISM, IICM, IITs etc which are out of reach for Graduates and Other persons interested to make a career in stockmarket or trying to become Professional Traders.


7. Another aspect of developing a professional approach to trading and speculation by retail investors with the help of good information and ways to approach this data can be an area which needs intervention and offers scope for value creation.


8. Is there a positive feedback to Market Training and related activities like Broking, PMS and Research. Since Market is a truly a knowledge and information business, I would hypothesise there are increasing returns to investment in Knowledge creation and dissemination.