Blogging helps to learn

I'm not proficient in English. Despite this problem, I'm trying to blog about my experiences in my career as a trader. I'm planned to update my blog on continuous basis. If there are any readers they would definitely be entertained to read about my failures that are really laughable for experienced one in markets. I believe I'd be able to bring entertainment value for learned gentleman who read my writing(If at all if someone really read my blog). I believe that blogging would help me to learn more about trading. In order to learn more I've planned to update my blog on weekly basis. I'm going to write my spectacularly wrong trade on Unitech which was made in 2006 that helped me to lose 90000 bucks.

I've got a good news for me

With the help of my friend, I'd be able to manage money for funds (I'm currently doing for US markets, but got chance in Indian markets) to invest in Indian Markets. I have got some tight agreement to sign that gives guarantee on investments. I've to accept to that agreement since I'm a starter and there is no other way for me than accepting to this agreement. I've got so many strategies and I've infact followed all those strategies now for the accounts of my friend (which is around Rs.4Lakhs). Most importantly I've made profits using those strategies. I made some calculations and come out with the possible profits and chances of losses and how to minimize those and come out with profits. I have agreed for 12% guaranteed return to my investors. It doesn't matter whether I make or lose money I'm suppose to return 12% to my investors. I did that and I might be signing contract within a fortnight with pool of investors. If possible, I'd probably scan those agreements and display it in this blog(with the permission of those investors, if not permitted not possible).  I guess this would be a start for me in India. I'm also speaking with few investors. Let me see who would bet on me. I'm a starter and don't have much credibility to show it to my investors. Let's see how things move from here.

Trading is not easy

Last week is really really hectic. I've been reading, reading and reading lots and lots of things. I learned that Trading is not that fucking easy. I thought that intelligence could work in markets and I've been proved dead wrong. I've to caution everyone about trading. If you're an IIM  or Harvard MBA or from Wharton School of Business there is a huge possibility that you could lose lot of money in trading. There is no doubt that you'd definitely be smarter than others. Unfortunately Markets doesn't care a shit about you. That's the beauty of markets. If you ever think that having an MBA from premium school matters in trading, then you'd lose more since your ego would makes you to lose lot more than mediocre traders (like me). I don't have intelligence to have boat load of egos with me. Atleast this could be helpful for me to cut my losses, since I won't be having problem to admit that I'm wrong. But wait, have I done that in my trading. Honestly no! I've waited waited and waited to see some of my stocks going below 30%-50% of my initial buying price. I've to admit that I'm a complete asshole in managing egos. Now after so many tuition fees ( Losses in stocks) I've somehow ( that's true, still not completely) adjusted and cut my losses within 5%. This is really working. I've been saved by big fall. This is true. A trader who takes early losses would sustain for long period of time. I'm amazed when I saw this working for me. I don't care for others. I'm talking only from my point of view. Cutting losses earlier is really really working for me. Now I'm trying to become a trend follower. Initially I was laughing about others who speak about technical analysis (Still I don't believe in lot of technical analysts,since most of them are big failure) and trend following. I learned in a hard way from my own experience. Trend following really works. For that you should concentrate only on fucking price and not about other opinions. Another important thing is shedding ego. This is not taught at B-schools and at least world is not flat as thought by IIMers, Harvards of this world. In Trading everything is same, it would remain same for years to come. Everyone are equal. You could be a drop out, An MBA from world class B-School or a PhD in Quantum Physics,but markets doesn't care a shit about who you're and what is your qualification. It would continuously do what it wants to do irrespective of your opinions. Trading is not easy. Will be continued...., 

What is my credibility?

Credibility is most important for anyone to give advise in stock markets. Anyone can write about anything about stock markets. At end of the day is the person qualified enough to give the suggestions or advise is what a wise man think about the suggestions he read from the sources.

What is my credibility?

I started my trading in the year 2006. BSE crashes 1000 points in the first month of my trading history. I witnessed 1000 points collapse in my first month of my trading career. I didn't lose money because I didn't had any positions.

2006 is losing year. I lost 7 lakh rupees in that year. My most unforgettable loss is Unitech. I lost around Rs.60000 in that trade. I'll write this in another post.

2007 is my 2nd year of my career. I lost 6 lakhs in that year. I clearly predicted financial crisis, but was bit earlier to short the market. I took lots of put options and eventually lost lots and lots of money.

2008 is my 3rd year of my career. I made huge bucks in that year by simply shorting the markets. September and October are important months of the year that gave me huge bucks and I covered all my previous losses (13 Lakhs in 2 years) and was infact in profits in my career as a trader.

2009 is a block buster year for me. I simply watched Nifty rallying from 2500 levels to 3000 without doing single trade. I was preparing for May election trade. I made trade of my life and made a blockbuster return in a single week ( bought a house on the trade without any loan) . After that I went overseas to manage money for a family office.

2010 is no trade year.

2011 lost almost 5 lakhs (Despite this 5 lakhs loss, I'm still in huge profits in my trading career) in trading. I lost almost 2-3 lakhs by shorting Gold.

2012 - No trade . I'm yet to trade because I've invested my money in Real estate. The trades which I've mentioned this year are all done for my clients (All are friends) and I've not made any personal trade for my account.

If I look into my history I've to admit that I don't have any fucking credibility to give suggestions or advise to anyone in trading. I'm not giving it to anyone. I knew that I'm unfit to advise but I'm fit to learn lot of things in trading. I've read more than 25 books in this year alone and all are real gems.

Examples : Jack Schwagger - Stock Market Wizards

Buffettology, How to be a stock market genius and so many books on trading. I'm still planned to read lots and lots of books.

Hope I'd be able to learn and become qualified to help others ( I don't like giving advise, because I know that I'm unfit) in trading. 

Make no Mistake - I don't have Credibility!

Shankar Sharma Used Media to exit his holdings

Shankar Sharma is one of the famed broker of First Global who has various predictions that made him an iconoclastic or celebrity among informed traders. He rightly predicted New Highs of 2008, and again the crash of 2008 , Sell call on PSU Banks and you name it he has done most of the things correctly.

Jan 13, 2011 Interview on Market Correction

Markets could fall by 10-20% in 2011: Shankar Sharma

Recently he (January) appeared in Television channels and made a propaganda that Indian Markets could go new highs and INR could come around 45 bucks against USD and he added that India Macro is great. I'm one  of the guy who believed his words, but fortunately I didn't invested in Markets. I'd say that its purely because of luck that I didn't entered the markets because the investment which I intends to invest is (currently) locked in Real Estate ( Thankfully with nice profits- Again Lucky than my intelligence).

This is Recent Interview with ET: 

By end of the year, India will be the best among emerging markets: Shankar Sharma, First Global

Shankar's big call of INR Appreciation - Jan 22, 2012

Shankar Sharma's big call for 2012: A strong rupee, 45-46 to dollar

Indian GDP outpacing Chinese GDP - Feb 27, 2012

India's GDP growth may outpace China this year: Shankar Sharma

This is the stunner

Shankar Sharma bids goodbye to Dalal Street for his start-up 'Cerebra'

If Shankar Sharma believe that markets are going to go for new high why in this world he should unnecessarily concentrate on new biz that would take time to become profitable. This could be tricky question or else it could be unrealistic question, but Shankar needs to answer this question to all his viewers.

Well, my key take away is IN STOCK MARKETS EVERYONE HAVE VESTED INTERESTS. There is no room for sentiments. Markets are meant only to make money and we should never, never believe in the words of anyone irrespective of his/her credibility.

I've not lost money in the markets. But I've been blinded (I've to admit this) by the views of this guy whom I'd great respect. Here is the guy who said that markets would go new high, but is winding up the business and getting hell out from the markets and he still believes that listeners should believe his words.

WTF!

MY STANCE IN REC VINDICATED

My position in REC is vindicated. I know, I know what was your thinking. This is suppose to be a blog about mistake and how come I'm writing about winning position. Yeah, there is a glitch in this. I didn't took huge position in REC and my profits are not that big. This is one of the biggest mistake I've made. Despite seeing the momentum I didn't bet big and eventually end up making only small profits. This is not accepted and its poor trading strategy.

I missed blockbuster Nifty Rally

Haha, Another biggest mistake. I missed blockbuster Nifty rally. I was actually long Nifty around 4590 and booked my profits at 4710 and waited for a pull back. Again I entered Nifty at 4895 with hedged position and booked my profits and covered my shorts in call option and eventually lost money because of hedged position. Again at 5300 I enter into nifty with a bang by buying call options of SBI, Axis Bank and ICICI Bank. I was holding big long position in PFC and REC. I prematurely booked profit and wasted the opportunity and in that process I almost lost making more than 3 Lakhs (Actually made a small profit of 50k, but it simply compensated my earlier hedged losses that I made by writing call options). I believe that this rally clearly has legs and I personally believe that Nifty could make New High. Let me see whether I could make profits. I'm long in few positions that are very high beta names which I've never gone before in my life. Those are infrastructure names and I'm really afraid to hold it but still holding it in a belief that I could erase all my previous mistakes. Let's see what happens?