Why Trading

Common perception
• It’s Gambling
• Its High Risk
• Not able to compete with Pro
• U will Lose everything

• …….Coz it not the case

 Reality
• Online Business, Less cost
• Geographically unlined
• Low Start up Cost
• Flexible Working Hours
• Liberating a Lifetime financial Skill
• Untraveled return
• Compare with other business
 Types of market
Share commodities forex
Company products currency
9:30 to 3:30pm 10:00 to 11 pm 24X5
47 million$ 478Billion$ 4.1 Trillion$
Can be controlled can be controlled Cannot
Low execution med instant
1:2 leverage 1:10 1:100
4. The Four Levels of Financial Market Analysis

Strategic
Analysis

Size Gap
Mind Analysis
Psychological Gap
Technical Analysis
Market Reality Gap

Fundamental Analysis
(including Macro- & Micro-economics)
I AM NOT CUT OUT I JUST LET THAT TRADE GO
TO TRADE WITHOUT ME

I CANT BELIEVE I JUST DID

THAT AGAIN
 LIST OF SOME GREAT TRADERS
Steven Schonfeld
• Al Weiss Jim Cramer Michael Marcus
Tom Baldwin
• Alexander Jimmy Balodimas Michael Platt
Tom Basso
Elder Joe Ritchie Michael Steinhardt
Tom Claugus
• Arthur Cutten Joe Vidich Monroe Trout
Tony Saliba
Joel Greenblatt Nicolas Darvas
• Bernard John Burbank Paul Rotter
Victor Sperandeo
Baruch William Delbert Gann
Kevin Daly Randy McKay
• Bernie William Eckhardt
Larry Benedict Ray Dalio
Madoff William O’Neil
Larry Fink Richard Dennis
David Ryan
• Bill Gross Larry Hite Richard Driehaus
Ed Seykota
• Bill Lipschutz Linda Bradford Raschke Robert Krausz
Edward Thorp
• Blair Hull Louis Bacon Scott Ramsey
Gary Bielfeldt
Mark Cook Sir John Templeton
• Brian Gelber Mark Minervini Stanley Kroll
Gil Blake
• Charles Jack D Schwager
Mark Ritchie Steve Clark
Faulkner Jaffray Woodriff
Mark Weinstein Steve Kuhn
James B Rogers jr
• Colm O’Shea Martin Schwartz Steve Lescarbeau
Jamie Mai
• Dan Zanger Martin Taylor
Jeff Yass
• David Einhorn Michael Lauer
Jesse Livermore
 LIST OF TRADER WHO MADE BILLIONS
IN ONE TRADE
• John Paulson's bet against subprime mortgages
- $15 BILLION IN 2007
• Jesse Livermore's call on the Crash of 1929 -
$1.2 billion
• John Templeton's foray into Japan - $100 each
in 104 U.S. stocks that were trading below $1. 4
years, this portfolio quadrupled
• George Soros' breaking of BOE - $1 billion
• Paul Tudor Jones' shorting of Black Monday -
$100 million
• Andrew Hall's $100 oil prediction - $100
million
• David Tepper's 2009 bet on financials - $7
billion
• Jim Rogers' early call on commodities - 290
percent through the end of 2010
The market emotion cycle
 Four Fears
• 1. Fear of being wrong -- creates agony over entering
trades
2. Fear of losing -- this often results in holding on to
losing positions
3. Fear of missing out -- leads to chasing price and
poorly timed entries
4. Fear of leaving money on the table -- translates to
holding on to positions too long and poorly timed
exits
To defeat the Four Faces, we need the
Five Truths of Trading:
1. Anything can happen.
2. You don't need to know what is going to
happen next in order to make money.
3. There is a random distribution between wins and
losses for any given set of variables that define an
edge.
4. An edge is nothing more than an indication of a
higher probability of one thing happening over
another.
5. Every moment in the market is unique.
 Five Belief of a successful trader
• Money is not important.
• It is okay to lose in the markets.
• Trading is a game.
• Mental rehearsal is important for success.
• They've won the game before they start.
 Test Your Trading Emotions
1. Do you rush into a trade with no preparation just to
be in the game?
2. Do you lose on the first trade of the day and then are
off emotionally for the rest of the days trades?
3. Do you double up on size after a losing streak or
when you’re down to gain profits
4. Have you ever been in a trade and gone into the I
don’t care watching your money disappear or let the
trade get away from you, with no plan
5. Do you trade when you shouldn’t and you’re off and
have no discipline to stop and regroup when you need
to?
6. Do you get exhausted after the trading day?
• 7. Do you have trouble telling the truth about your trading
8. Do you lose sleep over your trading?
9. Do you find after a losing a large amount of money you are
emotionally challenged on every trade after that loss?
10. Do you find it impossible to shake off a losing streak, easily?
11. Do you see your set up and still hesitate to enter?
12. Do you get obsessed into taking a trade knowing you shouldn’t?
13. Do you have fear when trading and enter too soon or exit to
early
14. Do you rationally know what to do in the trade but you find you
are not taking the actions you should?
15. Do you experience any emotions at any point of the trade like
indecision, worry , uncertainty, fear?
 Evaluation
• 1 to 4 You are a good trader you are in control
and have a plan.
5 to 7 You are beginning to shows the signs
that you are getting obstruct and losing
control.
8 to 15 Absolutely need a plan and disciplined
to succeed and to get control of your trading.
 Summary
• Trading is a business like any other
• It is still a challenge to make it work
• The startup risk is are much lower that other
business
• Its not gambling
• With persistence, the right support and time
you can succeed as a trader.