The Moment of Truth in Stock Trading

Trading
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Dear Traders

We know, broadly speaking, there are four levels of stock analysis:

  1. Fundamental analysis (For stock investors)

  2. Market analysis (for stock investors/traders)

  3. Technical analysis (for stock traders)

  4. Chart analysis (for stock traders)

Ofcourse 1 and 2 overlaps, 2 and 3 overlaps and 3 and 4 overlaps.

AND the Moment of Truth is revealed only on the Chart.

If you are good in market analysis naturally you will be biased towards it and even tend to believe that market analysis is the best for stock trading.

Same goes for technical analysis, indicators, patterns, etc.

Whatever may be your level of analytical skil (fundamental, market, technical, chart) everything ends up on chart, the Moment of Truth.

Infact every stock trader has to end up in chart analysis. I will tell you how:

Suppose you trade based on market) technical analysis. Let us ASSUME that you are 100% accurate in your predictions. BUT your stoploss hits 90% of the time. Won’t you think about improving your chart analysis skills to resolve the stoploss hit rate?

Indicators are statistical tools which are less accurate than price actions. Plain chart reading is more accurate than price actions.

Ultimately Art of Plain Chart Reading, without any indicators or price actions has the level of accuracy in prediction needed to trade options on index, needless to say that Index chart is more predictable than stocks/currency/commodity.

And also needless to say that maximum profits can be made only in trading options on index with the Art of Plain Chart Reading, probably potential to double the investment every month rather than every year, ofcourse with a small investment.

Traders constantly tend to argue with me. It is natural that you will defend your style of trading. In other words you are basically subjective than objective.

This thread is objective than subjective.

The Moment of Truth. Has it hit you yet?

Art of Plain Chart Reading can be applied at three levels.

  1. Swing trading (one day timeframe chart)

  2. Intraday trading (one minute timeframe chart)

  3. Day jobbers Intraday trading (one minute timeframe chart)

If your index chart is noisy in one minute timeframe then it is not suitable for Art of Plain Chart Reading at Intraday trading, yet it will be suitable for swing trading (one day timeframe chart)

Day jobbers Intraday is based on the concept that yesterday’s market (high/low) is today’s sideways market. Hence day jobbers have the golden opportunity to pursue intraday trading by just setting two alerts on yesterday’s high/low crossovers (only bullish/bearish) and on these alerts can take 19 minutes break to enter trade.

The day jobbers Intraday strategy has the potential to transform stock trading industry by embracing the entire working cummunity to pursue stock trading.

Trading is a business and all businesses embrace uncertainty which is the fundamental of Art.

Yes trading embraces uncertainty which is why it is an art

Academic education is good in teaching subjects of certainty not uncertainty. That’s why universities failed miserably to create businessmen in classrooms. A whopping 99.99% of MBAs are employees, not employers.

Giant financial institutions recruit financial graduates to manage investments) trading in stock market. Hedging has inbuilt-edge and has no connection with academic qualifications to make money in it. Regarding stock investments, only legendary stock investors have been successful, not the financial institutions.

Profits are just byproduct of skills, not luck. In other words, SKILLS are the REAL investment, not money.

My final words to all successful traders. You are successfull only because of your skills and creativity. You may tend to argue with me because you have not yet recognised your creativity.

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No. :smiling_face_with_tear::smiling_face_with_tear::smiling_face_with_tear:

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It will not hit you until you are stubborn.

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Okay Sir. I have never used charts in 6 years. And I will never use it in future.
Never means never ever.
May be just out of luck I have been profitable. I will continue relying on the same. :sunglasses:

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My final words to all successful traders. You are successfull only because of your skills and creativity. You may tend to argue with me because you have not yet recognised your creativity.

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Really impressed. Thanks for sharing your secret for success. :pray:

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Is it not an open secret that the level of skills and creativity alone defines the level of success?

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Chart analysis helps traders to time the trade well so that they may reduce the stoploss hits rate.

If you are not depending on chart analysis then you are timing the trade in some other ways. Otherwise your stoploss hits rate will be our of your control.

As I said before successful traders do everything right yet they may not be aware of what exactly they are doing. Some skills are explicit, some are implicit.

For example prodigies have implicit or in born skills.

I am a philosophical personality which means I have skills to think for the world. Most people, including traders, think for themselves, not for the entire community. I try to understand every trading style or approach in a broader perspective. Then I connect the dots and see insights that most people can’t understand or accept.

As a philosophical person I can only show people the path of least resistance. What they do with that is totally upto them

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Guess work.

No stop loss.

Define successful traders?
Are you one?
Or you study only others behaviour?

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I trade options on index without stoploss. I have a stoploss of 5% in my mind which almost never hits.

Success Is a subjective definition unless it is science.

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Can I ask you a question?

What is your philosophy/psychology of stock trading?

(Psychology is the building blocks for philosophy)

Trading without the help of chart analysis is exceptional skill which is not suitable for 99% of traders.

My suggestion to majority of stock traders (both swing and day traders) is…
Learning price actions and applying is just a beginning. Tweaking price actions is next level. Inventing price actions is another level. Art of Plain Chart Reading (without any indicators) is final destination. Trading options (specifically on Index) is most profitable one yet requires great precision which is possible only through Art of Plain Chart Reading.

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Psychology is not the building blocks of philosophy, but philosophy has the necessity of being combined with absolute perfect knowledge, without which it becomes a speculation. Psychology is the study of philosophy which is totally devoid of that knowledge. Basically it studies speculation. But there is some dormant genetically wired knowledge in people, and that is never the same in all people, therefore we can never study psychology in perfection.

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Psychology is basically the study of the wired-in knowledge alongside the mental speculation. Like Sigmund Freud would say, let the ego ride the horse of ids while being there in balance with the superego. He didn’t say it precisely, but I garnished it from what he’s say.

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Yes for sure. But only if you answer mine.

For how long have you been trading? What are your returns in relative terms?

Still looking for this answer.

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I have been trading on and off around ten years. Initially only studying the stock trading industry and then later traded purely for experimental purpose. In the last six months I am mastering something which I call as Art of Plain Chart Reading (without any indicators) and doing experimental trading options on index with investment not more than 10k.

I have reached a place now where my strategy is perfected but my trading skills are yet to be perfected.

All that I am sharing here are the outcomes of my decade of experiments.

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I suppose you are a reluctant trader at best who is short of confidence .

exper

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So you haven’t tasted success yet? Long way to go mate. Try it out with bigger capital and you will know the edge is lost. Emotions are different.
Am happy that it’s working for you.
Just one thing. Don’t impose it on others. It’s working for you? Excellent. Doesn’t mean one can’t succeed without knowing to read charts.

Also you didn’t answer my questions yet. I asked for returns. And you are stating your capital.

Markets were boring and that’s why I had initially replied to you. Markets closed now and let’s hold on to our respective opinions.
All the best for us. Cheers. :beers:

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I restricted my investment to 10k. I multiplies it a few times but didn’t want to increase my trade size until I feel practiced my strategy sufficiently and perfected it. My experiments with market is over but it is not fair to consider them as professional until I keep reinvesting the profits into my trading size. That’s when the psychology is also tested

This thread I kept it as objective as possible. In other words, it is not about my opinion but it is what it is.

Basically I have the GUTS to redefine the definitions of stock trading industry. THIS THREAD IS REDEFINING STOCK TRADING INDUSTRY. I don’t care if the world takes it or not. I don’t beg for approvals

I am philosophical and no one can stop me REDEFINING the status quo.

What you are having is personal opinion. What I am having is a philosophy, a definition. There is no comparison.

This thread is a THOUGHT REVOLUTION.

Thousand stubborn minds cannot shake my guts.

You are good example of a stubborn mind.

People like you are the guardians of status quo in this world.

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great post thank you

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