Trading is a Passion

Friday afternoon, I came home early to have lunch and watch the market from my home. While I was on the screen, in the next room my wife had switched on the TV where Rishi Kapoor and his son, Ranbir Kapoor were speaking at the HT leadership summit. I could hear their voice while watching the markets fall. Suddenly, I heard Rishi Kapoor speak out some remarkable thoughts. I am recollecting his words:

“My son Ranbir had decided to enter the film industry. He told his mother that he wanted to be in films. When I heard his wishes, I said that Ranbir should do a course related to the film business. There is no sense in making him do engineering or management in anticipation that if he fails as an actor, he can then become an engineer / manager. People enter the film business because films are their passion. If he fails as an actor, he may become an editor, a director, producer or even a spot boy, but he will remain in films. So, let him acquire the skills of films rather than study some other subject”

When I heards these words, I realized that we, traders are in trading because this is our passion. We may make money, may not make money, but we continue since this is what we enjoy doing most.

Reader thoughts are welcome.

five wave decline in Nifty

On the five minute charts, a five wave decline in the Nifty is complete. When the fifth wave was being made, we had oscillator divergence. We should expect at least an A-B-C up move. Remember, these are probabilities.

Morning musings

A trader should have no opinion. The stronger your opinion, the harder it is to get out of a losing position. – Paul Rotter

Our charts on the Nifty give a consistent message – there is support in the 5950 area. We are in a bull market, so trader should try to buy dips, until….
If this support breaks on a closing basis, then short term traders should assume that more downside is coming. Our own views are worth nothing. We have to listen to the message of the market.

Vix is an interesting tool for short term traders. When Vix starts rising after a decline, this is usually a sign of market volatility as also a possible fall in prices. When Vix starts falling, this is often a sign of rising prices. I
have given a broad picture. Traders have to develop their own methods.

Oh, about the GM IPO. The issue price was 33, it opened above 35, then closed around 34. Rcom anyone?