Friday, June 23, 2006

BLAMING OTHERS FOR YOUR LOSS

A beginner entering the markets soon finds himself surrounded by a colorful
crowd of gurus—experts who sell trading advice. Most charge fees,
but some give advice for free to drum up business for their brokerage
firms some give for fun some for hype but very few you will find who are
genuine. Gurus publish newsletters, are quoted in the media, and many
would kill to get on TV. Masses are hungry for clarity, and gurus are
there to feed that hunger. Most are failed traders, but being a guru is not
that easy. Their mortality rate is high, and few stay around for more than
two years. The novelty wears off, customers do not renew subscriptions,
and a guru finds it easier to earn a living selling aluminum siding than
drawing trendlines.Traders go through three stages in their attitudes
towards gurus.
In the beginning, they drink in their advice, expecting to make money
from it. At the second stage, traders start avoiding gurus like the
plague, viewing them as distractions from their own decision-making
process. Finally, some successful traders start paying attention to a few
gurus who alert them to new opportunities.
Some losing traders go looking for a trainer, a teacher, or a therapist.
Very few people are experts in both psychology and trading. I’ve met
several gurus who couldn’t trade their way out of a paper bag but
claimed that their alleged expertise in psychology qualified them to
train traders. A teacher who does not trade is highly suspect.
Traders go through several stages in their attitudes towards tips.
Beginners love them, those who are more serious insist on doing their
own homework, while advanced traders may listen to tips but always
drop them into their own trading systems to see whether that advice
will hold up. Whenever I hear a trading tip, I run it through my own
computerized screens. The decision to buy, go short, or stand aside is
mine alone, with an average yield of one tip accepted out of every 20
heard. Tips draw my attention to opportunities I might have overlooked,
but there are no shortcuts to sweating your own trades
Being an analyst is a hard job but being a trader is

more harder.BOTOMLINE:-never trade blindly on anyones call
cheers

12 comments:

Anonymous said...

khush kaar dittaa eeee

rajesh said...

good article ,really appreciable one, every trader should read this, nice posting rohit bhai , cheers

rajesh.

saladi_elr2@yahoo.com

Anonymous said...

So trueeee
Hey i've been through all the 3 stages of trader..
and as you said...now when i read a guru's tip..i do my own research and take a call on it..(buy /sell /or just do nothing)

Anonymous said...

Rohit.I think u have reached the third stage.Hope so,so am I.I remember one mutual fund trader,whose tradesone can see on his website side by side when he is trading.As the world's wisdom can be summed up in one sentence, "There is no free lunch." In trading it is even harder as there is no paid lunch too.You need to actually do your home work.Buddy.
Nevertheless it was fun to read ur article.And thanks to pyt,Meena and Prem who made us to unite.
deepak
imokurokay@yahoo.com

STOCKMASTER said...

Hmm... Wonderful article Rohit. Keep it up.

Stockmaster

Rish said...

thxs all 4 such appreciation together we grow
cheers

toughiee said...

awesome insight...keep it up
rgds
toughiee
http://valuestockplus.blogspot.com

bliss said...

just great thoughts,
the guru or tipster in the horseracing terms,they are failed traders,due to their experience with their failures they start advice ,
i like this article
people who failed to trade are the people who advise
cheers
love
easwaran
bbliss47@yahoo.co.in

Anant said...

Very good write up. An eye opener and good guide to newbies. Keep up the good work.

Atul said...

A very intriguing article Rohit.
Hope everyone reads it and get their fundas right.
Keep it up - Atul.
http://tradingwithflair.blogspot.com
http://value-stocks.blogspot.com

Madhu said...

Hmmmm... I see you are showing all signs of becoming GURU..

pragna78@yahoo.com

Rish said...

reason 4 such a comment madhu?????

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