Daily Archives: June 12, 2015

Find your trading edge in the market to improve your trading results

Reading this might improve your trading results DRAMATICALLY and help to identify your edge in the market. You don’t need any external source for this, you can find it by questioning yourself.

Not long ago, I was just thinking about past 9 years of trading and thinking what all stocks had given me profit and what all went in loss. Soon, I discovered that Nifty, INFY, Reliance Industries, R Com, Reliance Infra, SBI, Yes Bank, Canara Bank,ITC, HUL, IFCI, Tata steel, Sesa Goa(now Vedanta ltd) , SAIL, JWS Steel, Jindal Steel, Coal India, Adani Enterprises, HDIL, IB Real Est, Unitech,  REC, PFC, BIOCON, Ranbaxy, Arvind, ONGC, Century Textile, Mahindra and Mahindra, Mahindra Financeetc had always given me profits. I had earned profits in these stocks even when I did not know any technical analysis and Technical analysis improved my results even further.

Now on the losing side were Bank Nifty, ICICI Bank, DLF, TCS, Tata Motors, Reliance Capital, Ashok Leyland, Amtek Auto, Grasim, BHEL, RPL, Reliance Power, India Cement, Cairn India etc.

If you will note on the above list you will find that there is a string of Steel Stocks, when I noticed that I eventually concluded that I was making profits in those stocks even when I did not know any technical, Elliott Waves or Gann. Knowing these technicals improved my results further. But the fact was that I wasn’t able to realize that Steel sector was a bit more harmonious with my trading than other stocks and I was trading in all the stocks without realizing that I could have earned much more in Steel stocks and refrained myself from the losing stocks.

For example in the 2007, in my college days suggested my friend to book profit in SAIL at 149.95 and not at 150, he was able to book his 100 shares at that price bidding in advance. Because I had seen its reversals at 95 paisa tops many times (eg- 78.95, 59.95 etc), and that top was not broken till many days and weeks.  I did not knew any technical that time.

Now few days back I had a call with my Client for Elliott Waves who was stuck in Jindal Steel from 350 levels. I shared my experience what I had realised about myself for the steel sector and other unlucky stocks. Surprised with my words this person started sharing his experience that once he had bought GAIL and faced 30,000 loss he then connected the dots that the things coming from under the ground might not be giving trading edge to me. Then, he told that he was thinking to go long in Amtek Auto and Exit Jindal Steel, and Amtek Auto rallied from 40 to 190 levels in just 40 days.

In the call next day he came up with a list of some profit trades he did in the past. He said he had earned good profits in Tata Motars. He earned profits in Hero Honda. Things started getting linking very soon and he realized that he had an edge in Auto industry and these stocks had always given him profits. He gave 2 more examples of Eisher Motar where he earned intraday profits two times more than 10,000 each day. He disclosed that he was able to earn good money in Bajaj Electricals, which I don’t know in which sector operates in. Still I felt happy that he was able to identify his edge in the maze of the difficult market where he could earn money easily. He then finally admitted that he will do much better if he focused on these stocks and he had an edge in telecom stocks where he earned money in Bharti Airtel, Idea and even in Reliance Communication.

Your edge could be in particular currencies, or commodities, and now it depends on you to realize your edge and not somebody else.

Think for your trading results of your past and if you find a correlation, share your story with us  in the comment below. Hope this article will improve your trading even without learning any technical analysis.