When it comes to ultimate trading system; everyone
are interested to know about. Obviously it is one of the curious topic
discussed form centuries. Everything started form plotting “X” and “O” on cigarette
packs or placing candles on a sand table. Technical Analysis grew as an industry without
even realizing.
We have witnessed many things in these times Black–Scholes,
quant, expert system, cutting edge software’s, back testing and dozens & dozens of indicators. Let me come
again, where are we today. A time we are bombarded too many techniques, models,
strategies and methods. Few sold over courses and coaching’s few are shown on YouTube
few kept hush-hush. Ultimately, today we
leave in a world where we have too many techniques to follow too many
indicators been invented few paid, few unpaid, few reliable and few aren’t.
After spending centuries of time, and spending huge
amount of money. What we have found? Is it an ultimate trading system? The answer
is no and we won’t find it until we understand the simplest things of stock
market. That’s volatility, price and volume; all these are the basic pillars of
technical analysis. Any indicators, trends, patterns follow these basic principles
of markets.
Stock market is not a Pandora box it’s a simple demand
and supply. There is nothing called as high profitability trading technique,
every system have its own risk. Risk and reward are the basic inherent
variables of any trade using a system. Remember, every system have certain risk
even a risk free model such as Black–Scholes model also had a risk with it. Ultimately
we are left with models which can be applied the only thing that you have to
know is when to apply.
I love Kung-fu Panda, the most
loved part in that movie is “nothing”. The soup-noodles isn't made up of a
special ingredient nor there is any special description about martial arts on dragon
scroll. Similarly we have left out with nothing in stock market. I have literally
seen peoples who make money only using candle sticks and moving averages. And
they are doing well, I regularly hear about a marwadi in Bangalore who use
manual tools for predicting market. And that man is well-known for accuracy. How
did he do that? It is nothing but shear dedication towards market.
This Sunday I was able to interact with an interesting man he is very
close to Indian army. He told “Any army in the world have an average IQ. It isn’t
an IQ that make that difference, it the discipline”. Larry Berman told something
similar “I am a technical analyst; I have people to punch my orders”. Guys, any
bullshit can make money out of market and we have good examples for that: Turtles,
Million Dollar Traders (documentary) and many more. In an official blog of
Rakesh Junjunwala described “people laughed at me when I told I want to be in
stock market”(When Rakesh took a decision to start trading in his college days).
Coming again, we have nothing called as high profitability trading. If there
is so than its you. And only you.
