"...As a new comer to this field one thing that intrigues me is Can one depend on Technical analysis signals for trading and expect to generate regular income? If TA helps you generate accurate signals with an annual return of 40%-50% then all the traders must be millionairess and no one would lose money, but that doesnt seems to be the case.
So what are the limitations of this field and how can one expect to EARN A LIVING BY TRADING....
-- Gaurav Jain
Answer:-
I asked something similar to an All time Great Larry Williams. He has generated documented 100000% Annual Returns when he won the Robbins Cup Trading Championship. He was teaching the EXACT Trading techniques and Technical Analysis principles that he used in achieving these results. I asked him during this training If you are going to give away your secrets everybody in the world will use them and then given trading is a competitive business if all will do the same, no one will get anything. So why are you giving it?He said, " YOU ARE WRONG"! He further said, "EVERYONE WILL DO IT IS A CHIMERA!" He then asked me, "Sushil, you have that packet of cigarette in your pocket. Take it out." I did. He then said, "What is written on that packet, that Smoking is Injurious to Health. Isnt that knowledge given to everyone? still how many out of the smokers ever quit smoking due to this knowledge and how many people stopped short of smoking their first cigarette because they got this knowledge on the cigarette packet before their first puff in life!"
So, Gaurav, knowledge is there in this universe and available to everyone.
How many are able to APPLY it?. Discipline, emotional management, sticking to what you know are a 100 different names to the same idea.
let me put another perspective of my own to this. Market is the same for everyone. It provides the same prices to everyone. yet the performance of each is so unique...! Why? Did you ever think that no one ever made any money or lost any money off the market.
Each is making or losing money off their own perceptions and actions and market is merely the Action-ground of
our individual KarmaKshetra! The combination of an individual and the market is unique. Each person is engaging with the market with their own unique self.
So Technical Analysis is an approach to studying markets and
without spending adequate effort on understanding yourself, you are missing out everything.
Why just Technical Analysis, every other approach to markets and for that matter every other body of knowledge in any sphere of human enterprise is worthless without having a good understanding of who you are, what you are looking for, where you are, why you are doing what you are doing, how you should be doing it, how much you should be doing. Goals are a reflection of understanding your own self and more than deciphering the market its always profitable to decipher yourself, at least as much.
Every one is taught the same things at an MBBS Programme. Some become world famous doctors and some end up living a life where it is often that "operation successsful, but patient is dead" and most live a happy humdrum secure life of a good regular income. So MBBS is not the differentiator. It is
YOU, my dear friend,
YOU! That is why I consider the Bhagwad Gita is the most important body of knowledge for me. For others there could be any other anchors that help them decipher themselves better.
Go, study yourself. You can then become anything!"
-- Sushil Kedia
Courtesy: FIRE.
So next time you take a trade based on other's observations, understand the trade perception fully yourself and take control of your actions. Often I have noticed that when JNSAR triggers a buy, a perception is created in readers' mind that Market has turned up and it will stay that way and thus they fail to accept any reversals resulting in a "freeze". This is where the above "YOU" comes into play. In the end, what you do with the market makes you money and not what you think.
