WiseMan Trading

  Impulsiveness -Replace impulsiveness with proven rules that filter emotions into the correct actions.  Impatience -Replace market noise and emotions with quantified entries and exits based on signals.  Anger -Replace animosity towards the market with respect for price action and emotionless trading.  Uncertainty -Accept the randomness of short term results and embrace the long term edge.  Laziness -Reduce stress by doing homework when the market is closed so you can be ready when the market is open.  Greed -Replace the need for immediate wins with a process for consistently growing capital.  Fear -Replace your fear of failure with confidence in your system and your ability to follow it successfully.  Ego -Replace your need to be right about specific trades with the desire to make money.  Hope -Replace the hope that a losing trade will recover with a well-planned stop loss. Stress -Reduce stress by choosing to have small losses fast instead ...

  US markets closed in Red. But, right now, as Presidential Candidates debate is going on, US futures are higher. Asia opened lower. Australia and Japan opened lower while South Korea is closed. At 6.30 am, China Manufacturing and Services PMI came, which was better than expected. Both China and Hong Kong markets opened higher. SGX Nifty is trading about 30 points higher. Yesterday our markets were highly volatile. But still traded within a range of about 100 points. FIIs have resumed their selling after a gap of just one day. Yesterday they have sold for Rs 1457 crores. That is a huge figure as they have sold for Rs 10000 crores in last 5 days. So, on an average, they have sold for Rs 2000 crores per day, in last 6 days. Yesterday Metals, IT and Autos did well. Reliance and TCS supported the markets, otherwise Nifty would have fallen much more. On one side Reliance and TCS trying to bring markets higher and on the other side Banking stocks trying to bring the markets down. When Ni...

 US markets closed higher on Friday. Asian markets are higher. SGX Nifty is up by about 70 points. This is a good gap up, after rallying about 250 points on Friday. China Industrial profit data came positive. That is one of the reasons for bullishness in Asia. First time, in last many months, DIIs buying matched FIIs selling. FIIs have sold for Rs 2000 crores and DIIs have bought for Rs 2000 crores in Cash market. In a matter of 4 days, FIIs have sold for Rs 10000 crores. But I mentioned that, if on Friday, markets recover, then 10800 will be the support for the short term. Now SGX Nifty is above 11100. Today, the most important thing is the 'interest on interest' case in Supreme Court. Bank Nifty seems to be in over sold region. In September, Bank Nifty future fell from 25300 to 20500. That is nearly 5000 points or 20%. There are still some negatives. Corona infection continue to rise in India, Europe and US. So far about 1 million people died and WHO said the death can reach ...

Filter out the noise The signal is the truth. The noise is what distracts us from the truth. – Nate Silver.   As a trader, you are dealing with two types of information, signals and noise. Signals are meaningful pieces of information that cause traders to take action when the odds are in their favor. Signals are things that traders look for; technical buy signals, sell signals, or psychological signals like the market going up on bad news or down on good news, for example. The noise is all the price action, news, predictions, opinions, projections, and forecasts that add no value to your trading. Your ability to filter out the unnecessary and focus on the important things is what will keep you calm while other traders are suffering a psychological downtrend. You have to identify what type of information is meaningful to you. What are your signals? If your trading is only done at the end of the day, then intra-day price action may just be noise for you. Talking heads on financial ne...

   It’s why we all signed up for the battle against the markets.  In the beginning, we read an article or saw a sales leaflet about a guy who took his last few dollars and parlayed it into millions in the markets.   It usually involved a simple secret that when revealed to you (for a few hundred dollars), you could have the same success.  Most of the time, we would chuck the article/leaflet into the trash as garbage, but at some low ebb in our psyche, the article read like the answer to our prayers.    Most of us joined the fray for the “big hit”.   Whether we 1-2-3-counted with Ken Roberts, waved with Prechter, seasoned with Bernstein, or banded with Bollinger, we all soon realized that if we were going to stay in the game, we needed something more than desire and a dream…   We needed a back-tested system that we could have confidence in.   We realized that we needed to take our emotions out of trading and look at tr...

  Yesterday, our markets were highly volatile. Dollar Index above 94, FII selling of Rs 2000 crore in Cash market, Negative Asian clues, etc. But KKR investment in Reliance Retail news and Reliance JIO bundling mobile post paid plan with Amazon Prime Video, Disney Hotstar, Netflix, triggered short covering in Reliance. SO markets were in good shape, until FIIs press the sell button. Bank Nifty fell 500 points, Nifty fell 200 points. Then DIIs seems to have entered and bought heavily. That triggered a powerful short covering, in a matter of few minutes, Bank Nifty shot up 500 points from the low. So traders stop loss was hit on both sides. Bank Nifty future is at 120 points premium, that too just one day before expiry. That shows the power of short covering. All these Drama happened when European and US futures were firmly in Green. US markets opened, Dow was up about 175 points, from there, sell off came and Dow closed 525 points. From intraday high to low, Dow fell about 750 point...

Pre Stock Market Report Yesterday morning, though Asian markets were negative, we were doing well. In the afternoon, when Europe opened, the news came that US 2 Trillion suspicious money handled by Banks. Banking stocks fell in Europe. That triggered a sell off in Banking stocks here also, which were already weak. Then the sell off spread to other stocks also. Reliance fell more than Rs 80 from intraday high. Many stocks fell by 5% to 10%. But Corona Virus spread, UK considering another lock down to control Corona virus, Banking scams broke out, Nifty reversed and tested 11200 almost.  When we closed Dow future was down about 500 points. When markets opened there, it was down 950 points at lowest level, but recovered about half of the losses to close 500 points lower. In fact, Nasdaq recovered about 90% of its losses, closed just 15 points lower. Since Nasdaq was sold off already, there seems to be selling exhaustion. But here, Bank Nifty is not seeing any selling exhaustion. Yeste...