Making money by trading in financial markets is great task. This is a great truth that is almost impossible for one person to teach to another. It can only be realized by the very act of trading. Accordingly, very few people enter the trading arena with their eyes fully open to the psychological and financial risks. Indeed, they approach markets in the same way that they might approach a lake containing treasure. They feel that all they have to do is set up appropriate pumping equipment and the treasure is theirs. What they do not realize is that – as in all good fairy stories – the lake has magical properties, designed to protect the integrity of the treasure. Most people who touch the sparkling water of the lake are doomed to be transformed by it: they become treasure protectors instead of treasure hunters. The problem is that there is an energy in financial markets that somehow coerces and organizes investors into a single-minded unit. The force is a psychological one, and it is so powerful that investors do not recognize it until they are finally caught in a disastrous bear market that wipes out months, of hard work.
Secrets that a share trader should know
The corollary of this is that truly great traders are very rare – only a few have the special clothing that protects them from the secret effects of the lake. What is it, though, that separates such traders from the rest of us? How can some traders make regular and large profits, while others are unable to string two successive winning trades together? Most obvious answer is that the entire great technical analyst uses clearly defined system and they stick to the rules. They understand that market does what it does and they have no control over it. They don’t regret taking loss and are much dynamic in decision making.
Let us have a glance at few trading secrets of great technical analyst of India.
1. GAUTAM SHAH
Associate Director and Chief Technical Analyst at JM Financial
Being CMT and CFTe , he has in depth knowledge of indicators, price pattern analysis, swing trading, Elliot wave analysis, intermarket relationship, cycle analysis, Fibonacci retracements etc.. He applies all the above knowledge to his trade and identifies the correct trend and market characteristics and applies indicators adoringly. His specialty is Elliot wave analysis and can give long term target on the basis of wave count.
2. ASHWANI GUJRAL
Chief Market Strategist
Ashwani Gujral’s brilliant academic background spans engineering and finance. He is BE from M.I.T Manipal, 1993, and MBA (Finance) from Georgetown University, Washington DC, and USA. He is on exclusive panel of ET Now channel to provide technical analysis and market outlook. He has developed day trading and position trading into an art form where consistency is the order of the day and money can be made at will.
He figures out whether the market is trending or range-bound and accordingly applies the technical indicators to different phases. He identifies impending trend reversal and catches big moves in opposite direction. He reaps windfall profit by identifying and trading breakout from continuation pattern and uses volume to confirm. He also use momentum indicator in conjunction with chart for profitable entry and exits. He stresses on disciplined trading and has the rules for limiting risk per trade and how to work out the size of trading positions.
3. SUDARSHAN SUKHANI
A full time trader and developer of technical analysis software. Since 1999, when the first business TV broadcasts in India started with CNBC-TV18, he has appeared on thousands of market shows on CNBC-TV18 and Awaaz (Hindi language channel), providing in-depth and real-time analysis to investors and traders. Sudarshan is President of the Association of Technical Analysts, India (www.ataindia.org), and the country’s professional body for technical analysts, which is affiliated to the International Federation of Technical Analysts (www.ifta.org). He is a Chartered Financial Technician (CFTe), a recognition given by IFTA.
Sudarshan’s trading mantra is “Buy strength and sell weakness”. He interprets market message with classical Dow theory. He identifies the trend, euphoria and panics on chart. He can easily differentiate bull and bear market and can act accordingly. He trades all the different trade that coexists in the market. According to him “Trading trend is the most successful method of trading”. He steps aside during uncertainties. He has rules for profitable exits.
4. ANANT ACHARYA
In 1981 at an age of 15 he was introduced to chess. While no spectacular success was attained in this Endeavor, this activity enhanced the skill of pattern recognition, and the ability to think ahead in patterns. His indulgence in the markets was akin to average traders going through the ups and downs of the markets. In 2001, he tried his hand at business and registered as an introducing stock broker in India. From here on started the spectacular journey of Technical Analysis of Finance Markets. The very first introduction to Elliott Wave through Robert Preachers book ‘The Elliott Wave Principle’ changed the way he viewed markets. As he puts it, “I have learned about the market from three ‘R’s – Ralph, Robert and Richard In October 2005, a chance observation by his then 13 year old daughter led to the discovery of the First Key to the market. By then, life appears to have armed him with all the skills required for distilling and formulating the secrets of R. N. Elliott.
As the first key was being investigated, the other seven keys started appearing one after another. The keys are being applied for successful forecasts of the markets from then on. From 2001 to 2007 the business of stock broking grew multifold and in December 2007, he sold the business to concentrate on advising and helping others discover the Golden Keys to the markets. Major success includes calling the top of Nifty and Sensex in January 2008, the top of Nymex Crude, the reversal of Indian Rupee in February 2008, the bottom of 6200 for the Dow Jones Industrials, 9 months before it posted its bottom of 6470 etc. Thus his main skill is Elliot wave.
5. PRAKASH GABA
He got interested in Technical Analysis on a freak episode. He was buying on tips and sell on tips and he made a lot of money doing just that following other traders blindly, until that one fateful day when he lost all that he had made in one week.That was the day he decided that he would buy on his own tips and sell on his own tips only. He would generate his own tips. He quarantined himself from the rest of the world His quest for knowledge took him through this journey of Technical Analysis and he studied and researched the subject for over 16-18 hours a day, seven days a week and for over three years reading over 60 books on the subject and follows the same routine diligently to this day. He believes that Technical Analysis is one of the most difficult and challenging subjects that he has ever come across. He applies almost all basic indicator to his trade to find the perfect trend.
His Motto: Never give up…it’s so easy…anyone can do that.
His Advice: Never follow anyone blindly unless you are sure that he or she knows more than you do.
His Purpose: None of his readers should lose what they have gained already.
Also Read: Trading lessons from day-to-day games