January 20, 2019 - Page 2 of 19 - Financial Occultist

Making use of the Fib

“Fibonacci” is a well-known word. It’s the name of an Italian mathematician who became famous by discovering a peculiar series of numbers (0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc).
Every number in this sequence is the sum of the two preceding ones. The ratios of these numbers mysteriously correspond to the proportions of things in the universe, from sunflowers to galaxies.
Long ago traders found that Fibonacci numbers and ratios can be suitable for technical analysis. Firstly, they are nicely mathematical and add a pleasing element of nerdiness. Secondly, they produce objective price reference points and thus reduce the subjectivity of analysis if used correctly.
Today, MetaTrader has a built-in set of Fibonacci tools. It includes retracement, expansion, fan, arcs, and time zones.
Fibonacci tools are used for 2 main purposes:

To identify support and resistance levels (Fibonacci retracement).
To predict the potential scope of price movement (Fibonacci expansion).

Let’s focus on Fibo retracement levels and Fibo expansions as these tools offer the greatest merit to Forex traders. (more…)

Favorite Quotes from “The Big Short”

20-Jan-19 10:40 pm

Education

Anirudh Sethi

Here are some of my favorite passages in the book:

On bank stocks’ book value:

He concluded that there was effectively no way for an accountant assigned to audit a giant Wall Street firm to figure out whether it was making money or losing money. They were giant black boxes, whose hidden gears were in constant motion.

Regarding the value added by sell-side analysts:

You can be positive and wrong on the sell side. But if you are negative and wrong, you get fired

On Manipulation of the masses:

How do you make poor people feel wealthy when wages are stagnant? You give them cheap loans

On Recognizing when a credit driven bubble is about to burst: (more…)

It's not the trade, it's the battle.

20-Jan-19 10:29 pm

Education

Anirudh Sethi

Too many traders believe that their last trade is a reflection of just how good of a trader they are (but they are the only ones who feel that way about themselves). This boils down to one word – expectation. If you expect to win all the time, or even the vast majority of the time, you’re setting yourself up for a lot of heartache. That frustration, though, is the very same force that will truly make your negative perception of yourself a reality. And even a good trade can be damaging if you let it warp your disciplined approach. The fact of the matter is that this is a game of odds, and should be played over a long period of time. Focus on the war – not the battle.

Success is more than what you can see!

20-Jan-19 10:24 pm

Anirudh Sethi

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The relationship between beliefs and experience can be seen and understood through the figure below

20-Jan-19 10:23 pm

Education

Anirudh Sethi

Beliefs and experience

12 Quotes From ‘Trading In The Zone'

20-Jan-19 10:22 pm

Education

Anirudh Sethi

1. Attitude produces better overall results than analysis or technique.

2. Positive winning attitude = expecting a positive result from your efforts, with an acceptance that whatever results you get are a perfect reflection of your level of development and what you need to learn to get better.

3. Winning in any endeavour is mostly a function of attitude.

4. Losing and being wrong are inevitable realities of trading.

5. The market has no responsibility towards the individual trader. Taking responsibility means acknowledging and accepting, at the deepest part of your identity, that you – not the market – are completely responsible for your success or failure as a trader.

6. If you perceive the endless stream of opportunities to enter and exit trades without self-criticism and regret, then you will be in the best frame of mind to act in your own best interest and learn from your experiences.

7. You will need to learn how to adjust your attitudes and beliefs about trading in such a way that you can trade without the slightest bit of fear, but at the same time keep a framework in place that does not allow you to become reckless.

8. Trading is an activity that offers the individual unlimited freedom of creative expression.

9. The unlimited characteristics of the trading environment require that we act with some degree of restraint and self-control, at least if we want to create some measure of consistent success.

10. The hard reality of trading is that, if you want to create consistency, you have to start from the premise that no matter what the outcome, you are completely responsible.

11. One of the principal reasons so many successful people have failed miserably at trading is that their success is partly attributable to their superior ability to manipulate and control the social environment, to respond to what they want. (Unfortunately) the market doesn’t respond to control and manipulation (unless you’re a very large trader).

12. The tools you will use to create this new version of yourself are your willingness and desire to learn, fuelled by your passion to be successful. Successful traders have virtually eliminated the effects of fear and recklessness from their trading.

Only Price Action-Nothing Else

20-Jan-19 10:18 pm

Education

Anirudh Sethi

Trading Strategy for Nifty Future-04th October’10

20-Jan-19 10:08 pm

Education

Anirudh Sethi

Losing traders often take themselves quite seriously and seldom find humor in market analysis or the trading environment. Successful traders are often the funniest and most imaginative people you will ever meet. They take joy in trading and are the first to laugh or relate a funny story. They take trading seriously, but they are always the first to laugh at themselves.

CONCLUSION:Its no wonder that one of the first things psychiatrists test for when treating a patient is whether or not the patient has any sense of humor about his affliction. The more serious the tone of the individual, the more likely that insanity has set in.

Above 5566….Target intact of 6336-6593 level !!

On Going is 34th Month from High of 6336 & This week will complete 144 weeks from High of 6336.

(Major Turning …Not ruled out )

I know u all missed rally from 5356 (Low level )…Kissed Trendline and Taken U Turn.No worry @ all.

But…..Why u all missed EXPLOSIVE rally of life …Once it closed above 5566 for 3 days and then Weekly close was also given.

-In Just 15 sessions it flared to 6184 level-

Jump of 618 points !!

On Friday it was Boldly written :Small Triangle formation had occured !Today or by Monday……..Exactly will come to Know :Nifty Future will zoom to kiss 6200 or will crash to 5800 level.

-On Friday itself……zoomed by 154 points !!!

-Again ,Iam writing here…Not interested to Impress anybody…that this happened that happened….(It’s by God Grace and Hard work only ).Levels ,Time will not give u money :U should have Strategy and Trading is an art (90% will never earn …it’s my challenge )