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Fast Money on Both Sides

  
Analysis, Education
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www.AnirudhSethiReport.com is Double Whammy, Double Bonanza, Double Hit, Double Edged…… Whatever adjectives you may say…. We are accustomed to be accurate on Downside and Upside, intra-day or for swings.  Today too we have exactly hit 4062 in global panic and in reversal we have already hit our preliminary up-target 5070 and heading to 5090, 5110. This too is happening only to Indians. Mera Bharat Mahan.

-Above are the Two Intraday  messages sent to our Subscribers.

 

*Above 4978,My Target for NF was 5029-5045 & then 5090-5106 level.(U know it kissed 5075 level )

*Bank NF :Above 9334,My Target was 9443-9479 & then will kiss 9588-9624 level.

One JOKER had commented that little experience and little knowledge of  chart…and anybody can predict.(I had not written any where about Art or Science of Technical Analysis )

–15 Years back only 2-3-4 persons were writing about Technical Analysis.10 year back just 10-12 people were analysing on basis of chart in India.And now every 2nd person knows chart/levels and every thing….but see….How many are Successful as an Analyst /Trader.

Technically Yours

Anirudh Sethi/Baroda

12 Biggest Trading Losses in History

  
  Education
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#12 German billionaire Adolf Merckle, one of the 100 richest people in the world, has killed himself by jumping in front of a train—emotionally “broken” over a bad bet on Volkswagen last year.

Merckle’s business interests came out on the wrong side of last year’s short squeeze of Volkswagen. Rival Porsche silently cornered the market on Volkswagen shares, and when they revealed the extent of their stake, the price of Volkswagen stock shot up to levels that made it briefly the world’s most valuable corporation. Many hedge funds who had bet against Volkswagen shares lost huge amounts of money, while Porsche made billions in profit.

Merckle, whose personal wealth was estimated at more than $9 billion reportedly lost a billion alone on the Volkswagen stock, which shocked his employees. The loss led to margin calls from other creditors and threatened to unravel his entire private business empire. Full Article

#11 Nelson Bunker Hunt and William Herbert Hunt, the sons of Texas oil billionaire Haroldson Lafayette Hunt, Jr., had for some time been attempting to corner the market in silver.

The Hunt brothers had invested heavily in futures contracts through several brokers, including the brokerage firm Bache Halsey Stuart Shields, later Prudential-Bache Securities and Prudential Securities. When the price of silver dropped below their minimum margin requirement, they were issued a margin call for $100 million. The Hunts were unable to meet the margin call, and, with the brothers facing a potential $1.7 billion loss, the ensuing panic was felt in the financial markets in general, as well as commodities and futures. Many government officials feared that if the Hunts were unable to meet their debts, some large Wall Street brokerage firms and banks might collapse.

To save the situation, a consortium of US banks provided a $1.1 billion line of credit to the brothers which allowed them to pay Bache which, in turn, survived the ordeal. The U.S. Securities and Exchange Commission (SEC) later launched an investigation into the Hunt brothers, who had failed to disclose that they in fact held a 6.5% stake in Bache. Full Article

#10 Under the leadership of CEO Heinz Schimmelbusch, German metals and engineering giant Metallgellschaft was on the brink of bankruptcy after losing $1.3 billion on speculative bets.  The firm bet on an increase in oil prices in oil futures markets, but oil prices dropped instead. Full Article

#9 Robert Citron lost $1.7 billion for Orange County, California forcing it into Chapter 9 bankruptcy.In 1994, Citron was Treasurer-Tax Collector for Orange County, California. As treasurer, Citron used a series of highly-leveraged deals that included repurchase agreements and floating rate notes.  Full Article (more…)

Just Avoid These 7 Words -If U Are A Trader

  
  Education
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Be careful how you use the following words and phrases as they become road blocks or worse take you down the wrong path.

Should– Phrases include: “The market should have” and “I should have”. Those phrases are often used to socialize losses. They are a strong signal something is off. They should be used to aid you in correcting your vision not make you feel better.

Must– Phrases include: “The market must…”, “I must make money”, or “I must trade”. The market does not have to do anything and either do you. When you use the word “must” it is hardly ever from a position of strength. The market knows when you are desperate and will take full advantage of you. Keeping your expenses as low as possible will make it easier to not make those statements.

Will– Phrases include: “The market will..” and “I will make money”. Once again the market does not like to be told what to do. It is the bratty kid screaming at the tops of his lungs. The word “will” relaxes your mind, similar to “should”, people use it to be lazy instead of a black background in an otherwise light picture. You can do everything right and still lose money. That is why trading is so effective at diminishing confidence. In most every activity, if you do everything right you are going to get the desired result. Doing the “right” things is bare minimum. Of course, over time you will get paid for doing the right things but it is never when you think it should be and hardly how much you anticipated. (more…)

The Market is Not Flexible, But You Are

  
  Education
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In trading, and in anything in life, we need to be focus and committed to achieving excellence in what ever we do. However, you need to remember that there will always be more than one way to reach a destination. Yes, let me repeat, there will always be more than one way to achieving a goal.

Stay committed to your decisions but stay flexible in your approach.

If you believe what I say, and you should at least try to, then you’ll realise that the methodology that you’ve learnt about trading is the only thing you know at the moment. And, unfortunately for many, you don’t know what you don’t know.

To overcome that, you need to be hungry and curious about learning new markets and new trading systems all the time – continuous development. Nonetheless, you’ll also need to be discipline and structured about how you learn them. The last thing you want to do is to be jumping around trading everything that moves in the market place. Do you get my point?

Once you become a flexible trader, you can trade anything you want and make as much money (from the market) as you like. Right?

Now, the key question. If the market has no influence on you (as to how you make money), how can it have any influence on you now?

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