The Mathematics of Speculative Trading

Heikin Ashi Charting and Fibonacci Ratio: Win and Lose

Software for technical analysis for trading ? just plain and simple confusion.

(but you can make your own worksheet for your very own charts with your own entry and exit points).

I talk about distractions with technical indicators, giving examples of my own when I lost money because of their confusing signals. Most certainly, no tips or recommending stocks, in fact, trade very few, preferably, only the index, not even stocks. The less, the better.

And absolutely, no competing with the "expert's" views. ( if the tips worked, why are they telling us?, Why do they want our fees. If they had a secret formula for making huge sums of money, why would they give it away for your meager amount?) Makes no sense.

But you can have your own triggers and stop-loss in from a very simple worksheet, which you can make yourself, No software, just your one page worksheet.

There are NO huge profits in speculation. All you can have is average profits.

You can empirically see with the most popular charts like the Heikin Ashi, and with Fibonacci retracements, that, you can and will continue to LOSE half the time, but also WIN half the other time. Just like flipping a coin!

(But you may also see that your winning trades will make twice the money that your losing trades will lose. So, overall, you will still make money over a length of time, if you take all the trades that your charts show you).

You may check this out with the Dow Jones, step-by-step, plus the FTSE 100 and the NIFTY 50. As for me, In Nifty, out of 41 trades in the past nine months, I lost money in 25, and made money in only 16, but overall the net gain was 475 points per Nifty. That is an average, not huge money. But I am not ashamed of the losing trades. I know perfectly well I am going to lose half the time, ( in this case, more than half the time), and still make some money if I keep at it, and don't give up.

I agree with Kaushik Basu, the Chief Economist at World Bank, when he says that the so-called experts have a best kept secret, which is that they do not themselves know why the stock market moves the way it does.

Trading maybe a waste of time ( most activities are ! ) but not of money though, if you have a good trading plan. 

For actual trading strategies playing out now, visit my website at NIFTYTRACKER.com .

More in the book ...