Wednesday, April 8, 2009

My Journey Down Dalal Street: Starting a New Series

I have decided to start a new series of articles with attached title “My Journey Down Dalal Street”. In this series, I will write several experiences in the journey of a share trader trying to become successful at Dalal Street. I will try to maintain the chronological order of stages a trader has to go through.

Behind The Title

the Dalal Street sign.. does it look like a magical sign?Image Source (the Dalal Street sign.. does it look like a magical sign?)

Don’t think that it will be a boring series because the title says that it is my journey. I will not literally write my stories, but I will put down the general pattern of lessons I had learnt through my own trading experience. The title came to my mind as I was thinking about various topics to write on. I also thought about another title “A Journey Down Dalal Street”, but felt that including “my” would make it much better. By now you must have thought why not “Your Journey”, I don’t think that sounds very good.

For those who wonder about the name “Dalal Street”, it refers to the Bombay Stock Exchange which is the place our orders get executed. It sounds similar to Wall Street, the US version, but that is why it sounds good. They say that the street BSE is located has this name. But I physically has never been there.

it is actually a side street to Dalal Street but gives a view to BSEImage Source (it is actually a side street to Dalal Street but gives a view to BSE..)

Behind The Series

One of the reasons why I am starting this series is because of my learning that in the stock market every one has to go through the same lessons. Some times through the same phases one after another. With each phase a trader sharpens his various skills in trading professionally. Many traders start as investors or gamblers and finally turn into regular traders.

But all this does not happen in the same duration of time for all people. Different people take their own duration of time to pass each stage and this is where the no. of years of experience of a trader becomes invalid to judge his/her advice.

A Revelation From My Dream

One day I woke up from a dream with a wonderful revelation. I don’t remember what was the dream. But having been trading, tracking stocks and thinking of various ideas of how to trade them, these thoughts entered slowly entered into my subconscious mind. By the time I was about to wake up, I was just saying to myself “What a wonderful thing this stock trading is? Everyone has to go through the same phases and experiences.. No one is spared just like that even for a part of it. It always comes back one time or the other.”

It is the Same for Everyone..

Jesse Livermore - The turn of the century traderImage Source (The turn of the century trader..)

This had a significant impact on my behavior in general share trading conversations. I realized that there is no need to argue with others on some topic. Those arguing might actually be going through some lessons they are yet to learn but you have already gone through. It is hard to continue conversations when the ego of the other person comes in the middle. I end my argument at some point thinking “it does not matter whether you are right or wrong, but how much you make when you are right!” (Quote: Jesse Livermore).

The real joy for me did not come from convincing, subduing or teaching others, but from the results of my own trading. This is not realized by many traders easily.

Of course I don’t say that I am the ideal perfect trader. I too have my own problems. But I have the will and readiness to improve my trading. Through my journey of stock trading, I tried not to repeat the same mistakes as and when I learned them. That shaped my thoughts, skills and approach in trading for better. This of course is one thing where many people differ.

Oh.. did I say that today is Wednesday?Image Source (Oh.. did I say that today is Wednesday?)

Watch out for the Series..

I will continue writing other articles alongside. But the tough part of all this is the need for time to maintain the regularity. Right now I can’t think of writing a post per day. But I can make it if I plan and write ahead over a weekend. This is going to be timeless wisdom so it shouldn’t matter when I write them or when you read them. You can always come back for more or for the same again.

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