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Today's Trade & News

Weekly newsletter - Traders life is as volatile as the market trend...

Trader’s life is as volatile as the market

Dear Members,

Our life is amazing; it takes so many turns as its progress. You all are aware of the fact that on certain occasions I always talk about the spiritual and other parts which are directly or indirectly connected to our life in our financial newsletter. Traders lives are just as if not more volatile than market trend. We watch the markets trend everyday and then the same way we should watch or analyze our life trend everyday at night before we go to bed. For the last few months I never brought these topics in our newsletter so I would like to discuss them once again in this weeks newsletter before we start the weekly trend as without awareness about our life’s trend it is very difficult to have a success in market.

The worlds economic system is run in such a way that we have to earn money to survive, even when governments or central banks print money and they could just distribute one million dollars to every family and make every one’s life easy. I know it’s should so exciting but unfortunately the system made by us doesn’t allow this.

If we get every month free money from government then who will work? There will be hardly any competitions, what we have innovated in world might not have happened. So we think deeply that this exciting thinking of getting free million dollars from government doesn’t seem right.

Okay, it is clear that we have to work hard and survive in this world, there is too much competition to earn money, and world system works in such a fashion that we have to earn money, because without money nothing works (unfortunately). Whether we like it or not money is very important and it has taken the central gravitational position in human beings lives.

One thing is clear and that is that we have to earn to send our children school, and to take care of daily affairs. To earn money people do all different types of Karma’s. Most of my readers are traders or investors and they have chosen to trade in market and make money.

Today I was in deep thinking process on market and an investors life after my meditations, and that’s the reason I have chosen to write on this subject.

When you entering the financial market, you are entering into an ocean of money where you can make a limitless amount of money but at the same time this ocean can drown anyone if you are on the wrong side of the wave. You have to understand how you are doing in your account, the same way how you try to understand the trend of any commodity or stock. I would like to give a few points which may help you to understand other hidden factors of the wave of nature and trading market. I am sure these points will make you to understand the relation with market and life.

Understanding first your own time cycle:

As per the wave of nature, first you have to know whether you are currently making money or not, and if you are not making money, it means that your wave cycle is against you, your timing of entering and exiting in trades is wrong.

Last year you were making but suddenly this year or maybe since the last two months if you are not making or losing money this means you are doing something wrong (knowingly or unknowingly). Nobody wants to lose, everyone entered in market to make money, every trade we make is with the intentions of making money but the results are always different. So, the first most important point, you should always watch your trading account very seriously whether it is going up or down.

So, the first principle of wave of nature, that as soon as you start losing money, then first thing you should do is, stop trading for the few days and analyze what is going wrong, what did you start doing different. You to have analyze, and enter back into trading but with a very small amount of money or with very little exposure (may be 1% of your capital).

If your small trade’s go against you then it is clear that currently you are in a negative time cycle, it is clear that cycle is saying stop taking risks otherwise you can lose everything you put in. Time changing indicator will be – once you see that your small trades are making money then you can enter big trades.

I give you example (many of you know but it is very correlated with what we are talking above here), in 2004 from September I started losing money for an account I was handling for my friend Michael Krupp, until 7 January 2005, not a single trade made money. Michael was very surprised and asked me Mahendra you know about markets and time cycle and your predictions in the weekly newsletter are coming accurate so how come you are losing money. I simple said in one sentence that my time cycle is against me. Many funny things were happening like, If want to make trade I was either away from computer due to any reason and never able to trade what I thought and eventually I traded something else which gave me loses, or after taking right trade I was too scare to hold positions and in any small drop and I used to book the lose after that market use to turn around the way I was thinking. May be phone call, traveling, taking children school or traffic, any obstacle use to block me from doing the right thing. I am sure many might have experienced these small incidences which either gave huge loses or profit.

January, 8 2004, I sold everything (account came down from 1.5 million to six hundred thousand). After two days of break I felt very positive, I took just two positions in stocks, both stocks went up almost 200% percent in a week. I told Michael, it looks like the time cycle is in my favor so great time to do some aggressive trading and he said go ahead (He always supported and trusted me lot in trading). Anyway, I started trading futures accounts for him; and yes account went from $19000 to $4.6 million within five months. I know you must be having these kinds of experiences in your lives as well, some times heavy losses and some time sudden gains.

Awareness is a great thing, which can make understand your own cycle, but the time of when your good cycle or bad cycle is starting is very difficult to know. Maybe any good Astro chart reader can tell your timing cycles but still it is difficult for any Astro chart reader to predict these cycles very accurately. My best answer is always spending five to ten minutes with yourself in morning as well as in evening and try to understand your life cycle. If you are going in the right directions then you should keep investing and trading, and as soon as you see that a few days or weeks are constantly not going in your favor, you should take a break from aggressive trading.

Watch your successful and unsuccessful trading cycles; make trading decisions carefully. I will continue with this topic in the weeks newsletter. Charity, deep meditations and sharing can create positive energy for you, which helps you to pass negative time cycles easily.

Here below is this week newsletter from 30 April to 4 May 2012