Attitude is claimed to be the key to success, regardless of the sector you select . Every successful person has the proper mindset, perseverance, and a positive attitude. Serial entrepreneurs know this secret sauce of success.
Jitendder Singh, an entrepreneur, has tasted success quite once and applied his learning to trading. After losing an eight-figure amount within the market, he hibernated to ponder upon his mistakes and came back with a winning formula, which was supported a technique seldom used – Market Profile (MP).
An avid reader and traveller, Singh also loves music, which, he says, helps relax his mind and increase focus.
In this interview with Moneycontrol, Singh speaks about his comeback, his strategies and offers some sound pieces of recommendation for brand spanking new traders.
i used to be born and mentioned in Lucknow and did my graduation in Economics (bronze medallist), then did my MBA. I also completed the info Base Administrator Course from Oracle Corp, US.
I have a passion for reading and an ingenious bent of mind. I started my career as a copywriter in a billboard agency, and, post-MBA, worked in multinationals like Groupe Pernod Ricard in India, handling brand management and marketing.
Thereafter, I started a firm, which provided solutions and manpower for BPOs. The firm did alright , and shortly it became one among the most important within the domain in NCR. In between, I also started a construction firm and undertook some independent projects.
I was introduced to the planet of trading in 2006 by a lover . I still remember my first trade –it was Reliance. I bought it and sold it intra-day, booking profits.
During the primary few years, I traded everything — from intra-day to Futures and Options. it had been a typical retail trader behaviour. i used to be over-trading, doing random entries and exits, and going by gut feel/ speculatios. In those days, one could get good leverage from brokers, which was a double-edged sword. I blew my trading account multiple times, and, subsequently, over a period, my losses mounted into eight figures. Slowly, I became good at reading charts, but the losses still stood looming sort of a tall shadow.
Singh: In those days, Twitter/ YouTube weren’t the goldmine of data it’s today. One day, while being on vacation, I realised I had been successful in other businesses, but not in trading. The losses in trading were making me commit mistakes repeatedly. I extended my vacation, and for a couple of days, isolated myself, ruminating about my trading and therefore the process, and the way to show it around.
I understood that trading not only involved having robust strategies, but psychology, execution, and discipline played an outsized part in being successful.
In short, I realised that a process needed to be developed and adhered to, if I wanted the trading a part of my career to be profitable.
It became clear to me that a trader must have the traits of a ‘turtle’, and that i had to vary my traits of a ‘rabbit’. Overnight riches weren’t possible in trading, and if I didn’t change the way i used to be trading, I wouldn’t be ready to recover my losses.
I took it upon myself as a challenge and promised that regardless of what proportion time it took, i might not hand over , till I recover all the cash .
It was essential that I had to know the character of the beast called stock markets, and therefore the initiative was to prevent trying to trade as per my bias, instead of accompany price action and quickly adapt.
I started studying psychology and its impact on trading. I started meditating (which has become an important a part of my daily routine now). I also came to understand about Market Profile (MP), and over a while , developed a group of strategies that combined the simplest of both MP and traditional technical analysis.
Fortunately, my other businesses were running well and that i could channelise resources once more . One thing I clearly understood and now strictly adhere to is, capital protection.
Markets will always be there, but one needs capital to be a neighborhood of it. Capital should be treated like your daughter and guarded at any cost.
Two things I evolved was the Daily Target (DT) process—a system of intra-day trading and therefore the phrase Discipline Bhagwan Che!!. I stuck this phrase on my screen.
It took a grind of 6-8 months on behalf of me to unlearn and relearn and obtain an edge on intra-day and positional trading—especially the discipline part. there have been days once I would just do one trade each day . Slowly, patience and discipline seeped into my personality, and that i managed to recover not only all my losses but to form profits consistently.
How does one trade now?
Singh: I trade using MP, which may be a technical concept with a singular charting technique developed by Peter Steidlmayer. It uses TPO (time price opportunity), represented by alphabets. Each alphabet denotes a 30-minute period. MP may be a tool which is employed to structure market data as profiles.
The methodology represents the distribution of a market during a given period. It presents variety of basic elements from the market in an easily understood graphic format, which, when analysed properly, can help to require trades. Here are the most points.
C extension failure
The first hour of the day is mentioned as initial balance (IB).
After the IB, if we get an extension within the C period, which is made within the third 30- minute interval , over the high or low of the worth range of the B period on low/moderate volumes, then if the worth enters back to the B period range, we take a contra trade the other direction of the initial C period extension.
Stop Loss (SL) are often placed at the C period highs/lows plus some filter. Target would be as per your trading objective, capital deployed and risk-reward ratio. the subsequent charts would help illustrate the same:
