Its a cycle!

Fear and greed in action. Investment banks in UK are again hiring traders with aggressive bonuses..are we ready to start the cycle again?
http://www.ft.com/cms/s/0/13ce71c6-5fdd-11de-a09b-00144feabdc0.html

Trend Following

A trend following setup CANNOT answer the following questions:

1) Why the market is going up or down
2) How long it will continue going up or down
3) How much it will go up or down

What a trend following setup CAN do:
Make money for you in a systematic way based on probabilities and momentum and help eliminate emotions like fear and greed.

It is boring but makes money at the end of the day. Amen!

At the time of this post I am long on the Nifty. The positions seems to be working against me and will probably end in a loss - which happens in 50% of the cases. But the setup still makes money when traded with discipline.

Fear, Greed & Other emotions

Trading is all about controlling your emotions. Fear and greed..If a trader is out of the market and he sees the market rising and his friends making money, greed makes him enter...only to see the market crashing after he entered...If an investor is long and a stock crashes, fear makes him sell the stocks at lower levels...only to see the stocks rising again....fear and greed is what makes the 5% of people in the stock market make money from the other 95%.....how do we conquer fear & greed...using technical analysis and charting...just follow your charts for entries and exits....ignore your friends, relatives, stock analysts etc...this is the only way to conquer your emotions...In 2009 display emotions of love, caring for your near and dear ones...but conquer your fear & greed! Have a great new year and make loads of money in 2009!!