Comment on Mr Consistent returning incredible returns

Shaan commented on 13 Jan 2014, 01:16 PM

Thanks a lot Madan for these wonderful insights on trading. I was very fortunate enough to work very closely with one of the other 5 times zerodha challenge winner Pradeep Kumar A (http://zerodha.com/60-day-challenge, the first photo in the winners page). Here is what I feel the commonality between the winners

1. Concentrate on trading correctly than on making profits
2. Concentrate on MM and psychology than on strategy
3. Comfortable with the system who’s win rate is less than 50%
4. Thorough understanding of probabilities involved (Probabilities instead of Prediction)
5. Act on the edge without hesitation
6. Comfortable with the losing streaks… (Mathematically 13 losses in a row is a possible for 50% accurate system when the number of trades are more)
7. Understand the risk, reward
8. Have a system for handling uncertainty
9. Consider loss as a price paid for the piece of info
10. Keep the system simple and effective
11. they know that the common instruments for wealth creation can not even beat the returns of inflation and they also know that trading is one of the clean business which is scalable..
12. let the profits run while cut the losses short
13. have got all the rules in place (starting from how much money to invest to when to stop trading). We call it complete trading system
14. Do not switch between securities
15. Greed and fear does’nt rule their trading…

Wish Madan and the 10% of winners a huge success in their trading journey and life…

Madan, you promise to be the Ed Seykota for this group. Continue the good work.

Best Wishes….

View the full comment thread »