Trader-speak!
Moneylife Digital Team 07 September 2017
Online share-trading has eliminated the mandatory visits to Dalal Street and algorithm and programmed technical analysis eliminated the old-timers’ obeisance to the ‘mind’ of the market. But you can still spot the occasional veteran by the trader-speak that peppers his explanation for every market peak, trough and churn of the market. Here is a philosophical set of phrases that should help even a newbie to remain grounded!
 
Bhaav Bhagwan
Volume Pehelvan
Samay Balwan
Sentiment Shaitan
Sauda jo ghuma sakey, wohi sultan
 
Bhaav Bhagwan: Price is God—As top trader Ed Seykota has said: “It can be very expensive to try to convince the markets you are right.” Cut out all the noise about macro picture and stories surrounding companies’ future. The current price has to be higher than the purchased price. That is all that matters. If not, traders should start worrying.
 
Volume Pehelvan: A stock that rises or falls on low volumes is suspect. Volume adds weight to the directional change—this often applies to the overall market also. 
 
Samay Balwan: Time separates the true winners and losers. This is equivalent to US market lore which says: There are bold traders and old traders but there are no old, bold traders. Another interpretation of the saying is you get your dues in time, not before.
 
Sentiment Shaitan: Sentiment (read fear and greed) is the devil—it ruins those who are carried away by it. 
 
Sauda jo ghuma sakey, wohi sultan: This resembles one of the oldest sayings in the market that goes back to early 1820s attributed to British economist David Ricardo who was also a trader: “Cut your losses quickly.” Many traders have been ruined by ignoring this simple but hard-to-follow rule.
Comments
pradip
9 years ago
एकदम सही.
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