I honestly don’t know where the markets are heading next. I cannot predict where and when the top and bottom shall take place. But I learnt it hard way, what I should do "stay" or "quit" when price is traveling beyond my reference levels.

Friday, January 6, 2012

SAR, the Number , a math not a myth!
A Trader's view on What is SAR Trading and How to Trade on SAR system – Post # 1

I thought of sharing my experience on mechanical trading@SAR Trading. And, try to solve some of the puzzles about SAR Trading, to the best of my ability. I post it with the hope that it would help everyone in a small way.

As a trader, in our initial days all of us tend to read a lot about SAR Trading. We do practice and test everything we read. We come across several doubts and obstacles when we learn or do our initial trades. We mostly end up quite confused and finally leave the system half-heartedly as we could not cope up with the system.

SAR Trading is the concept followed by several traders to keep the trading life peaceful and profitable.If you have a good guidelines and positive approach, no doubt that SAR Trading is the best way to make consistent profits.

This article is mainly,

  • For the beginners who are in the first phase of their trading career.
  • For the ones who gained some experience but still struggling to place their foot strongly in the markets.

Most of the suggestions, I have made here are keeping the above two category in my mind. I request all the well experienced and succeeded traders to bear with me as you may find some of my opinions are strange and weird.

Ok, who is a Beginner?

  • A person who has only traded for about a year in the markets and struggling to find his rhythm.
  • A person who is experienced in the markets but still not able to get even 25-50% annual returns from his investment.

Why do we Trade?

To earn money.

This is the foremost agenda.Passion and addiction to trading comes later. We gather knowledge prior to trading. Later in the process of trading, we earn experience from the way we earned or lost money.Successful transformation of this experience turns us to be winning trader. Who fails to utilise the experience effectively becomes loser and continue his search for a Holy Grail. But the fact is, he will never meet such Holy Grail in his life time, if he fails to use his experience.

What is SAR Trading?

SAR Trading is one of the best trading strategy to survive in the markets, especially for the beginners.

SAR Trading is Stop And Reverse trading. It is a mechanical trading system, which is to be followed without any interruption by the discretionary decisions. We stick to one system and one plan and follow that religiously throughout a year or a specific period to reach our financial goal. It is as simple as doing Buy and Sell as per the signals/indications from trading system found or developed by you.

You can do severe interrogation when you are in the stage of developing your system. But once the system is tested, developed and set into action, there should be no doubt and interruption to follow the system. You have to just simply follow the trading system to initiate trades.

SAR Trading keeps you engaged in the trade “always”based on a specific trading system. You remain holding the trading position under all circumstances.

“Consistency pays” is the bottom line and success formula of the SAR Trading concept.

Planning to make series of posts on SAR Trading. We will go through the following in the next post tomorrow.

1 comment:

chauhan said...

hi assortZ sir
very informative blog
why is their is no new post from long time?
r u chenge your blog or eles any where?
loking for reply
thanks