212° The Complete Trader : A Unique Comprehension to Add That "Extra Degree"

201 Pages·2017·1.36 MB·English

by  ROHAN MEHTA GOD

Notion Press Old No. 38, New No. 6
McNichols Road, Chetpet Chennai - 600 031
First Published by Notion Press 2017
Copyright © God & Rohan Mehta 2017
All Rights Reserved.
ISBN 978-1-946983-96-1
This book has been published with all reasonable efforts taken to make the
material error-free after the consent of the author. No part of this book shall be
used, reproduced in any manner whatsoever without written permission from the
author, except in the case of brief quotations embodied in critical articles and
reviews.
The Author of this book is solely responsible and liable for its content including
but not limited to the views, representations, descriptions, statements,
information, opinions and references [“Content”]. The Content of this book shall
not constitute or be construed or deemed to reflect the opinion or expression of
the Publisher or Editor. Neither the Publisher nor Editor endorse or approve the
Content of this book or guarantee the reliability, accuracy or completeness of the
Content published herein and do not make any representations or warranties of
any kind, express or implied, including but not limited to the implied warranties
of merchantability, fitness for a particular purpose. The Publisher and Editor
shall not be liable whatsoever for any errors, omissions, whether such errors or
omissions result from negligence, accident, or any other cause or claims for loss
or damages of any kind, including without limitation, indirect or consequential
loss or damage arising out of use, inability to use, or about the reliability,
accuracy or sufficiency of the information contained in this book.
Contents
Disclaimer
Acknowledgements
Introduction
What Is 212°: The Complete Trader All About
Be Ready to Become 212°: The Complete Trader!
Knowing Yourself – Survey
Chapter 1: Cold Water Shower Theory
Chapter 2: Trader vs. Investor
Chapter 3: The 5 Stages of a Trader's/Investor's Life
Chapter 4: A Happy Loss Manifesto
Chapter 5: Doing Things That Are DISLIKED
Chapter 6: The Don't Know Manifesto
Chapter 7: The Biggest Myth and the Biggest Boon
Chapter 8: 3 Types of Traders & A Master Formula to be the Wealthiest
Trader/Investor
Chapter 9: The 4 Monkeys Approach
Chapter 10: The 3 Most Essential Hobbies of a Trader/Investor
Chapter 11: The 6 Key Reasons Why 90% of Traders/Investors Face Losses
Chapter 12: The 7 Most Important Questions to Ask before Taking a Trade
Chapter 13: The Bull, Bear and Pig Phases
Chapter 14: The 2 Best Tools for Trade & Investment
Chapter 15: 212° Investment Thesis
Chapter 16: Formula No. 21
Chapter 17: Magical Money Management
Chapter 18: 212° Trading/Investment Systems Designing
Chapter 19: 212° System Backtesting
Chapter 20: The 3 Important C's for Trading/Investing
Chapter 21: 212° The Spiritual Trader
Chapter 22: The Discipline Factor
Chapter 23: 10 Qualities to Trade Like Rama & Not Be a Ravana
Chapter 24: The Day of a 212°: The Complete Trader
Chapter 25: Traderpreneur – Trading as a Real Business
Chapter 26: The EPW Model
Chapter 27: 12 Learnings for Being a 212° Trader/Investor
Chapter 28: 21 Things I Wished to Have Known before I Started
Trading/Investing
Chapter 29: The KIDS Approach
Disclaimer
Mr. Rohan Mehta is a Professionally Independent Trader & Investor; he is
neither a SEBI Registered Investment Advisor nor a Research Analyst. The book
is solely based on the experience of his trading and investing Journey. Though
every bit of this book is followed and tested by Rohan, the reader should still
ensure due diligence, before taking an Investment or a Trade; they should rather
contact their Financial Advisors or Mentors. In some topics discussed in the
book, Rohan’s thought process might possibly be opposite to conventional
theories of markets, but a reader must understand that everyone is different, and
has his own niche in trading and investing. The Risk of loss in trading in Future
Contracts, commodity, options, or equity investments can be substantial.
Therefore, an investor should understand the risk involved in investing/trading
and must assume responsibility for the risk associated with such
investments/trades. One should carefully consider whether such trading is
suitable for him in light of his circumstances and financial risk-taking ability.
Acknowledgements
I would like to acknowledge: Almighty God, who is the Co-author of this book;
the one who motivated me to write to the best of my knowledge and gave me
this prime profession and wisdom of Investing and Trading.
My Grand Parents – my Grand Father who gave me an invaluable amount of
50,000 rupees to Invest in Stock Market, and the one who always believed in me
when others failed to do so, and my grandmother who always told me to strongly
believe in God and to take a calculated risk in life.
My Parents and My Sister who were always there with me in my good as
well as bad times.
My Wife Namrata and Adorable Daughter Vani for Supporting and
Motivating Me to Achieve All of My Strenuous Goals and for Their
Sacrifice of Family Time That Was Allotted to This Book.
Mr. Partha Shah who motivated me to enter the Stock Market Profession.
Mr. Hitesh Mali for accompanying me in the journey of learning and
understanding the markets and being my mentor figure throughout.
Mr. Tejas Sarvaiya who has been an amazing support, more than a friend, a
“Shifu” who advised me to explore research as a career, and now as a Trading &
Investing Partner.
Mr. Vishvesh Chauhan who suggested me to read Michael Covel’s Trend
Following and the one who showcased me Trend Following Systems.
Mr. Bharat Sadrani who encouraged me to learn technical aspects and apply
them in assessing markets. Special thanks to his Creation of Bazaar Indicator
Software that has been a key tool in enhancing my skills as a Trader and
Investor.
Mrs. Jigna Patel, Mrs. Vibhati Gandhi and Mr. Hardik Gandhi along with
the Whole Turtle Team for being colleagues with an exceptional value and
support system.
Mr. Chirag Shah and the Full Jainam Family who motivated me to keep
reading as a hobby and taught me principles of life.
Ms. Ajita Parekh for helping me in publishing the book.
Mr. Joel Osteen – My Spiritual Mentor, who made me believe in God!
I am grateful to great traders and investors Mr. Rakesh Jhunjhunwala, Mr.
Utpal Sheth, Mr. Radhakrishnan Damani, Mr. Atul Suri, Mr. Ed Seykota, Mr.
Michael Covel, Mr. Paul Tudor Jones, late Mr. Jessie Livermore, Mr. Warren
Buffett, Mr. Charlie Munger, Mr. Carl Icahn and many more for being a
recurrent inspiration.
Special Acknowledgement to you for buying the book and supporting me
in my purpose, which has now turned into our purpose.
Introduction
Namaste!
I was Born in Bhavnagar, Gujarat, in a middle-class family where education
stands as an essential requirement for getting a good job. However, throughout
my academic life, I had always been an average student, till I discovered the
passion for markets – in fact, every Indian Gujarati Baniya inherently holds it in
his blood. I started my professional career as an Investor more than a decade
ago, taking a loan amounting to Rs 50,000 from my father, which rather my
grandfather had forced him to lend. Eventually, I immersed all the lent money in
trading like an amateur Trader. From that day onwards, the urge for returning the
borrowed money and understanding the mode of making money from the stock
market had commenced.
To be honest, during the childhood, no one aspires to be a “Professional Trader
or an Investor” as all the successful traders or investors I have encountered,
entered the market by chance and not by choice/plan.
The irony turned out to be “A dumb fellow entered the arena and made the
intelligent fellows work under him.”
During the early phase of my career, I had tried my hands in all the possible
avenues in the stock market, such as a technical trader, fundamental investor,
news trader and speculator. However, I failed to outshine anywhere. Then, one
fine day, while conversing with my friend Mr. Vishvesh, a Fund Manager in a
leading brokerage house, I shared my concerns regarding my urge to explore the
techniques for trading and he suggested me to read Trend Following by
Mr. Michael Covel and it changed my life forever.
While reading the book, I extracted numerous
interesting logics and techniques for being a trader/investor and a trend follower.
Moreover, this book had lent me a curiosity to read more and more to gain
knowledge and evolve. In today’s date, I have read almost every book available
on Amazon in the areas of trend following, traders’ psychology, discipline,
money management, biographies and market wizards etc. Thus, this book is a
blend of thoughts of all the great authors that inspired me to be a 212°: The
Complete Trader as well as my inferences drawn from real-time trading.