Give a MAN a fish and you feed him for a day. Teach him how to fish and you feed him for his life time — Italian proverb.
🙂 I know I know what you are thinking. You might be thinking one more proverb without any proof or evidence. If you think that way please stop reading below.
My search for holy grail
If you are still reading this, that means you think above proverb has some substance. So let me start sharing my experience. Good part of my early trading career went like every trader’s journey for a search of system which can give me consistent profit day in day out so that I can leave my job, sit in front of the screen, see myself happily going to ATM to withdraw my profit at the end of the month. I would have tried everything from traditional technical analysis, Elliott Wave to more sophisticated GANN Theory. They seem to work in when I am learning in trainers PPT and when back tested visually but somehow stopped working when I started trading putting my real money.
This experience led me to search for something more systematic where there are defined rules for entries and exit and read many books. Then I realized the systems are only small part of the success for big traders. There are more factors like Money Management and Psychology. Then there was a pivotal moment where Nithin Kamath of Zerodha started interviewing successful traders who have really walked the talk. One such trader who caught my attention was Madan Kumar. During my readings of working on position sizing, I read a concept called Fixed Ratio which was developed by Ryan Jones. I found lot of merit in using it to increase the small account to large account. Interestingly, Madan was the first guy from India I heard saying about Fixed ratio and I got hooked on to the article. You can find the article here.
One day, I saw my friend Kirubakaran putting a tweet mentioning that he had exciting time with a group of traders from Chennai and I saw Madan there which again intrigued me and luckily I got his twitter handle (@madan_kumar) which lead me to his website. Like every other trader one tab caught my attention, Performance – Intraday options trading account. I checked it and what I saw was completely unbelievable. He was trying to move 3 Lac account to 30 Lac and I remember he was somewhere around 12 lac in less then a year. Then started searching for whether he can teach us that in training and it will be the end of my search for holy grail 😊. By the way if you want to know he has already crossed 30 Lacs.
The Webinar that stopped my search
So I enrolled for his webinar and got super excited for the session in Mumbai.
Day 1 : Session started with introduction and what was the motivation for us to join the session. Many mentioned about psychology and money management but deep down I know every one of us wanted that secret formula. Session I started with understanding of marking pivots although bit complicated but I told myself if it would be easy then everybody would be doing it. Continued the session 2 of marking pivots with Madan on realtime charts and by lunch we finished the course in marking the pivots and we were like, wait, we thought it would be 2 day session and we are completed with the main part by lunch? Thoughts ran in my mind, may be he is hiding some secret (later realized that he has given more than that) .
After lunch we started playing money management game that’s where I started getting more interested as I run similar kind of experiment with students and feel that its the most important aspect of trading and fun too. To see everyone (including me) excited when we are right and sad when we lose was a lesson which you will not get in Psychology class. With this game coming to close there was clear understanding that with same rules, everyone had different win and loss. That dawned to us that if you teach the same system with exact entry and exits, but all will have different results based on their risk appetite and psychology, which is true in your real life trading. We talked about some wisdom of day trading which I will not disclose in print and let you figure out yourself.
Day 2 : The day started with revision of previous day and money management concepts we learned. There was some feeling that there has to be a secret that made him turn 3 Lac to 12 Lac and then came that part. No, it was not a trading system but mindset of a trader. This is where everyone gets it wrong which he nails it with his vast experience. There are concepts that retail traders are stuck and he proved with many examples that why it is dangerous. Day 2 was the most difficult for me personally as he was talking what I believed are cornerstones of trading and proving how they can be detrimental to someone’s success. What’s usually not comfortable is the right thing to do in trading.
You know what is the success of his training, not the people who share screenshots of profit thanking him for his knowledge but there were few guys who accepted that trading is not for them yet, and they still need time and capital to take trading as their profession which I have never seen.
Now you will be thinking that there is nothing different but take my words if you are serious about your trading career, I think this is one of the best training I have attended and you should attend too. Rest you are the best judge of your time and money.
After the training, I felt trading is not for me atleast in near term. It takes serious and continued effort to succeed and if one thinks of multitasking with day job it doesnt work that way.
When I thought I should become full time trader I thought learning CMT is the right way. And you have passed CMT and praising his talent. I can understand madan sir is great. But you praising him is just taking my respect for him another notch.
Hi Vishal –
I just read your Twitter post of a little over 2 years ago – which includes your writeup on Madan Kumar’s seminar. I find your article very interesting and informative.
I’ve been a full-time trader for almost 30 years now, and also follow Madan avidly. I intend to attend his next webinar.
The paragraph about you at the end of the article says you are co-chair of the Mumbai Chapter of the CMT. I’m in Mumbai too … and would love to connect with you. (I’m not a CMT.)
My name is Narain Mahtani. My email address is email@example.com, and my mobile phone number is 98200-44766.
I look forward to hearing from … and in due course, meeting with you.