'Channelize' your Energy

Apurva Sheth
As I sit down to write this letter to you on this last day of 2014, I have already been asked a number of times on what are my plans for the 31st by my friends and colleagues.

Do you think what one does on the eve of one day will matter so much compared to what one does in the whole year?

You probably don't. I don't either.

Then why are people planning New Year's Eve parties at five star hotel, clubs and resorts and can't wait to put on their dancing shoes and get out? It's because ending the year with a big night marks properly the passage of time, and we feel that when we wake up tomorrow we will have ended a period of our life, and look forward to something better.

But, this won't happen on its own, right?

We will have to plan where we want to be and move in that direction. But planning starts with ascertaining where you are right now. Let me explain this with an analogy.

Just when you are stepping out of your home before a long journey... What do you do?

Lock the door carefully and reconfirm it twice or thrice or just rush out hastily without any proper planning? I am sure most of you do the former.

It is this aspect that I want you to focus on. It is important to move on in life, celebrate and look forward to a new year. (A new year full of possibilities and opportunities, adventures and enthusiasm, knowledge and wisdom, health and wealth.)

But will all this happen on its own? For some of us it might. But for most of us nothing will change if we don't sit back and learn lessons from our past. Expecting all these without any efforts is only wishful thinking and not proper planning.

For me this year has been a great teacher. I will share an invaluable lesson I learned in life in 2014.

A close friend lost his mother in February. In a fortnight, a normal fever advanced to pneumonia, affected her lungs and eventually led to her death.

My friend was devastated. His dreams, wishes and promises that he had made to his mother, some of it he fulfilled and many of them yet to be fulfilled will never be witnessed by her. This incident taught me an invaluable lesson.

Often we ignore the people who are most important to us simply because they have always been there with us. We take them for granted and focus on things which are not really important. But we realize this only when that person isn't there anymore in our lives.

After meeting him I had one question ringing in my mind, what if tomorrow I have to go through the same grief that he is going through today. The emotional 'me' rejected it outright but deep down under the practical 'me' knew that one day everyone has to face it. We cannot change the law of nature. But, we can change our own nature and condition our relationships, can't we?

I immediately decided that I will change. That I will do what it takes to spend time and value the people I love.

I ended up taking that vacation I was postponing for so long to spend some quality time with my family. And something wonderful happened.

On this trip I discovered my keen interest in photography. This love for photography was always there in me but I never nourished this hobby as I should have done it. I wasn't carrying any digital camera but began clicking pictures with my cell phone camera and they turned out quite good. Here's one of the pictures.

Capture the moments before they are lost...

So in the first stage of New Year preparation you assess the past year. By doing this I was able to see what I had learned, and what I did about it. I spend time with my family, discovered a new passion, and learned my priorities. In the second stage of planning you decide where you want to be, and in the third stage you direct all your energies to achieving that goal.

During this process we make a lot of mistakes and learn from them, but that's not enough any intelligent person can do that but only a genius will learn from others mistakes.

After all how many can we afford? Especially in financial markets where capital is limited.

And for you to do that it is very important to keep a right frame of mind throughout the year. We have to shift from being cluttered to being clear, from being ignorant to being aware, from procrastinating to being proactive.

Basically, it all boils down to channelizing your energies in the right direction.

Now let us move back to our journey in technicals and start from where we stopped last time. In my last article I spoke to you about trendlines. A trend line is a straight line that connects two or more price points and then extends into the future from which the price may bounce back.

Trendlines are important tool in a technician's toolbox and once you have learned the art of drawing valid trendlines you can move on to 'Trend Channels'.

A trend channel is nothing but price action contained between two parallel trendlines.

Uptrend lines are series of ascending bottoms in a rising market joined together by a straight line. When you draw a line parallel to this uptrend line by connecting successive peaks you get a rising channel.

Downtrend lines are drawn by connecting tops of a descending series of rally peaks together by a straight line. When you draw a line parallel to this line by connecting successive bottoms you get a falling channel.

Rising and Falling Channel
Source: Profit Hunter

Now that you know drawing a trendline requires two points and validating it requires prices to touch and bounce back from the third point on that trendline. This line then becomes our Main Trendline. When you draw another line parallel to the main trendline off successive peaks (uptrend) and successive bottoms (downtrend) you get a rising channel and falling channel respectively.

The chart illustrated above shows the same concept. As long as price advances and trades within the green channel, the trend is considered bullish and till it remains in the red channel it is considered bearish.

In my next article I will show you how I used channeling techniques to pick up this Diwali's top recommendations. And one of them even delivered 50% returns after my recommendation.

I know you are getting late for tonight's party. So I will end here but before I sign off, let me just step aside from the bandwagon & instead of welcoming the New Year I will thank 2014 for all the lessons it has taught me. I am sure all of us will welcome tomorrows rising sun of 2015 but allow me to leave you with this picture of sun set that I clicked over the streets of Ballard Estate in Mumbai & thank 2014 for all that it has given me.

See you all in the next year.

Good Bye 2014

What lessons did you learn in 2014? Will you share it with me & rest of us so we can also learn from it? Share your story in the Club or share your comments here.

Get Asad Dossani's Best Short Term Investment
Opportunities Delivered Straight To Your Inbox!

Sign Up For Profit Hunter Today... It's Free!
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use
We request your view! Post a comment on "'Channelize' your Energy". Click here!
1 Responses to "'Channelize' your Energy"
31 Dec, 2014
Good insight Apurva, thanks for sharing your experience. Have a great evening with your loved ones. I shall continue to watch your space with more eagerness and passion! Kind regards, GRLike (1)
We request your view! Post a comment on "'Channelize' your Energy". Click here!