Thursday, September 13, 2012

One basic rule

Try to Buy at resistance levels .THIS IS THE SAFEST WAY TO PROFITS. Wait till the stock comes closer to the moving average and only then buy it. Especially if there is a big capital involved.

Suppose the stock is moving in a range like appl now at 260 but at that range, but if it moves to 280 and you are not sure if it is going to go up or down, then you have straddle the options.

If you do not STRADDLE, then it means that you are taking a GREAT risk and many times you lose money. If you did a STRADDLE then you would not lose any money if the market pulled back to the resistance level of 260.

So always know what the resistance level is. Try to buy at that level, with more number of calls. One can even straddle at that level too , but one can bet that on buying calls and also 1/2 number of puts.

But any level above 670 or 680, IF THE MARKET IS RANGE BOUND YOU HAVE TO STRADDLE. straddling is safest method to protect capital.

Monday, September 10, 2012

AAPL droped 2.6 percent from 280 to 262

having a long position with options would have been a disaster today. During uncertain markets it is best to take the profit and not wait for another day for the disaster to strike especially a week end.

Just take the 15 to 20 percent profit with options and keep the profits than when the market hit low, just buy gain or one can do some intra day puts buying.

Trading range. Even a straddle would have been good at this point.

Friday, August 31, 2012

Profit On Any Price Change With Long Straddles

Article talks about COSTS AND BREAK EVEN POINTS which is very important. Also straddles can be profitable because of the nature of option pricing and implied volatility.

Long straddle and Price consolidation

What Is a Long Straddle?A long straddle is one option trading strategy that offers option traders a unique opportunity not available to individuals who only trade underlying securities. Specifically, a long straddle affords a trader the opportunity to make money regardless of whether the underlying security advances or declines in price. The tradeoff is that the long straddle will lose money if the underlying security remains close to the price it was at when the trade was initiated. However, the trader can position the trade to give the stock enough time to make a meaningful move. (For more on long straddles, see Profit On Any Price Change With Long Straddles.)

A long straddle is entered into by simply buying a call option and a put option with the same strike price and the same expiration month. A call option gains value as the underlying security rises in price and a put option gains value as the underlying security declines in price. However, both options have limited risk. Therefore, the goal is to have the underlying security either:
  1. Rise far enough to make a larger profit on the call option than the loss sustained by the put option, or
  2. Decline far enough to make a larger profit on the put option than the loss sustained by the call option.
This is how a long straddle makes money. (To keep reading about straddles, see Straddle Strategy A Simple Approach To Market Neutral.)

One of the two options must advance more in price than the other option declines in price. In addition, the maximum profit potential on a long straddle is unlimited. As long as the stock keeps moving further and further in one direction, the long straddle can continue to accumulate greater and greater profits.

Option prices are comprised of intrinsic value and time premium. Intrinsic value is the amount that an option is in-the-money. The remainder of the price of an in-the-money option and the entire price of an out-of-the-money option is comprised of time premium. Therefore, the risk in buying a long straddle is that the underlying security will not make a meaningful move in either direction and that both the options will lose time premium as a result of time decay. The maximum risk for a long straddle will only be realized if the underlying security closes exactly at the strike price for the options.

Looking for the Next Big MoveIf you look at a price chart of virtually any security, you will find periods of price consolidation followed by price trends in one direction or the other. This trending period is then followed by another consolidation and so forth. If you look at enough charts, you will also notice that some securities are inherently more volatile than others. Because you need some type of meaningful price movement in order to make money on a long straddle, it then makes sense to consider buying a long straddle on a typically volatile security after it experiences a price consolidation.

A consolidation phase can often be quite subjective, but in the end the idea is simply to identify a period of time during which the stock in question has "gone nowhere". In addition, the more "tightly wound" the price action is during the consolidation - or, the longer and more narrow the trading range - the more likely the eventual breakout will involve a meaningful price movement. Some traders use various indicators to measure and identify consolidation, but it is possible to identify significant trading ranges simply by inspecting the price action for a given security on a price chart.

The first step is to identify a stock that has a history of making significant movements in price. Stodgy old blue chip stocks or utility stocks typically are not the best candidates for the long straddle strategy because they simply do not move significantly enough in price to generate a profit. What you really want are the high fliers that routinely make significantly large percentage price movements. In 2009, one such stock is Microstrategy (Nasdaq:MSTR), which appears in Figure 1 below. As you can see from a simple visual inspection of this chart, MSTR has a tendency to wind into a tight trading range and to then break out of that range with a large move.
Figure 1: Microstrategy (MSTR
Source: ProfitSource

Buying a Long Straddle Following ConsolidationOnce a stock establishes a trading range over a 10-day period at least, the thing to watch for is a breakout in either direction. Many traders will attempt to play the breakout in the direction of that initial breakout: they will get bullish if the stock moves to the upside and bearish if it breaks to the downside. However, breakouts often have a high failure rate and whipsaws can leave those initial buyers or short sellers with a quick loss. This is why a long straddle can be quite useful in this situation.

For example, if the stock breaks out to the upside and keeps going, a long straddle will make money. Likewise, if the upside breakout fails and the stock turns and runs to the downside, the long straddle can make money in that case also. In Figure 1, there are three consolidation periods marked for MSTR. Each consolidation was followed by a significant move in price. If you look at the second set of parallel lines, which occurred during the month of May, you can see that the stock broke to the downside on June 2. In Figure 2, you see a long straddle trade that could have been entered using options on MSTR.

In this example, the trade involved buying one October 80 strike price call option for $7.80 and simultaneously buying the October 80 strike price put option for $9.30. Thus, this trade costs $1,710 to enter [($7.80 + $9.30) * 100 Shares per options contract].

Figure 2: Long Straddle using options on MSTR
Source: Optionetics Platinum

The Particulars of the Long StraddleWhen you enter a long straddle, there are always three certainties:
  1. You have unlimited profit potential.
  2. Your risk is limited to the amount you pay to purchase the call and put options.
  3. Your breakeven points are equal to the amount you paid added to and subtracted from the strike price of the options purchased.   
You can see these factors reflected in the risk curves that appear in Figure 3, below. On the left-hand side is the price chart for MSTR. On the right-hand side are the risk curves that depict the expected profit or loss at any given stock price as time goes by. You can see in these risk curves that the higher or lower the stock moves, the greater the profit. You can also see that the maximum loss is $1,710. This will only occur if MSTR is trading exactly at $80 at the time of option expiration. You can also view the effect of time decay, or the process by which an option loses whatever time premium was built into its price as expiration approaches. This is reflected in the fact that the risk curves shift to the left (reflecting either a smaller profit or a larger loss) as time goes by.

Lastly, if it is held until option expiration, then you can see that the breakeven points for this trade will be 62.90 and 97.10. These points are arrived at by adding and subtracting the amount paid to purchase the straddle (17.10 points) to the strike price of 80.

Figure 3: Risk Curves for MSTR Long Straddle
Source: Optionetics Platinum

Managing the TradePrior to entering a long straddle, it is essential to determine what would cause you to exit the trade
with a profit or with a loss. Regarding risk control, some traders will set a percentage of the amount paid as a stop-loss point. Another possibility is to set a time limit. For example, a trader might decide to risk, say, 50% of the premium paid to enter the trade. For the MSTR example, this works out to about $850. As you can see above in Figure 3, if this trade was held until September 1 and the stock was about unchanged, then this trade would show a loss in the $800+ range.

In regards to profit-taking, different traders use a variety of different methods, but one of the simplest and most useful is a simple profit target. For example, a trader might decide to exit the position if a profit of a given amount or percentage is achieved. This comes down to personal preference and also depends on one's expectations for the underlying stock. However, it is not uncommon for a trader to target a 20-50% return. For the MSTR long straddle example, a profit target of 20% would mean that one would look to take a profit once the profit on the trade exceeds $342 ($1,710 * 0.2).

It took close to two months, but on July 28, MSTR finally fell far enough to generate an open profit of $430. The buyer of this long straddle could have exited the trade at this point and garnered a profit of 25% in just two months' time. The risk curves in Figure 4 are updated to reflect the change in the stock and the value of the long straddle position as of July 28.
Figure 4: MSTR stock drops, long straddle becomes profitable
Source: Optionetics Platinum

SummaryTaking advantage of unique situations is one of the benefits that option traders enjoy. One of those unique situations involves taking advantage of the fact that stocks - especially those that are extremely volatile in nature - will "pause" and consolidate from time to time. Eventually, that consolidation period ends. When it does, quite often it will be followed by a strong trend in the price of the stock. The problem is that it can be difficult to accurately forecast whether that new trend will be to the upside or to the downside. This is exactly the situation in which a long straddle can be quite useful. By buying a long straddle, or simultaneously buying both a call and a put option, a trader does not need to accurately forecast the direction of an impending price movement; he or she only needs to feel confident that a sufficiently meaningful price movement is likely to occur.

Rule NO 1. Back yourself up always in every single trade

1. Simple rules

a) For stocks use stop loss or hedge with options, prefer to use stop loss or buy out of money options both are good.

b) for  Options use a straddle at least during the initial big position during consolidation phase of 6 days. Of course invest money when there is a trend. But trends can also be uncertain. Future is always uncertain even in best trends. So back yourself up always.

Implied volatility has a big or singular role in options. Only buy options during consolidation phase of trend when the volatility is low and option price is low.

stop loss does not work in options because by the time you open the computer next day the option is down 50 percent if the underlying is down 10 dollar for example.

So stop loss is stupid in options only way to do it is to hedge it with opposite option at same strike price.

buying weekly options is stupid idea for consolidation phase of stocks uptrend or downtrend

these are the most dangerous for consolidation phase. Within 1 week, the value of the weekly option can go down a lot more than 60 percent.

How do you know that 6 days is for certain the stock is going to move in the desired direction. One does not know. That is the reason why there is no point in buying the weekly options when the stock is consolidating.

Another point is about rolling over the weekly options , which is again a waste of money for buying and selling transactions which can be a lot if one is buying big positions.

What a waste of time and money!!!

Weekly options is a horrible idea. Even buying 1 weekly option is a waste of money. That means selling weekly options becomes a good idea. 

Never take big positions in OPTIONS without hedging or straddle

Straddle with 1-2 month options when the stocks is in consolidation. This is a fine example why options with big positions are so dangerous. Even a small move like 10 dollars can wipe out 50-60 percent of capital money. Why would any one take such a risk???

Straddling would have eliminated the risk. During the consolidation phase stocks move within the 6 day window. Since the probability of the movement is in the trend direction and from this example even a minor change in price would eliminate most of the capital, one has to straddle position always.The market is too uncertain and one cannot guess which side it will take. So weekly options is a stupid idea.

Apple is down again to 658 has broken the 660 range.

Remember, this is a very important lesson. Never go overconfident and try to judge the market. The market can go any direction even with the best indicator may be saying otherwise.

Apple was consolidating on the 675 range. Look at what happened. In two days it is at 658. If you have call options your fingers are burnt.

Do not have big positions in OPTIONS. One way is to hedge your options with opposite options like a put. So that if your guess does not turn right atleast you have hedged your position. 

Do not take any trade without hedging it.

If you have stocks, then a stop loss does it. But in options a stop loss does not mean anything. Already you have 30 percent loss. And if you have big positions you are screwed.

You have to hedge your initial big OPTIONS position with an opposite options. Once the directions is established you can remove the hedge. Initially you need the hedge. Without the hedge it is pure gambling.

Take the same Near the money hedge for the same time period. Then any downside will be made up by the upside. This is only if you are taking a big position in options. If it is a couple of options or a single options there is no need. 

Once the direction is confirmed you can take away the hedge for a loss and continue on the options that are in the directions of the following trend. This way you would not have lost so much and would get into profits. I THINK THIS IS ONE OF THE BEST WAYS TO MAKE MONEY BY OPTIONS.


So....may be next time. Never trade weekly options when taking big positions. 

Thursday, August 30, 2012

Game over

Down jones is down 100 points. What a bad day for me. I lost all my best and I am down 40 percent. So I decided I am out of the markets for now.

Big mistake was to buy too much WEEKLY options. It was just gambling. Anything can happen in the stock market. This is a lesson for me.

I should have got the 1 or 2 month options but still they are risky but not as bad as the WEEKly options.

Weekly option is down to 1.46 when I sold. I bot for 3.71. More than 70 percent loss.

Its all screwed. I will just live with what I have. Bad idea to get into OPTIONS without proper risk management. As the rule goes do not risk more than 1 percent in any trade. It should be applied for OPTIONS specifically. These are too dangerous instruments.

I am learning not to be greedy. Not to take high risks. Anything is possible in stock market. Not to take big positions in options.
Losses in Stocks was really not bad. One has to stick to a trending stock till the trend is over. That is the only way to make money. If you use options use 2 month expiration. Do not use options more than 10 percent of portfolio.

Lesson learned by losing. Hmmm too costly.

Wednesday, August 29, 2012

cost price for weekly options AAPL

20 contracts for average of 3.71, 675 weekly call
5 contracts for average of 9.0, 670 weekly call.

I am going to wait.

I understand what can happen. There is resistance at 270. So the stock  can go down a lot more but the chances of going up are more, talking probability.

Volume was low today around 7 million shares. It is a tight consolidation at 270 range. Anything can happen. But since it is in an uptrend the probability of going up is high rather than down ward.

Lets see. I have to roll over everything tomorrow anyway.

Roll over Weekly AAPL options

One has to just roll over weekly options. I know I am in a loss situation but that does not matter.

The consolidation goes on to a maximum of 6 days, it can be longer but usually 6 days. Now today is the 3 rd day for AAPL.

It is very important to be in a position when AAPL takes off 10 points. The weekly 675 option that is now ranging from 3.5 to 4.5 ie as AAPL moves from 673 to 675 intraday.

My average on this option is 4.01 . That is a good average price for this option. I have to roll over the weekly option at that price or what ever is very close to it so that I do not lose money.

Roll over on Thursdays. If deep in the money then buy closer to in the money options. Do not worry about the fluctuations. I know it is too high but that is the risk I have taken when playing with options.

Like last week options, If I just kept the 660 and 665 options as it is I would have got all my losses back by this time.

The day to sell the weekly options is the day when apple moves 10 dollars. Just wait out, it will happen. If it does not happen just roll it to the next week.

Tuesday, August 28, 2012

The plan for option Apple trading

Since Apple is in uptrend, it is good to buy CALL options. Since the action is not guaranteed to be this week, it is better to buy 1 or 2 month expiration IN THE MONEY OPTIONS. Either September or October.

When to buy?

Since AAPL is showing consolidation at 675 range, I would wait for a down day around 1 percent down. I would average down option price from 675 to 670. The average should be around 672-3.

Then I would wait for it to to higher. Since the resistance is at 670, I would get a max pain loss of 15 percent loss.

If i get lucky and if the stock goes to 665 range that would be a great buy.

So this is the plan for this week of option buying.

I should have done that today. But I did not have a plan. I was doing weekly option super volatile trading. But it is time to go long with 1-2 expiration during consolidation and to average down.

One has to go by Intraday moving average to understand the intraday mood of the market.


I should buy some call options for different months more money in october options. The volume is low today and it has been study. Good sign.

This stock can go to 700 in 2-3 weeks. So buy and hold options.

No problem. Can get a good deal tomorrow. if it keeps steady, just buy it and forget it for 2 weeks.

Options are volatile and one needs to be hold them even with 30 percent loss. Hmmm

thats a lot but the trend is upward.

The DELTA of the stock  options is 0.5 AT THE MONEY. So if apple stock moves from 270 to 280 or 10 points the options is going to move 5 points. That can be a very big change if it is a weekly. For a weekly that could be upto 70 percent change.

For a 2 month expiration it could be like 30 percent range. So for a account of 25 K, it can come down to 17 thousand. Thats a 7 k down. But one has to be ready for it in this case only because Apple is showing uptrend.

Going down 7 K is an extreme situation usually it is around 20K on a down day.

I am just being ready for the reality that can happen. Talking in probabilities. One cannot think that it is going to be only one side. Anything can happen so one has to be prepared for the worst.

On the good side, if apple goes up 10 dollars in 2 weeks, Options go up 30 percent. thats like 32k in the account.

Sunday, August 26, 2012

Typical Intraday price action AAPL

I am reading an important book about the psychology of trading and the mistakes we make due to it. It is clearly evident in my trading loss problem.

First of all one has to learn to think in probabilities and learn to think that anything is possible. When I comes AAPL and option buying, I did not realise the volatility range options can take. The closer the date the more volatile the trade becomes and the risk.

I bought the october options, which are not that volatile like the weekly. When I started last week I bought 2 contracts of weekly first with out looking at the IV, implied volatility.  I guess at a price of 674, the IM must be like 35 or so but the price was 11 dollars. Then immediately after buying the stock started to like and during a huge sell off the price came down to almost 650 then closed at 655. But the market recoverd the next day.

Anyway, now when I bought it, I got into the trade because I thought it was the right price and there will be sustained buying during the bull trend. But there are too many variables and any thing can happen during an intra day trade. And that is the reason one has to be very careful buying the Weekly because unless the price is right one can get into a lot of losses. So how do you know your price is right. During the consolidate phase the price varied from 650 to 670. Now one has to first
find find out the range one is willing to purchase the stock. One should also accept that this is going to happen for sure that the the stock can move in either direction. But the important point in trend analysis is that there is high probability of the stock moving up in 1 week or two weeks but not on a particular day. One should be willing to hold the stock for 2 weeks for the stock to move up. And if one is invested in options one should have the willing ness to hold a atleast 20 percent paper loss because of the volatility of options.

Anyway, I sold everything and got even because my buy points were to high and even the best range price was not meeting my options buying points. So I cut my losses and retained my capital to get into a better trade another day.

Unfortunately there was some good news about apple winning the court case and the stock now moved to 675 after market.

There are plenty of opportunities, nothing to worry. But one has to have strong guts to understand that probabilities work in 1 week or 10 days but not on a day to day basis and that is the need for holding the options or buying options 2 months to expiry. If one is buying a weekly one has to make sure that the buy point is close to the lower range of the consolidation range.  Otherwise it can show 20-30 percent paper loss and one may sell it.

It is hard to buy closer to the lower point but one should try. One should understand that after a big move in the uptrend, the stock may go either direction. One has to hold the options with strong guts unless the stock is coming down. But if the stock is moving in the consolidation range one has to hold the options for at least 1 week. I know it.

Still, I made a mistake because of the wrong buy points. Any way I will try to buy better next time and learn to hold for a week or more. Unless there is a top or some problem with the uptrend. I knew the chart showed uptrend but was not strong enough to hold paper loss and bad buying points.

I am learning from my mistakes. Since no one know for certain in short term range but one can know the trend for sure in 7 to 10 days one needs to have patience and also one needs to buy at good buying points so that the there is not too much paper loss and one can easily hold for 1 week without stress.

Greatest Reward

The Greatest reward, I have even seen is with the weekly stocks. If one can get into Apple weekly stock when the stock is down 1-2 percent when it is consolidating on the uptrend one can get intraday low point and get it at the right time then, one can expect it to move 3-4 times.

I have seen this happen in the intraday trade. This was the most amazing thing I have seen. One has to be a master of INTRADAY chard reading and just follow the 30 day moving average. Just follow the moving average. Only shoot the arrow when one understands the chart and when the charts behaves the way it behaves in the standard model, one can buy the intraday options may be purchase with 5 thousand dollars.

I have seen a 2 dollar intraday weekly option go to 8 dollars. It is highly speculative but if one can master it and follow the charts and do it once in a while this can give great rewards.

Of course, as humans we make mistakes but as humans we can also exceed our mistakes with disciple and study.

Friday, August 24, 2012

Trading weekly strategy

I am keeping 5k reserve so that when the market gives a jerk to AAPL when it comes down 10 points then I am going to dive in and buy some weekly and sell the same day after the stock recovers.

For buying the weekly using the 30 day moving average is a must. If done properly, this can give great profits in a single day or a couple of days.

Also I have seen that during an uptrend some days AAPL can lose 10 points expecially early in the morning. That can be a good time to buy the weekly at cheap price and hold it.

Buy the weekly on the day of selling and look at the moving average. Until the stock is sitting below the moving average do not buy. Once it starts to settle down and starts to emerge out of the average, that is the exact time to buy.

If done properly on the correct days, it is a major weapon. 

One has to be super super careful. If one does not do the right thing than burning your hand can be very painful.

Wednesday, August 22, 2012

Apple 1 month graph. Analysis to buy Call options

When the stock was around 220 to 230, there was consolidation for several days. These are the best days to buy CALL options since they are cheap when the volatility is low.

Unfortunately I did not have option buying ability in my trading account at that time.But this monster is going to move up with a week even from this 650-660 range.

Tuesday, August 21, 2012

lost trading weekly options

lessons to learn

1. After 2 days of rally the AAPL share closed at 665. In the morning it opened at 674. There was tremendous volatility in the options and the weekly option ITM I bought was 665 for 11 dollars. The main problem was I did not put a stop loss immediately. This is a horrible mistake when it comes to options especially.

There was selling and profit booking and the stock came down within 2 hrs to around 660 then came down to a low of 650 and closed at 656.

This was my first option trade after a long time and I was not cautious. Options can burn you if you do not have a stop loss especially when it is so volatile after 2 days of rally.

It is advisable not to buy any weekly after 2 days of rally because it is already highly priced because of high volatility. Then the options expire in 2 more days. Now I have to take loss because the options closed at  4 dollars. I got a loss of  700 per contract. Any way I had only 2 contracts and I put a sell limit on it at 6 dollars on it. hopefully the stock move up tomorrow and I can get some of the losses back.

weeklys are good when the rally starts but can be overpriced after 2 or 3 days of rally. I think it is not worth buying it at that time.

A good idea would be to sell weekly far out of money and make a lot of money. that is the easiest thing to do for extra cash.

There should always be atleast a 25 percent stop loss on options or a 500 dollar limit. To lose more than that is not worth it. These are very important for money management.

I also bought a next month option at the same strike price but it declined only 15 percent. This is because weeklys are very volatile and decay fast with time.

graph for 3 days

Friday, August 3, 2012

Past short Idea

OPEN last year would given me a lot of money. The point is why we miss opportunities like this. Need to be patient at the same time understand the Earning and technical analysis and patience.

Study the past graphs . very important

Have to try our something a little different

I need to use the money more efficiently and wisely. My main problem has been putting large amounts of money in the stocks that move in the wrong direction.

There is a rule that says When in uncertainty cut your position. Especially if the stock is showing strong RS in the case of shorting.

Start with a small position in uncertain position or better do not enter the position.

There are plenty of opportunities in the market. I almost make 20 percent in ARNA but there was not much money invested in it. This is a problem because cash was stuck with other stocks. I need to have cash available when I need it.

This diversification is not a good strategy. It is good to put money where you are making money. Do not buy more unless the stock moves in you direction or you are super confident technically.

I have to put my money where I can get money. I have to choose the best stocks instead of jumping around and losing money.

Thursday, August 2, 2012

Why is ARNA going up on a Down day

Why would a stock going down from 3 days like ARNA and having a bad Relatives strength move up on a down DOW day.

One reason I think is there are people selling other stocks and trying to get into ARNA for a fast return to cover up losses from other stocks or what ever reason.

This stock will go down on a good DOW day since people will again take money out of ARNA and go back to other stocks to trade.

Since most of the people are on the buy side this kind of thing happens with stocks moving down like ARNA. These false peaks are good time to short.

flop show with KCG

There was no need to touch this stock. It just got out of hand and there was not even a stop loss. Wow!!

Bad trade. The market did what it did. Never buy a stock going down. I broke the rule and it burnt. It was a stupid mistake.

I was deceived by the early spike in price to 4.30 cents. That was obviously the shorts covering in the morning. When a stock falls this big like 50 percent don't you think some shorts are going to cover and there is going to be a initial price jump???

What a stupid mistake.

I should have just stayed with ARNA where I made good money.

Wednesday, August 1, 2012

Trading PCYC

I am coming to understand that Highly speculative stocks do come down from their high soon. It takes atleast 3-5 weeks for the stock to go down.

In the case of PCYC which does not have any earnings yet, this stocks has moved from 10 dollars to 60 dollars in a couple of months. I shorted the stock at 50 dollars. The stock was on the 30 day moving average.

1. One mistake I did is to not understand that the stock was consolidating on the 30 day moving average.
This is a tricky situation. How do you know if the stock is going to move up or down.

There is one way to say that which I understood now and it is very important to understand it. The consolidation took 3-4 days on the 30 MA at 50 dollars and in the mean while the DOW was moving up and down. One of those days the DOW when down 188 point. and PCYC was not at all budging. This means the Relative strength is strong and people are holding the stock and the probability of falling is low and the probability of moving higher or dancing in that range is higher.

I did not understand this point and why RS is so important in understand if people are holding or selling or buying.

Monday, July 30, 2012

Divine Mother's words

There is a greater power in silence than in words, however forceful. The greatest transformations have been achieved in the silence of concentration.  11.2.1970

By carefully reading what Sri Aurobindo has written on the subject, develop a clear conception of what human perfection must be.
            By closely observing your own character, become aware of what needs to be transformed in order to achieve the ideal condition. Then set to work sincerely, observing your inner as well as your outer movements. And each time you discover something that contradicts the ideal you have set for yourself, make an effort to correct it.
                 1 December 1971 
Most of the difficulties that people have are due to a lack of control over their actions, and their reactions to the actions of others.
            According to one’s own nature and weaknesses, one must set for oneself a discipline that is invariably to be followed; for example, never to quarrel, never to reply when someone says or does something unpleasant, never to argue when one disagrees. Obviously one should never lose one’s temper when things or people are not the way one would like them to be.
            Naturally, if a person is not used to controlling himself, it takes a good deal of effort to acquire the habit. But this is quite indispensable if one wants to make any progress.
            The path is long. That is why one must have patience and an unfailing sincerity towards oneself.
            In order to be able to live in peace with others, self-control is essential, and it ought to be practised even by those who do not aspire for transformation.
 12 December 1971   
When one gives one’s love to another human being, the first mistake one generally makes is to want to be loved by the other

¹Between India and Pakistan. 
Page — 376

person, not in his own way and according to his character, but in one’s own way and to satisfy one’s desires. This is the number one cause of all human miseries, disappointments and sufferings.
            To love means to give oneself without bargaining - otherwise it is not love. But this is rarely understood and even more rarely practised. And the consequences are painful.
            When some progress needs to be made, you must set to work to make it, without excusing yourself on the grounds that others are not making it.
            Each one is responsible first for himself; and if you aspire to help others, it is by giving an example of what one should be that you can help them most effectively.
            And the Divine Grace is always there, marvellously effective for all those who are sincere.
                 28 December 1971   
All those students who want to learn how to succeed in life and make money are not wanted here. We want only those who want to live a higher life. The children have to decide whether they want to belong to the new life or to be “successful” and live an ordinary life. I think that some of the children will go away.
 30 January 1972 
To take this step towards the new creation, one must learn to silence the mind and rise above into Consciousness.
 2 April 1972
In silence, the consciousness grows. It aspires to know You more and more perfectly.
 3 April 1972
In silence lies the greatest aspiration.
           We pray that the greatest receptivity may also be there.
 4 April 1972
Our human consciousness has windows that open upon the Infinite. But generally men keep these windows carefully closed. We have to open them wide and allow the Infinite to enter us freely in order to transform us.
    Two conditions are necessary to open the windows:
    (1) ardent aspiration;
    (2) progressive abolition of the ego.
    The divine help is assured to those who set to work sincerely.  
8 December 1971 
Feeling alone in the midst of human beings is the sign that you are beginning to feel the need to find in your own being contact with the Divine Presence. So you must concentrate in silence and try to enter deep within to discover the Divine Presence in the depths of your consciousness, beyond all mental activity.  
16 December 1971 
There comes a moment when life becomes intolerable without  

the Divine Presence. Therefore, give yourself entirely to the Divine and you will emerge into the Light. 

In silence lies the greatest receptivity. And in an immobile silence the vastest action is done.
    Let us learn to be silent so that the Lord may make use of us.  
19 December 1971   
O Lord, awaken in me the ardent desire to know You.
    I aspire to consecrate my life to Your service.  
24 December 1971 
Do not live to be happy, live to serve the Divine, and the happiness you enjoy will exceed all expectation.  
28 December 1971 
The first condition is not to have one's own personal interest as a goal.
    The first qualities needed are boldness, courage and perseverance.
    And then to be conscious that one knows nothing compared to what one ought to know, that one can do nothing compared to what one ought to do, that one is nothing compared to what one ought to be.
    One must have an invariable will to acquire what is lacking in one's nature, to know what one does not yet know, to be able to do what one is not yet able to do.
    One must constantly progress in the light and peace that come from the absence of personal desires.
    One could take as a programme:
    “Always better. Forward!”
    And to have only one goal: to know the Divine in order to be able to manifest Him.
    Persevere, and what you cannot do today you will be able to do tomorrow.  
11 January 1972 
Sweet Mother,
    How can one remember at every moment that whatever one does is for You? Particularly when one wants to make a complete offering, how should one proceed, never forgetting that it is for the Divine?

To achieve that, one must have an obstinate will and a great patience. But once one has taken the resolution to do it, the divine help will be there to support and to help. This help is felt inwardly in the heart.
 9 September 1969  


Letters from Sri Aurobindo to Sahana

I have gone through your poems. For poetry three things are necessary. First, there must be emotional sincerity and poetical feeling — this your poems show that you possess. Next, a mastery over language and a faculty of rhythm perfected by a knowledge of the technique and rhythmic expression, there the technique is imperfect, the true faculty is there but in the rough and there is not yet anoriginal and native style. Finally, there must be the power of inspiration, the creative energy, and that makes the whole difference between the poet and the good verse-writer. In your poems this is still very uncertain, in some

passages it almost comes out, but in the rest it is not evident.
I would suggest to you not to turn your energies in this direction at present. Allow your consciousness to grow; if when the consciousness develops, a greater energy of inspiration comes, then you can write and, if it is found that the energy not only comes from the true source but is able to mould for itself the true transcription in rhythm and language, can continue. 

Mother smiled as usual and there was no difference in her. The depression came into you subconsciously be-cause you had the discussion with X. When you discuss like that with people, you may put something in them, but something also comes from them to you. So as X was notin quite a good condition, though nothing like what he used to be in his depressions, you easily got a touch of it and as soon as the subconscious could find a habitual excuse (the imagination of Mother's not smiling) it sent it up to the mind. You should always be on your guard against these automatic interchanges. A little care is sufficient — and no needless discussion.
In the first place the Mother was not pressing you to stop going to X's altogether — only not to stay too long or chat too much. It is to help an inner change to come. The strength of the impulse to go there as well as the feeling of

trouble or despair at not being able to carry out the will not to go — a feeling which you should cast away — may both come from a too great stiffness in the effort of the will itself. A quiet will progressively fulfilling, freeing the physical of the attachment to this kind of vital self-expenditure, is the best way.
As for the feeling of being driven, compelled, that is quite usual when it is the physical nature that is being dealt with; there is no need to be upset or think it can not be got over. The physical is the slave of certain forces which create a habit and drive it through the mechanical force of the habit. As long as the mind gives consent, you do not notice the slavery, but if the mind withdraws its consent, then you feel the servitude, you feel a force pushing you in spite of the mind's will. It is very obstinate and repeats itself till the habit — the inner habit revealing itself in the outward act — is broken. It is like a machine which once set in motion repeats the same movement.' You need not be alarmed or distressed; a quiet persistent aspiration will bring you to the point where the habit breaks and you are free — as with the sex drive and tea. 

X has written that he won't repeat the tea at A's — it was simply to celebrate the peace-making — so perhaps she won't insist much. Remain quiet within yourself and put all the stress on the inner condition — in the end the

outer circumstances will then become more comfortable. 

If one part of you keeps its quietude — the inner being-— then the rest can be dealt with. Not to allow the vital to be upset and the disturbance [to] cover up the inner self, that is the most important thing. Keep up the rejection always.
It is indeed amazing that you should have lent yourself to an extravagant deception such as M has set on foot. It is simply the same spirit of vital falsehood, dramatic and romantic, obscuring the reason and shutting out commonsense and simple truth and vanity which had impelled M. To clear the vital, to get rid of the old Sahana in it, you

must get out of it all compromise with falsehood — no matter how specious the reason it advances — and get the habit of simple straightforward psychic truth engraved init — so that nothing may have a chance to enter. If this lesson can be imprinted in that part of the vital which is capable of such compromises — some good will come out of this wrong movement. Put the mother's notice hence-forth at the door of your vital being "No falsehood hereafter shall ever enter herein" and station a sentry there to see that it is put into execution.
     Your idea about Mother's mysterious smile is your own imagination — Mother says that she smiled with the utmost kindness and took the most helpful attitude to-wards you. I have written to you already that you must not put these imaginations between yourself and the Mother;
for they push the help given away from you. These imaginations and their effect on you are suggested by the same vital forces that are disturbing you so that you may not get free from the disturbance.
     My help and the Mother's help are there — you have only to keep yourself open to it to recover. 

It is indeed amazing that you should have lent yourself to an extravagant deception such as M has set on foot. It is simply the same spirit of vital falsehood, dramatic and romantic, obscuring the reason and shutting out commonsense and simple truth and vanity which had impelled M. To clear the vital, to get rid of the old Sahana in it, you

must get out of it all compromise with falsehood — no matter how specious the reason it advances — and get the habit of simple straightforward psychic truth engraved init — so that nothing may have a chance to enter. If this lesson can be imprinted in that part of the vital which is capable of such compromises — some good will come out of this wrong movement. Put the mother's notice hence-forth at the door of your vital being "No falsehood hereafter shall ever enter herein" and station a sentry there to see that it is put into execution.
     Your idea about Mother's mysterious smile is your own imagination — Mother says that she smiled with the utmost kindness and took the most helpful attitude to-wards you. I have written to you already that you must not put these imaginations between yourself and the Mother;
for they push the help given away from you. These imaginations and their effect on you are suggested by the same vital forces that are disturbing you so that you may not get free from the disturbance.
     My help and the Mother's help are there — you have only to keep yourself open to it to recover. 

     There is no reason to be so much cut down or despair of your progress. Evidently you have had a surging up of the old movements, but that can always happen so long as there is not an entire change of the old nature, both the conscious and the subconscient parts. Something came up that made you get out of poise and stray into a past round of feelings. The one thing to do is to quiet yourself and get back into the true consciousness and poise. There is nothing in what you have written about what happened that has any wrong turn or mistake except the imprudence of intervening and becoming a messenger of the Ys to X; it would have been wiser to have. refused. It was not necessary for you to accept; for Y is no pardanashin woman except, as she told the Mother, when she lives with the father; otherwise, she is accustomed to a freer life, has been in England and can meet men in the society way with a perfect composure and knowledge [of] what to say or do. Besides she has been in friendly correspondence with X and had already met and spoken with him,

so there was no reason why she should not have said what she wanted to say herself or written or sent her Secretary, as she did afterwards. Then there would have been no trouble. This however is an outside thing altogether. There must have been something not noticed by you perhaps, being off your guard, that brought you into amore exterior consciousness and caused this reaction. Always keep within and do things without involving your-self in them; then nothing will happen or, if it does, no serious reaction will come.
     The idea of leaving for any reason is of course absurd and out of the question. Eight years is a very short time for transformation. Most people spend as much as that or more to get conscious of their defects and acquire the serious will to change — and after it takes a long time to get the will turned into full and final accomplishment. Each time one stumbles, one has to get back into the right footing and go on with fresh resolution; by doing that the full change comes. 

     It is indeed the best thing, to rest entirely for a time. You should not cook tomorrow (Friday). The first thing that is needed is to restore the physical strength and elasticity and therefore you should do nothing for a time that will tax it. It will then be easier for the physical consciousness to settle down into quietude and in the quietude for the inner being to recover its hold of the nature. It is the necessity to change the outer physical consciousness so that it may obey the inner and not be subject to the bondage of past nature that has become evident, but [this] can only be done when the inner poiseis back. Rest and an entire quietude are necessary for that purpose. 

     All these suggestions that come to you were of course part of the attack on the physical consciousness, — the attack on the body is used to raise these ideas and the ideas are used to make it more difficult for the body to recover. At a certain stage attacks fall heavily on the body because the opposing forces find it more difficult than before to upset the mind or vital so they fall on the physical in the hope that that will do the trick, the physical being more vulnerable. But the sensibility of the body to attacks is no proof of incapacity, just as the former sensibility of the mind or vital to attacks was no proof —it can be in due time overcome.
     As for the feelings about the Mother and that her love is only given for a return in work or to those who can do sadhana well, that is the usual senseless idea of the vital-physical mind and has no value.
     There is nothing wrong in taking care of the body in regard to health and, if the liver has gone wrong, the instinct to refuse too sweet or greasy or heavy foods is aright instinct. Mother has no objection to your abstaining while the illness is there nor has she insisted on your taking dal. Her objection is only to what people often do, getting ideas about this or that food and abstaining even when there is no acute illness. During an acute state of bad liver, abstinence is often necessary. Only one must not create by wrong ideas a nervous incapacity of the stomach or a chronic nervous dyspepsia as R and others did. She had no other meaning.

     I hope you will be all right soon. If the body does not right itself, you must keep me informed from time to time.
     It looks as if this time it was a purely physical attack based on nothing psychological except the tendency of the material (body) consciousness to respond to the insomnia vibrations. We must try this time to get it out of this last refuge for its recurrence. 

     Mother thinks that it is better to drop the cooking so long as you have no money for carrying it on. She will pay the dues for August, but for the future it will not be possible for her to give anything. If in future you can arrange for money, then you can go on but you shall do it only when you have money in hand, it is better not to take things in anticipation of money to come, for people can always change their mind about giving any farther.
     If you wish to be free from people's expectations and the sense of obligation, it is indeed best not to take from anybody; for the sense of claim will otherwise be there. Not that it will be entirely absent even if you take nothing, but you will not be bound any longer.
     What you write about the singing is perfectly correct. You sing your best only when you forget yourself and let it come out from within without thinking of the need of excellence or the impression it may make. The

should indeed disappear into the past, — it is only so that the inner singer can take her place. 

No date
     Bula's experiences are those which usually attend the withdrawal from the outer consciousness into an inner plane of experience. The feeling of coldness of the body in the first is one of the signs — like the immobility and stiffness of D's experience — that the consciousness is with drawing from the outer or physical sheath and retiring in side. The crystallisation was the form in which he felt the organisation of an inner consciousness which could receive at once firmly and freely from above. The crystals

received at once indicate organised formation and a firm transparence in which the greater vision and experience desending from the higher planes could be clearly reflected.
     As for the other experience, his rejection of the waking consciousness evidently had the result of throwing him into an inner awareness in which he began to have contact with the supra physical planes. What was meant by the sea of red ether and stars depends on the character of the red colour. If it was crimson what he saw was the sea of the physical consciousness and physical life as it is represented to the inner symbolic visions. If it was purple red, then it was the sea of the vital consciousness and the vital life-force. Perhaps if he had not stopped his sense of the Mother's presence, it would have been better, — he should rather, if he can, take it with him into the inner planes; then he would have had no occasion to fear.
     In any case if he wants to go into the inner consciousness and move in the inner planes — which will inevitably happen if he shuts off the waking consciousness in his meditation — he must cast away fear. Probably, he expected to get the silence or the touch of the divine consciousness by following out the suggestion of the Gita? But the silence or the touch of the divine consciousness can be equally, and for some more easily, got in the waking meditation through the Mother's presence and the descent from above. The inward movement, however, is probably unavoidable and he should try to understand and, not shrinking or afraid, go to it with the same confidence and faith in the Mother as he has in the waking meditation. His dreams are of course experiences on the inner (vital) plane. I need not repeat the explanation I have already given to D. 

No date
     I do not at all understand why you should think that the Mother was displeased with you for any reason whatever. She was just as she is always with you. Even if you have made any mistake, the Mother now is disposed to over-look mistakes and leave it to the pressure of the Light and the psychic being of the sadhak to set things right. But why on earth should she be displeased because you wanted to stop the French lessons with N or for any such trivial

reason! Whether you continue or suspend your lessons is a; detail which has to be settled in accordance with the' condition of your mind and the needs of your sadhana and it can be settled either way. It is surprising that you should think Mother could show displeasure over so slight a matter. You must get over a nervousness of this kind and not disturb your good condition by imaginations — for it is an imagination since it had no reality behind it. Have amore perfect confidence and do not let your mind create difficulties where there are none.

No date
     Musical training is better postponed — for the present the inner movement is the one important thing; the rest can be done afterwards.
     As regards your question about effort, — follow your own movement. Your own movement is best for you not\ another's.

Many were the questions put to the Mother and Sri

Page – 134 
Aurobindo and they were of various kinds; they were asked to clearly understand if there were any doubts or difficulties and as long as they were not made clear the mind was not tranquil. Sri Aurobindo too not only answered them but did so in great detail and at length till there remained nothing obscure and he dwelt on each point with great care. As an example I am quoting here a letter of his in answer to mine. I asked: "If I saw some one attacking the Truth and exalting falsehood then what should be the attitude of the sadhaka? Would it be proper to remain indifferent main­taining a yogic equality or take up arms against the falsehood in support of the Truth?" This letter was the outcome of a letter I had read where the Mother and Sri Aurobindo were the target of attack. Needless to say I was very annoyed. A feeling of disgust had spread over my mind and I felt that I should have no truck with such people. The mind, however, felt: should one take such a drastic step? I had asked another sadhak who was very firm to indicate that we should never compromise in this regard. Sri Aurobindo wrote in answer:
    "No doubt hatred and cursing are not the proper attitude. It is true that to look upon all things, and all people with a calm and clear vision, to be uninvolved and impartial in one's judgment is a quite proper yogic attitude. A condition of perfect samatā can be established in which one sees all as equal, friends and enemies included, and is not disturbed by what men do or by what happens. The question is whether this is all that is demanded from us. If so, then the general attitude will be one of a neutral indifference to everything. But the Gita which strongly insists on a perfect and absolute samatā goes on to say, 'Fight, destroy the adversary, con­quer.' If there is no kind of general action wanted, no loyalty to Truth as against Falsehood except for one's perso­nal sadhana, no will for the Truth to conquer, then the samatā of indifference will suffice. But here there is a work to be done, a Truth to be established against which immense forces are arrayed, invisible forces which can use visible things and

Page – 135 
persons and actions for their instruments. If one is among the disciples, the seeker of this Truth, one has to take sides for the Truth, to stand against the forces that attack it and seek to stifle it. Arjuna wanted not to stand for either side, to refuse any action of hostility even to the assailants. Sri Krishna, who insisted so much on samatā, strongly rebuked his attitude and insisted on his fighting the adversary, 'Have samatā,' he said, 'and seeing clearly the Truth, fight.' Therefore to take sides with the Truth and to refuse to con­cede anything to the falsehood that attacks, to be unflinchin­gly loyal and against the hostiles and the attackers, is not inconsistent with equality. It is the personal and egoistic feel­ing that has to be thrown away; hatred and vital ill-will have to be rejected. But loyalty and refusal to compromise with the assailant and the hostile or to dally with their idea and demands and say, 'After all we can compromise with what they ask from us,' or to accept them as companions and our -own people—these things have a great importance. If the attack were a physical menace to the Mother and the work and the Ashram, one would see this at once. But because the attack is of a subtler kind, can a passive attitude be right? It is a. spiritual battle inward and outward — by neutrality and Compromise or even passivity one may allow the enemy forces to pass and crush down the Truth and its children. If you look at this point "you will see that if the inner spiritual equality is right, the active loyalty and firm taking of sides which Y. insists on is as right; and the two cannot be in­compatible.
    "I have of course treated it as a general question apart from all particular cases or personal question. It is a prin­ciple of action that has to be seen in its right light and proportion." (13-9-1936)

  question: How can things go on unless 'rejection' can
be made effective?
    answer: It will be easier when you bring down a settled peace and equanimity into that part of the being. There will then be more of an automatic rejection of such movements and less need of tapasya.
    question: 0 Mother! How to bring down a settled peace and equanimity? If you tell me how, I may try and see.
    answer: The Mother's peace is above you—by aspira­tion and quiet self-giving it descends. When it takes hold of the vital and the body, then equanimity becomes easy and the end automatic. (25.8.33)