It’s over a year that I have been writing in this blog. I
came across many people with many “FAQ”. I have been always writing articles on
Technical Analysis. But this time I’m willing to share something regarding “common
misunderstanding” that people are having regarding markets.
Stock
market is an illusion, everyone enters will end-up in loss
It doesn’t mean that if you have made loss, then everyone
will make loss. There are 100 reasons for going wrong out in market. Analysis
sometime fail, but you need to have a backup plan. If your stops trigger you
have look for things like what went wrong, which is the next support, dose it
worth bottom fishing the stock? And so on. Let me take a small example assume
that you are out to market to buy a soap/bread/biscuit or any other item such.
What you will do? Hope you go out for a retail shop and buy. Isn’t it? What if
you don’t get? Easy go to another shop. For this we always use a world “don’t
marry your stocks”
The reason is every stock has a cycle, a phase and a trend. Everyone have to understand it
then go for an investment you know you
can’t sail against wind so you
have to go according to the winds of
market. It doesn’t mean we have to buy a stock at a high and wait for the
stock to go high. This is something what most of the “Breakout traders” do. Breakout traders are professional traders
they understand the breakout more than a common man. See every breakout aren’t bullish, some are
fake and the great way to understand it to check volumes during breakouts.
I see TV and made Profit/Loss
I am a student I don’t
want to fall into any controversy. Let me communicate what Larry Berman and
other such traders and analyst say “SWITCH
OFF THAT TV VOLUME AND TRADE” few even go to an extent saying switch off your TV. Recently I had a
chance to sit a wonderful seminar held in Bangalore, speaker as Vishal Malkan .
Do you know what he told? He told “I
never see TV” this isn’t weird I have many people saying this even I do the
same thing. I never say PM/President
rule this world I say Media rule this world with psychological gimmicks, mind
control and NLP.
I am a psychology guy hold a special interest in cognitive
psychology and neuro linguists, I am not matured to speak things but can only
say “ It’s your money, don’t make
someone to take your investment decisions”. If you take their advice don’t
blame them. If you get poor marks in an exam you can’t blame your pen, isn’t
it?
I want to invest so and so, what will
be the return after so many years
Believe me even god
find difficult to answer it. There are few concept involved like range, current
price, policy, economics etc. many media say Sensex will touch 20k/30k etc but
there is some “T&C*”. The best way to do money is to buy
at a low and sell at high. It is very hard to specify time.
How can I become a very good trader?
Everyone wants to be a Rakesh Jhunjhunwala.
I have seen people who are trading for show-offs. When people ask this question
I normally question them asking. What you do for leaving? Many answer mobile
shop, owner of petrol pump, jewellery shop, hardware shop etc . Time, emotions, analysis and capital are
some key pillars of trading. And trading is a different game. Everyone can play
but there are few who are good at it, like Sachin in cricket.
I am not a trader but would like to call myself an analyst.
I don’t spend 24*7 out seeing market. Yet I made around 12% to 51% profit out
of 10 stocks in September. You can be a investor can do handsome money.
Do you know in ancient time there used to be a percentage of
farmers, a percentage of carpenters, a percentage of blacksmith etc etc. every
city was balanced that time son of a carpenter will be a carpenter.
If your family /your business is doing well. Then, why you need trading?
Investment is smartly a good decision compared to trading.
“Hope this article
bring some change, in you”
ALL THE BEST
Reason: A triple top formation, A triangle formation
