Thursday, September 30, 2010

What Market Promises:-

“In trading, the vast market consists of amateurs who are looking for magical answers to make lots of money quickly and with little risk. They want specific ideas. They want to be told exactly what to do. Those looking for such things will not find them. They will not be successful as long as they continue to favor the easy over the truth.” ~~Curtis Faith ~~

Let us see what is the TRUTH…….

Market Promises:-

1. It promises a playing field, not the game.

2. It promises to reward risk, not proportionately.

3. It promises opportunity, it does not promise profits.

4. It promises a lesson, not learning.

5. It promises that the quality of indicators and analysis is proportionate to quantity of participants, not quality.

This is not going to endure me to my readers but I think it is important that we all are reminded what the market promises us.

What You Should Do?

1. Know The Game:- Investing is the most difficult of games: nowhere else does one begin a career by opposing the world’s most accomplished professionals. So, you need to master the rules of investing.



2. Understand The Risk:- RISK is the possibility of loss. That is, if we own some stock, and there is a possibility of a price decline, we are at risk. The stock is not the risk, nor is the loss the risk. The possibility of loss is the risk. As long as we own the stock, we are at risk. The only way to control the risk is to buy or sell stock. In the matter of owning stocks, and aiming for profit, risk is fundamentally unavoidable and the best we can do is to manage the risk

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3. Explore the Opportunity:- Success is the point at which talent and skill meet opportunity. So, explore all the opportunity. Realize that not to invest is also an investment decision.



4. Make Learning A Habit:- Analyze your trades past 3 to 5 years, it will give you base for your learning. Ask yourself, Why did you do particular trade? Was it based on logic, facts or tips? If you continue to do what you have done in past 5 years, where will you be in next 5 years?





5. Follow the indicators:- The market tells the truth, but often there is a lie buried in the human interpretations. Surrender to the truth and not to your opinions.



How To Deal With Greed And Fear?

Once again I take help from Lord Krishna. Do your best and leave rest to the Market. Market is the only authority to give you results for your work. So follow the truth, reward will come automatically.



Happy Investing,

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