SAMOSA AND TRADING STRATEGY

The competition in every sphere of life and the technological advancement has made us accustomed to make intricate things and process. Anything that comes in simple shape and size is not accepted and often termed as cheap or unworthy to own. We just hate simple things. And when it comes to trading  simple process is beyond consideration. Round the clock business channels, enchanting analysis, new papers, magazines, websites and lot of stuff out there. Its not the simple world honey. No longer instead.

Trading has surpassed the principle of demand and supply, buy and sell. Therez lot more buried that we have to explore before actually putting our trades.

ABSOLUTELY WRONG.

Trading is really simple if you have drafted a trading strategy for yourself. Scalping, day trading, momentum trading, swing trading, pair trading. Which one is the best? The answer is all, but you cant adopt all at one time and switching from one to other may confuse you as well. So how we can select the trading strategy? The question remains intact. 

I got the answer from an old chap a who started trading 3 years back. After losing all of his capital he reentered market with 10% of his initial capital. When I put forth this question he replied with other question " sir what would you like to have samosa with? Green chatni or ketchup, I go with the first" , as if he was trying to brush off my query. He might be reluctant to reveal his adventurous losses :)  Acknowledging his age, I preferred to reply to his question to ask mine again. " Well, I usually take it with curd" was my reply, " reason being green chatni cause burning sensation and ketchup is too sweet, on the contrary curd is tasty and not harming to my gastric system."

Thats it ! Every body has different liking and not every strategy suits them. You have to find a trade off between what you like and what your risk appetite allows?

TAKE IT SIMPLE SILLY

Trading Mistakes

The most common behavior of newbie in speculative trading can be easily found in casinos. The profit on the first trade ramp up their appetite and they hunt for more. Now the greed comes into play and that’s the turning point. Idly, your trading decisions are devoid of any emotions and totally insulated from the results of previous trades but they eye for more and in a bid to take bite more than their hunger the trading streaks ends with the loss. Following events reflects the aggravated intensity of emotions. Once plunged into marginal or significant loss they attempt to recuperate the accumulated losses in one shot. This leads them to use higher leverage on irrational trade. They are fallen into the trap. The early profit entices them to put bigger money on stake just to lose much bigger amount at the end. The gist of the matter is never use any emotion while make a trading decision. Be it greed, fear, pain or pleasure.