When you’re serious about building a solid stock portfolio, falling prey to common mistakes isn’t an option. Every step you take must be well calculated, analyzed and expert-backed to hit all the chords perfectly. However, ours is a real trading world, where few things are completely flawed. For someone beginning on the scene, the biggest problem is trading for the wrong reasons.
Tomorrow I will invest some of my savings in the stock market and by next week it will double. I’ll reinvest the profit and do the same in the following week until it makes me a million.
As flattering and popular as that “goal” is, it blurs with dream and wish. Unrealistic with no definiteness, needless to say, it would fail to transition itself in good outcome.
You did all your calculations, analyzed everything, and then analyzed it some more. You invested in the stock market and put yourself in a position where you’re sure you absolutely cannot lose—or so you thought.
Sadly, we live in an uncertain world, where dreams hardly do come true.
There are only a handful of “success rules” for the stock traders. One, don’t put all your eggs in one basket; second, don’t invest money that you can’t afford to lose. While the first one risk huge financial loss, the later one risk your lifestyle and livelihood. And we’re saying this with no exaggeration!
“Have no fear of perfection—you will never reach it,” said Salvador Dali. The quote is as true as it gets. No wonder people advocate striving for excellence and not perfection.
Sadly, this is something that many new-age stock traders don’t really understand. These are the traders who are in quest of a “perfect” trading strategy. Needless to say, this fields indecisiveness and delays in making decision, often costing the traders a significant portion of their potential return.
“Hustle”- that’s the first thing expert teaches the new traders. It’s one of many glamorous terms and rules on the trading scene. Sadly, while as powerful as that instruction is, only a handful of people really manage to hustle in the stock market. These are the successful traders whose stories we read to keep us inspired. The rest… they struggle with a meager return from their investment. They are the victims of Analysis Paralysis.
From Ralph Waldo Emerson and Albert Einstein to Sunita Williams and Annie Besant—few people know that history’s well known personalities are also religious, avid followers of Bhagvad Gita.
And we’re not really surprised. Packing knowledge and wisdom in heaps, Bhagvad Gita has wide influence across the world, with everyone from bankers to entrepreneurs to engineers and doctors rallying behind the noble scriptures.
The selling spree in the world indices didn’t spare Nifty today. The selling was evident right from the opening bell when Nifty gapped down and not even for a single moment during the showed any strength or mood to revive. Lets have a look at the charts and see what they say about the Index in the upcoming sessions.
Are the investment markers cyclical or random? The debate and discussions have gone on for long, and there are supporters for both – with each camp claiming about having evidence to support their belief. Random walk proponents feel that the markets tread an efficient path in which a statistical edge cannot be provided by any type of analysis. On the other hand, technical and fundamental analysts suppose that the markets have a specific rhythm that can be uncovered by careful analysis, offering a small amount of advantage at least.
Some people may have had you believe that trading is quite simple even for the novices. And there are also few of those who exaggerate the trading market, making active trading looks like some kind of mythical jargon of marvel proportion that’s completely out of non-prodigy crowd’s grasp.
The fact is that trading is easier for people who are smart in making decisions and difficult for those who forgo the basics and don’t learn from their mistakes.