Monday, January 17, 2011

"Earn Easy Money By Trading " - It Is A Myth

Feroz Ahmed Khan "Trading Stocks is simple mathematics 2+2= 4 but our greed makes it 5 and our panic makes it 3"

Elder Alexander says “Are traders born or made? There is no simple answer. Both aptitude and learning are important, but in different proportions for different people. At one extreme are born geniuses who require very little learning. At the other are gamblers and dunces, whom no classes are likely to help. The rest of us are in the middle of the curve, with some aptitude but in need of education.”

Just like people who choose various professions need to undergo training before getting into the practical aspect of the profession in the same way traders also need to be trained. This can be understood in this way that a Doctor will not perform an operation outright before a proper training, or an Engineer will not design before practical training or a lawyer would not straightaway stand for a hearing without comprehending the laws through case studies.

Similarly a trader cannot be successful by jumping straightaway into the market without analysing the risk potential involved in trading and getting considerable hold of the behaviour of the market. A trader has to be aware that lot of time has to be invested in paper trading before full fledged involvement in live trading.
A better training also involves on part of trader to overcome emotions of fear and greed. Both fear and greed emotions are detrimental to successful trading. Such is the impact of these emotions that many a traders have to either give up trading wholly or have to take a backseat for a long period of time in process of learning to take control over such emotions.

Trading is not an earn easy money kind of short cut, rather it is one of the most challenging practical business. Lot of effort is needed on part of a trader to become a disciplined trader and the money earned through trading can be easily said as hard earned money.

No comments:

Post a Comment

Required US Government Disclaimer & CTFC Rule 4.41

Futures trading contains substantial risk and is not suitable for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle. Only consider risk capital that should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. CTFC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS SUCH AS LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All trades, patterns, charts, systems, etc., discussed in this website or advertisement are for illustrative purposes only and not construed as specific advisory recommendations. All ideas and materials presented herein are for information and educational purposes only. No system or trading methodology has ever been developed that can guarantee profits or prevent losses. The testimonials and examples used herein are exceptional results which do not apply to average people and are not intended to represent or guarantee that anyone will achieve the same or similar results. Trades placed on the reliance of Trend Methods systems are taken at your own risk for your own account. This is not an offer to buy or sell futures interests.