A gambler goes into a casino and put bets on various speculative games to win multiple times of money which is being put at stake. There is no plan behind such gambling and it is just a sheer test of one’s luck in winning money. The odds may favour one day and the other day might go against.
Similarly if a trader starts trading in the money market without any basic planning then he/she could be easily equated to a gambler. Trader for being called a successful trader has to compulsorily shed the gambling instincts. Luck can favour trader and bring good money at times but this is not bound to happen always.
Trading in Stock markets need lot of hard work in making a successful trading plan and strategy. Considerable amount of time is needed in researching and concluding a trading plan for oneself. One style of trading is not necessarily appropriate for everyone and so an individualistic approach is needed to chalk out a strategy which best suits a person.
Lot of factors like available trading capital [disposable extra money], emotional stability, risk taking capability, understanding of one’s own needs and expectations, understanding of money management techniques, psychological aspects etc. go into developing a trading plan.
Trading should be treated as a business and not like gambling so just like any other business trading should also be based on sound financial planning and money management techniques. It has rightly been said that Plan your trades first and trade according to your plans.
Quote:
Evel Knievel “ Risk is good. Not properly managing your risk is a dangerous leap”
Similarly if a trader starts trading in the money market without any basic planning then he/she could be easily equated to a gambler. Trader for being called a successful trader has to compulsorily shed the gambling instincts. Luck can favour trader and bring good money at times but this is not bound to happen always.
Trading in Stock markets need lot of hard work in making a successful trading plan and strategy. Considerable amount of time is needed in researching and concluding a trading plan for oneself. One style of trading is not necessarily appropriate for everyone and so an individualistic approach is needed to chalk out a strategy which best suits a person.
Lot of factors like available trading capital [disposable extra money], emotional stability, risk taking capability, understanding of one’s own needs and expectations, understanding of money management techniques, psychological aspects etc. go into developing a trading plan.
Trading should be treated as a business and not like gambling so just like any other business trading should also be based on sound financial planning and money management techniques. It has rightly been said that Plan your trades first and trade according to your plans.
Quote:
Evel Knievel “ Risk is good. Not properly managing your risk is a dangerous leap”
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