Trading is trading whether it is selling peanuts by the roadside or trading options on the stock market.
There is only one way to make money. You have to sell at a price higher than the cost price. How you do it will decide whether money is made or not. On this blog, we believe in keeping things simple. We look for 3-4 easy to understand parameters and go for it. The success is there for all to see.
Financial market experts will never let you accept the fact that trading could be simple. If it were so simple, who will pay for their high prices and high sounding jargon.
Look at this piece of wisdom :
Well, it is good English and a truthful fact. But do we really need it to make money.
This was taken from a very good article at Moneycontrol site yesterday. The article is about a successful trader.
Success stories are good to read. Everyone has a different road to success. But it need not be a long detour just for the sake of making the journey harder.
Look at few more samples from the same article:
By reading this, one would come to the belief that Option Trading is real complicated and it needs great knowledge of software and mathematical skills to become a good and profitable option trader.
That is what the experts want you to believe. That is what keeps them in market. And that is what actually stops you from making money in option trading.
I have full respect for a successful trader with any method — simple or complicated— but every trader needs a different method. A trader with a capital of Rs. 2.00-3.00 lakhs can not have the kind of trades described in the article. Where is the money to do all kinds of hedging?
Such trading is done by specialists on behalf of others i.e. trading desks, portfolio management services, HNI funds managers etc. They have the funds and they have to justify their failures to the clients. So they need all those reasons, charts, strategies, indicators and whatever else looks good.
For a small trader all these things do not matter. Even if they do, we just do not have the money for that.
Once again I will repeat my three principles of becoming a good trader:
Have the belief that you will succeed.
Know your trades.
Know yourself as a trader.
Keep life simple. Keep trading simpler. Life is more enjoyable and trading more profitable if we are able to do that.
Enjoy your Sunday.
Be back for market tomorrow morning.