New update from SLACK from the last week. For more details of Slack please contact 02230987899.
“To be a disciplined investor you have to be willing to stand by and watch other people make money on things that you passed on” – H. Marks
People do same in stock market. They ask too many people about their holding or opinion, they are just looking for who hold same opinion like them not truth whats good for their portfolio or money.
Great workshop about how to develop art of trading @ Baroda.
In that workshop I learnt following things:
In most of the cases, it is eventually the emotions which eat away the gains.
” Try to have a macro view of your investments.
” Whenever extreme greed grips you, remember- It is not a one side ride forever.
” Invest free money only. Do not borrow to invest in stocks. The very thought of returning the money to the lender, makes investor take un-desirable and irrational decisions.”
The market is unaware and not bothered about the price investor paid to buy a share. Often an investor keeps on holding the shares just because the ruling price is below the buying price. Always look for stocks with better opportunities and if found, add it in your portfolio and make an exit from the least potential stock. The best way to locate such stock is to ask yourself, “Will I buy more shares of this company, if I have the funds?”
” Often it has been observed that an investor sells a stock (despite better upside potential) whose trade will earn profits and retains the one where he is making a loss.Only later to find that ‘we have cut our profits and increased our losses’ (cutting the roses and leaving the thorns in a tree). There are only two options in stock investment, either buy or sell.
‘Hold’ is only an excuse for not selling the stock.
” The stock market as a whole is right on most of the occasions. Never try to stand opposite to the market direction. Remember, contrarian investment does not mean to do just opposite to market actions. – Sailesh Malani.
Why crap companies in bull run are in retail investors portfolio :
SECRET OF MINDSET:::: Amateur retail traders tend to think that the professional trader or Institutional investor have some sort of secret knowledge/system that enables them to make huge profit in trading. However, the difference between a retail traders trying to make consistent profit and a professional traders zeros down to the trading mindset and trading psychology. The difference between success and failure for a trader is wafer thin.
Let us give you an example of what we mean. A relatively new retail trader is given a profitable trading system having a trading strategy with proper stop loss and target and the trading system delivers an average success rate of 60%. The retail trader is exited that he has finally found something that will ensure his success. Over the course of 10 potential trades using the trading system it gives a perfect 60% strike rate. However, the mindset of the retail trader can hamper his individual performance.
The problem is that the retail trader doesn’t achieve these results for the following reasons.
we see this type of error over and over again. It is usually the mindset of the retail trader that limits their level of success. Once they understand the psychological aspects of trading and are able to be disciplined, trading becomes that much easier and consistent profitability is now attained. – Sailesh Malani.
#bookathone : Stoploss :
” Amateurs swing between fantasy and reality, making most decisions in the realm of fantasy. They dream of profits and avoid unpleasant thoughts about possible losses. Since stops force us to focus on losses, most traders resist using them. A friend told me she needed no stops because she was an investor.
“At what price did you buy that stock?” I asked. She had gotten in at 80 and now it was at 85. “Would you still hold it if it fell back to 80?” She said she would. “What about 75?” She said she would probably buy more.
“What about 70?” She winced. “What about 55? Would you still want to own it?” No, no, she vigorously shook her head. “Well, then you need a stop somewhere above 55!”
Investors must reevaluate their stops once every few weeks, but traders have a harder job. We must recalculate our stops every day and move them often.” – Dr. Sagar.
This is all about SLACK APPLICATION. #Niftymillioniaretribe