Trading Systems - I

Following my previous article Making Money in Stock Markets, many readers have left comments in search of trading system, trading on options, etc.

I dont want to discourage any of you - but it seems to me that readers are not getting the point!

Some questions to ask yourself:


-To develop a financial system, you need knowledge. Do you have that knowledge and TRAINING?

-Do you have TIME to first get the TRAINING and then trade continuously like Nalin and Sujata are doing?

-Can you keep up your TEMPRAMENT to trade throughout your life and take trading as a full time career? Can you make changes to your trading system as the markets changes during your entire life?



Basically, these 3 questions tell one thing - to become successful in stocks and investments, you should have 3 T's - TIME, TRAINING and TEMPRAMENT.

If you are lacking in even one of them, then trading and investments is NOT for you.

Across the world, thousands of people join financial courses (MBA, etc.) with an ambition to learn trading and earn easy money (I am one of them). By the time them finish the course and realize the truth of investment and money making, hardly 1% of them are left with the courage to actually take trading as a career. The reason – after learning finance, they know that they cannot make great profits easily.

Even the 1% who do take trading as a career, how many of them are successful?

Of the successful, how many can carry on their success for their entire life???

The fact is that there is no system that can be designed to yield enormous profits consistently, year after year.

To add to this article, sometimes I hate these so-called successful traders. They are successful, so they end up showing up in such interviews and articles. However, they will never reveal their secrets. Instead – in an attempt to keep their trading secrets, they may tell something that is either half-cooked or incorrect - atleast from the point of view of the audience.
Add to it the ignorance and lack of knowledge of interviewer, and see what is the end result of publication of such an interview or article.

The end result - Audience ends up making a fool of them, though the successful trader may not do so intentionally. We should understand that communication is a 2 step process - What is told by a speaker is not necessarily what is actually understood by the listener. Then, add to it a third party intermediary, like a rediff interviewer – things go from bad to worse.

Continue to Part II