This is part II of the article, Trading Systems - I. Please read the article from part I before continuing with this one
One more thing to note is that both Nalin and Sujata are FULLTIME traders. That is the business for them. They are immersed in it with their heart and soul. Their qualification, experience, and the large amount of capital money that they have (with which they can bet on and are capable of suffering losses) adds to their benefit. Do we have such advantages compared to them?
Nalin mentioned that he quit his well paid job and did research for more than a year in search of finding a trading system. Yet, he almost gave up. Just by luck he spotted an opportunity at the fag end. Do we individuals have the courage to do the same?
With the way Sujata fought against her disease, she had only trading as one of the career options. Do we also have the courage to quit our job and take a year break to learn about the markets and suffer losses in the process and be sure to come out successful at the end of everything?
Another thing that Sujata mentioned in her interview is:
Could you share your success mantras for our readers?
• Read all the advice that you get from various business television channels, newspapers, friends who understand the stock markets but be extremely cautious and disciplined when you act on this advice.
• Never extend your trading bets beyond your means. I speak to my friends; get investment and trading ideas from my brokerages (she is registered for online trading with Reliance Money, Indiabulls [Get Quote] and Kotak Securities).
Nobody can carry on making money just by listening to all the publicly available information – as I’ve explained in terms of Efficient Market Hypothesis in my previous article.
Concentrate on your job or business, or become a full-time trader – nothing works in between. That's what I mentioned in a previous article. Leave your investments to market risk by investing regularly in ETF’s or IF’s. Go for systematic investment plan (SIP). Unless and until you know the fine details about the market and products, don’t jump into it.
Please read the comments and post your views and queries in the comments section which helps in open discussion and avoids duplicity of questions.
You may be interested in reading my previous articles. Here is the link to Table of Contents in a chronological order.
4 comments:
Your words of wisdom reminds me of this serial, it was called "Kehne Mein Kya Harj Hai".
Blogs give every Tom, Dick and Harry a platform to give vent to whatever they want to say.
Although that's democracy, I suppose. If you think it's claptrap, you can always get out, and ensure you don't get back.
Sorry,
I'm unable to understand your comments. Can you please clearly elaborate what you wanna convey?
Hi Shobit,
As you have said, to make money like nalin and sujata, you need to devote time, had training and temprament. But for most of the readers of your blog, are like me, who are having a full time job and dont have courage or money to leave their job.
What I am doing from last few years is, I do invest regularly in good compaines and looking forward to 15 - 20 % annual return which is higher than FDs. Anything beyond that is bonus. I dont have time to do trading on daily and intra day basis. So far, I have been able to get expected returns.
Can you please suggest benifits/loses of this approach.
Thanks,
Bhavik
Hi Bhavik,
You are absolutely correct. None of us have time and money and temparament to trade.
What you are doing is also followed by the rest of the world. Everyone having a job and has access to internet and phone, which enables them to trade now-a-days.
So, overall, a good strategy.
But what's the drawback ??? Whenever you want to search for a drawback, try to identify the assumptions of the strategy.
You are able to get the expected returns - since the overall markets have gone up. Well and good, as long as the markets keep on going up. Will you still be able to carry on making the profits as expected irrespective of the market movements??
Your simple assumption here is that the markets have been doing good, and they will keep doing good.
What will you do if the markets start to go down? US stock market, Japanese stock market - what they have been doing in the recent past???
They are the first 2 largest economies of the world. Still they have seen a lot of recession in the recent past.
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