Trading as a business
- Thread starter toingpoing
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Re: Trading the Potato
You are absolutely right Kodene.Skill ,rather than luck is one of the important factors in trading.In gambling there is no role for logic.One either wins a large amount or loses everything.There is no such thing as partial loss.It is really sad to see that traders do not want to invest time to acquire skill.
If we compare trading with other traditional businesses, actually there is not much difference between them.
If I want to sell a potato (just the one, I'm in the middle of a binary mash-up here), I have to buy said spud (with, like, a currency) at a cheaper price, and then sell my tuber at a reasonable profit. You would hope.
Well, traders do the same thing. They buy hope with the base currency (and just a soupcon of fervent prayers) at a good price. When the price gets better, they sell it or vice versa. That means trading is just like other traditional businesses that we have around.
Except, of course, you can't parboil equity.
So, to earn money by trading one needs to understand the forex market. I need to study and apply learning (so many mistakes, so little time) over and over again to be able to turn the numbers around in my favor.
Gambling does not require a gambler to be well-trained – is this true? I dunno. What about poker, doesn't that require skill?
Anyways, in most cases, gambling is all about prediction - calculation or education does not play a part (did I mention poker? Oh, right...). In fact, the more illogical trend a gambler takes the more options he has of winning (and losing).
A forex trader does not need to do this. He can make money by taking a very logical route (trend trading strategy, say) with all kinds of safety and precautions, like a fire officer inspecting a Durex productions facility (a bit like watching Willem Dafoe copping it in Platoon, but with less Adagio for Strings and more Justin Bieber – whose straining, tight-collared enthusiasm for cutting-edge entertainment – think Mylie Cyrus draped in nothing but a transparent veil of mortification – is more redolent of a last-minute motivational speaker at a forex expo, exhorting us all to smash our quarterly trading targets and stop playing silly buggers with the COT Report).
See, gambling has no time for that nonsense, gambling is deadly serious.
But trading?
A trader needs to learn a lot of things, and he has to apply his experience and lessons to be able to make money, consistently.
It is the skill of trading that brings money for traders. Luck might play a factor to some extent. However, for gamblers luck is the main factor in most cases.
If I want to sell a potato (just the one, I'm in the middle of a binary mash-up here), I have to buy said spud (with, like, a currency) at a cheaper price, and then sell my tuber at a reasonable profit. You would hope.
Well, traders do the same thing. They buy hope with the base currency (and just a soupcon of fervent prayers) at a good price. When the price gets better, they sell it or vice versa. That means trading is just like other traditional businesses that we have around.
Except, of course, you can't parboil equity.
So, to earn money by trading one needs to understand the forex market. I need to study and apply learning (so many mistakes, so little time) over and over again to be able to turn the numbers around in my favor.
Gambling does not require a gambler to be well-trained – is this true? I dunno. What about poker, doesn't that require skill?
Anyways, in most cases, gambling is all about prediction - calculation or education does not play a part (did I mention poker? Oh, right...). In fact, the more illogical trend a gambler takes the more options he has of winning (and losing).
A forex trader does not need to do this. He can make money by taking a very logical route (trend trading strategy, say) with all kinds of safety and precautions, like a fire officer inspecting a Durex productions facility (a bit like watching Willem Dafoe copping it in Platoon, but with less Adagio for Strings and more Justin Bieber – whose straining, tight-collared enthusiasm for cutting-edge entertainment – think Mylie Cyrus draped in nothing but a transparent veil of mortification – is more redolent of a last-minute motivational speaker at a forex expo, exhorting us all to smash our quarterly trading targets and stop playing silly buggers with the COT Report).
See, gambling has no time for that nonsense, gambling is deadly serious.
But trading?
A trader needs to learn a lot of things, and he has to apply his experience and lessons to be able to make money, consistently.
It is the skill of trading that brings money for traders. Luck might play a factor to some extent. However, for gamblers luck is the main factor in most cases.
LondonVisitor,there is no harm in continuing with banking stocks,if you are comfortable but I expect more volatility. In this month's RBI policy review,there is hope of rate cut though not certain,.This expectation itself might boost banking stocks and other rate sensitive high beta stocks.Yes,in the coming months you can expect good returns in Engineering stocks..Good luck..:thumb:
Friend,trading is my full time profession and I look after my own portfolio as well as some of my close clients.If anyone follows the points I have mentioned in this thread,he can make excellent money.But let me repeat again,trading is a serious business and do develop the skill.put in full devotion,time and ofcourse money!!:thumb:
I do agree as regards the time but one should carefully watch policies of various parties. Like,see the way AAP is after subsidy in Delhi. They have stopped FDI in retail in Delhi.Never spoken or given clear plans for economic improvement.It is getting public support because majority are used to freebies.Now,imagine if such inexperienced jokers have an say in government formation,the mood of the stock market.. One thing the market does not like is unstable government because once again the policy decisions will be held up.I am not interested in politics but do track the developments purely in relation to stock market.I personally expect lower circuits on election result day if there is hung verdict. There is going to be blood bath..
I aggree with all points. Trading is not a problem for most of the participants in the market. You will find that it is not your lack of knowledge about trading that keeps you from succeeding in the markets
Trading is a business. business is simply the effective management of cash flow. A
successful business generates more cash than it consumes. This is the goal of
trading as well. There is one trade market that is Bombay Bullion Association ltd which includes new updates and trends in this trading community.
Trading is a business. business is simply the effective management of cash flow. A
successful business generates more cash than it consumes. This is the goal of
trading as well. There is one trade market that is Bombay Bullion Association ltd which includes new updates and trends in this trading community.
I agree with you. Money management and risk management are very important for any business to succeed.Unfortunately out of greed and eagerness to make quick money from shares and commodities trading,people overleverage their capital by taking limits from brokers.This is one of the main reasons for loss...
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