Friends,
At this juncture of Stock Market Collapse or say Volatality, I felt to write some of my own thoughts here.
There are 3 most factors that effect a Investor or a Trader in the Markets.
Of them are Greed, Fear and Hope. I will list a breif description of each of the below.
Greed: taking the meaning from Webster's (noun)
1. Excessive desire to acquire or possess more (esp material wealth) than one needs or deserves.
2. Reprehensible acquisitiveness; insatiable desire for wealth (personified as one of the deadly sins).
Greed always says, wait a little more so that the holding will rise and can make more Money.
Fear: taking the meaning from Webster's (verb, felt more appropriate)
1. Be afraid or feel anxious or apprehensive about a possible or probable situation or event (example: If I dont enter this stock now, I will loose on it).
Hope: from Webste'rs (verb, best suited for Markets)
1. Be optimistic; be full of hope; have hopes; "I am still hoping that all will turn out well".
2. Intend with some possibility of fulfilment; "I hope to have finished this work by tomorrow evening".
Well holding a loosing position even if it down to 20-30% ? This is Hope, that make you feel that the stock will go up and you can recover your lossess.
No one can shy away or exempted from these 3 factors when involved in the Marktes. Let it be those FII's, Fund Managers or our new breed of Tech Savvy Brokers, Professional Traders or the Retail Investors.
When this thought comes that, which breed of Traders/Investors get killed or maimed in a Steep Correction? The answer was simple, 90% of the time, the retail investors followed by Professional Traders, Mutual Funds (unless, they have a really Bad Manager like me
) and very minismal are the FII's.
Why so the retail investors get killed, when the same GFH Factor governs one and all? Well, the answer is simple, if you understand the markets very well and for the laymen it goes this way.
The simple difference between Life and Death in the Stock Market is controlling the GHF Factor. The less the GFH Factor, the more the Survival here.
That is the reason, why the FII's, Mutual Fund Manager and Professional Traders survive here more than retail investors. Since they know how to control their GFH Factors.
Variably or Invariably why others can control their GFH factor and why not the retail? at the end all are human beings! The thing is there are checks and balances in terms of methodologies to control the GFH for the Big Guys, there is no one to control a retail as he his a Boss for himself. Thats how the self destruction starts.
The 3'Ms: The 3'M ( Mind, Money & Methodologies) will help you control the GFH Factor. I am lifiting this straight way from Alexander Elder's book (Trading for A Living & Welcome Into My Trading Room).
1. Control the Mind and overcoming the emtions ( GFH Factor).
2. Protect your Money( mazimize profits and cut lossess by Proper Entry and Exit Plans)
3. using Methodologies ( Pyramiding, Reverse-Scale Techniques, Stop Losses)
Also, these days Trading Systems are available for dirt cheap. If you want to make money, be ready to spend money to get your proper setup.
Like
1. For a swing or short-term trader, a EOD Charting Software is more than Enough
2. For a Day-Trader, access to Real-Time data is crucial, even a 5 min delay can kill you.
I may have presented this not in a orderly fashion, but most of them I learnt some myself, some reading books and some from the Traderji forum.
Satya
At this juncture of Stock Market Collapse or say Volatality, I felt to write some of my own thoughts here.
There are 3 most factors that effect a Investor or a Trader in the Markets.
Of them are Greed, Fear and Hope. I will list a breif description of each of the below.
Greed: taking the meaning from Webster's (noun)
1. Excessive desire to acquire or possess more (esp material wealth) than one needs or deserves.
2. Reprehensible acquisitiveness; insatiable desire for wealth (personified as one of the deadly sins).
Greed always says, wait a little more so that the holding will rise and can make more Money.
Fear: taking the meaning from Webster's (verb, felt more appropriate)
1. Be afraid or feel anxious or apprehensive about a possible or probable situation or event (example: If I dont enter this stock now, I will loose on it).
Hope: from Webste'rs (verb, best suited for Markets)
1. Be optimistic; be full of hope; have hopes; "I am still hoping that all will turn out well".
2. Intend with some possibility of fulfilment; "I hope to have finished this work by tomorrow evening".
Well holding a loosing position even if it down to 20-30% ? This is Hope, that make you feel that the stock will go up and you can recover your lossess.
No one can shy away or exempted from these 3 factors when involved in the Marktes. Let it be those FII's, Fund Managers or our new breed of Tech Savvy Brokers, Professional Traders or the Retail Investors.
When this thought comes that, which breed of Traders/Investors get killed or maimed in a Steep Correction? The answer was simple, 90% of the time, the retail investors followed by Professional Traders, Mutual Funds (unless, they have a really Bad Manager like me
) and very minismal are the FII's.Why so the retail investors get killed, when the same GFH Factor governs one and all? Well, the answer is simple, if you understand the markets very well and for the laymen it goes this way.
The simple difference between Life and Death in the Stock Market is controlling the GHF Factor. The less the GFH Factor, the more the Survival here.
That is the reason, why the FII's, Mutual Fund Manager and Professional Traders survive here more than retail investors. Since they know how to control their GFH Factors.
Variably or Invariably why others can control their GFH factor and why not the retail? at the end all are human beings! The thing is there are checks and balances in terms of methodologies to control the GFH for the Big Guys, there is no one to control a retail as he his a Boss for himself. Thats how the self destruction starts.
The 3'Ms: The 3'M ( Mind, Money & Methodologies) will help you control the GFH Factor. I am lifiting this straight way from Alexander Elder's book (Trading for A Living & Welcome Into My Trading Room).
1. Control the Mind and overcoming the emtions ( GFH Factor).
2. Protect your Money( mazimize profits and cut lossess by Proper Entry and Exit Plans)
3. using Methodologies ( Pyramiding, Reverse-Scale Techniques, Stop Losses)
Also, these days Trading Systems are available for dirt cheap. If you want to make money, be ready to spend money to get your proper setup.
Like
1. For a swing or short-term trader, a EOD Charting Software is more than Enough
2. For a Day-Trader, access to Real-Time data is crucial, even a 5 min delay can kill you.
I may have presented this not in a orderly fashion, but most of them I learnt some myself, some reading books and some from the Traderji forum.
Satya
Last edited:
