WHY I BECAME A TRADER
I opened my on line trading account during Sep 2007, although
I have been observing the market for the last 10 years. My initial fund was
Rs 1,00,000. With full confidence in myself , I started accumulating Shares.
and exhausted my fund by first week of January. By end of march 2008,
Nifty fell from a height of 6283, to a low of 4503 . Value of my portfolio
crashed to Rs 50,000. I had no other way except to sell all the shares.
From that time, I continued to analyze the market but never traded.
A question haunted in my mind whether it is possible to avoid losses
even if I am not able to gain appreciably. The finding was clear
1. When the market moves up , almost all the shares moves up
though to different levels .When the market goes down,
without exception , all the shares go down to different
extent.
2.This shows that even if you are good at fundamental analysis,
and holding the best companies, You are bound to lose when there is
downturn.
3. Nobody can predict what will happen tomorrow ,next week
or next year.
4.What you are sure is this moment. So You do some analysis
on the spot, see the trend , and try to go along the trend. You
may not be able to catch the entire move. Definitely, some thing
can be gained after paying brokerage etc.
5. In this way , You protect your Capital, Earn something on most of the
days and lose occasionally.
6.After the Days work, I need not lose my sleep over what may happen tomorrow.
So I became an advocate of Day trading !
I have been observing the market for the last 10 years. My initial fund was
Rs 1,00,000. With full confidence in myself , I started accumulating Shares.
and exhausted my fund by first week of January. By end of march 2008,
Nifty fell from a height of 6283, to a low of 4503 . Value of my portfolio
crashed to Rs 50,000. I had no other way except to sell all the shares.
From that time, I continued to analyze the market but never traded.
A question haunted in my mind whether it is possible to avoid losses
even if I am not able to gain appreciably. The finding was clear
1. When the market moves up , almost all the shares moves up
though to different levels .When the market goes down,
without exception , all the shares go down to different
extent.
2.This shows that even if you are good at fundamental analysis,
and holding the best companies, You are bound to lose when there is
downturn.
3. Nobody can predict what will happen tomorrow ,next week
or next year.
4.What you are sure is this moment. So You do some analysis
on the spot, see the trend , and try to go along the trend. You
may not be able to catch the entire move. Definitely, some thing
can be gained after paying brokerage etc.
5. In this way , You protect your Capital, Earn something on most of the
days and lose occasionally.
6.After the Days work, I need not lose my sleep over what may happen tomorrow.
So I became an advocate of Day trading !
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