Friday, May 05, 2006

>Core of My Trading.

I asked this question on group
"What is the core of your trading" and got a few replies.

they Mostly refered to the following (which is nice)
Trading Systems,
Mental and Emotional Control,
Looking at Fundamentals,
Good Management,
Growth Story,
Value Story,
Reco from other people,
Improving Quarterly results,
UpMoves with volume,
Promoter shareholding and accumulation,
Quality and Belief in my investments,
Full Faith in selection of stocks,
............ more reasons can come...

I will write in 3 lines my core of trading.
  1. To find situations where the reward is high and the risk is low or nil.
  2. Use Fundamentals, News, Technicals, Perceptions etc to satisfy step 1.
  3. To grow money using compounding.
After Thought
  • Its is very easy to get caught in the intricacy of the trading process and loose sight of the "core focus". This the core focus remains to find high reward and low risk.
  • The second idea is to constantly feed oneself with information which helps in satisfying step 1.
  • The 3rd idea is needed to multiply your money.
  • While this is simple common sense I hope thinking on this lines helps in having a clear mind.

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