Dear Friends,
I do sincerely hope that everyone has entered the financial markets for investment and trading to make money in the shorter/mid and long term goals for financial freedom and early retirement.
Many of those who entered in to the market tried to learn and apply various techniques, chart knowledge, fundamentals with so sincere.
While few of those blindly do the trading and investment according to their vague mind set and with the calls from other so-called financial analyst.
But we all should agree that by entering the financial markets and make money out of it is purely a risk involved activity.
There is a famous and widely known formula that the 100 year rule.
Based on this rule, you all need to subtract your age from 100. That is going to be the amount of risk that you can take for the investment.
For example if you are 25 years of age, (100-25)= you may take 75% of risk.
If you are 50, you can only take (100-50)= 50% risk in the market.
There is always a risk in the market that your entire capital may be wiped out if you don't have the proper protection mechanisms.
If you are a trader in the market, please note the following things.
Always it is recommended that you should go in line with the market.
Watch for global cues.
Understand the fundamentals & Sector performance.
Do not get carried away with Fear of Missing Out (FOMO).
Above all, you need to have enormous patience to be in the market for greater profits.
Don't practice over trade always.
Set a realistic goal to achieve and once it is achieved, be happy to close the trading platform for the day.
It is always a proven mechanism that whenever the market goes down, be greed to buy more.
When ever market goes up and you are having a comfortable profit, book a little and wait for the opportunity.
Only in the market, where ever it go, whether it is a bullish market, bunny market or bearish market, you can earn.
Trading and Investing is an art if you understand it fully and without having much greed.
So take calculated risks while trading.
Set realistic targets, put stop loss and make a constant watch with risk appetite.
With out stop loss, don't trade.
Also develop patience while trading in the market also.
But the long term wealth creation through the market with the 8th wonder of compounding is purely a magic.
Despite a multi-year bull market in the yester years, it is a hard truth that few investors are not making money.
So adjust with your strategies.
Happy Investing and a Joyful trading experience in your life!