Weekend Special (3-4 Nov 12)

Playing Card Games V/S Stock Market

Stragne! Yes I found some similarities between two.

Situation 1 - 
Normally we play card for our entertainment, or for fun, or for times pass i.e. we enjoy paying cards in our free time and just for FUN. Games we play like Satti Senter, Dehla Pakad, etc

In stock market such people can do paper trading or trading as game skill at various sites (NSEIndia or MoneyBhai)

This kind of people can trade in cash market with small volume and they can prepare their portfolio in various sector i.e. not in single sector.

Situation 2 -
We play a 9 or 13 card Kitty with cash. In such situation we set price of deal with our cash capacity i.e. the loss we can bear but still it remain manageable.


This kind of people can trade in cash market with medium to high volume and they can prepare their portfolio in various sector i.e. not in single sector.

And sometimes they can try Option trading of low risk, like ICICI or Infy Option call of value of approx 3K which is manageable loss in case if trade goes wrong.

Situation 3 -
3 card game (flush) - People who like high money flow play such game, they earn little to high and even can loss whole money of valet in a single day.

Such kind  of people trade in stock market in Future & Options only. They seek for high money inflow but most of time they lost valet money due to lake of patience and lake of knowledge.

Because first of all they start FNO like a gambling and thinks they will be Bill Gates in a single series and after first mistake they do one after another by chasing their losses.

MORAL

Even winning in 3 card game is an art, some people win it continuously without good cards because they play it carefully with opponents movement or having look to you. Many times you lose instead of having good cards, or make small profit instead of having good cards while they people make good amount.

Same way - Trading in stock market is an Art. There're many operators who play with your sentiment and hit your SLs for both longs & shorts because they know it very well once trade will go in reverse direction impatience people will be out of position.

So traders (not investors) need to learn it from day to day happenings.

First of all you should have control over your GREED & IMPATIENCE. Always look for bigger picture. Always use SL which is a life savior tool in 70-80% cases.

And if you are a trader never forget to book profit at comfortable level or at suggested levels.

Never put your money more than 5-15% in FNO or first decide you LOSS Bearing level and then take risk only for that only.

MY PERSONAL VIEW -

I always suggest Cash Trading which always remain safe, never put your money into unknown small caps, people think by buying 5 or 10 Rs scrip will be one day 1K, it happens but those are very few companies, so before making investment always see company background and for finished products, after that look for that sector development else you will make loss only.

Also remember small scrip movement remain very slow and take more time.

or Swing Trading in FNO if you want to trade in FNO. Look for broader picture and only then enter FNO else most of time it would be fruitful for you.

To learn FNO trade - always try with low risk calls.

Good Luck