When
the market gets into the zone of do nothing mode, I at times think to write and
very rarely I succeed in putting my thoughts into words. Today is one of those
rare days when my will to write has overcome the resistance, perhaps.
Off
late I have been seeing many traders to post their profit and loss statement
screenshots and what not to prove their earnings, which is definitely a very
healthy sign for professional trader’s community. Why I say so is because, this
is how the new traders get attracted to the markets and thus the money from their
trading accounts move to the accounts of the experienced ones. But then what is
wrong in it, after all most of the people come to stock market for sheer
entertainment and adrenaline rush, and one has to pay for her entertainment, isn’t?
As, the saying goes, nothing comes for free.
Long
back when I started my journey as a trader, I was very fortunate enough to be
guided by few wise experienced traders, and one of the lessons I starkly
remember is that, in this field most of the people with experience lack the
capital and one with capital lacks the experience. Perhaps this is one of the
biggest lessons I learnt and I really applied in my own trading career, was to
trade small and preserve capital. Until today I follow this principle
religiously, I just want to be in the game for the long run and it’s just been 11
years for me so far as a full time stock trader. I believe you can only get better if you are doing something for the long haul.
So,
to keep it short, the lesson that a new, as well a seasoned trader can take
away from this article is that, the real principle of capitalism is to protect
capital. Market is all about randomness and if you stick around long enough
randomness will work for you too, and will bestow you will the wealth that you
have been looking for, and I believe it will be more than you have ever
imagined. But for that you need to be patient and wait, stay afloat and pounce
when the right setup is in front of you with no hesitation.
