In Ramayana Guru Vashistha explains to Lord Rama that in this world, wealth is the most important thing. There is not much difference between a poor and a dead person . A wealthy person seeking after Dharma and prosperity will succeed at all cost but the poor person striving for prosperity will find it difficult to attain.
Sage Vyasa writes in Mahabharata, that through wealth one attains Dharma, Kama and Moksha. Even day to day life in this world is not possible without wealth in hand. Hence, the Artha is important for rest of the three, Dharma, Kama and Moksha. The great economist Chanakya writes in his sutras that the root of human happiness lies in Dharma, and the root of Dharma is wealth and prosperity. The motive of any karma or action is the gain of wealth and prosperity which bestows dharma and Kama. Chanakya has also mentioned in his work that one who has wealth and prosperity has friends and relatives and only then he is considered as a man and he is able to live his life according to his wishes. |
Archives of “January 5, 2019” day
rss6 Points For Traders
1. Consistently profitable trading is not about discovering some magic way to find profitable trades.
2. Consistently successful trading is founded on solid risk management.
3. Successful trading is a process of doing certain things over and over again with discipline and patience.
4. The human element of trading is enormously important and has been ignored by other authors for years. Recognizing and managing the emotions of fear and greed are central to consistently successful speculation.
5. It is possible to be profitable over time even though the majority of trading events will be losers. “Process” will trump the results of any given trade or series of trades.
6. Charting principles are not magic, but simply provide a structure for a trading process.
Why Warren Buffett is Richer than George Soros
If you’re not familiar with Veryan Allen, he writes these insanely awesome rants about how the passive indexing cult is clueless and real alpha is out there for real managers to capture. I love reading his stuff, even when I disagree with some of it.
He’s just tweeted a link to a classic post on his aptly and spartanly titled “Hedge Fund” blog, in which we learn about how Warren Buffett is essentially the lead hedge fund manager in the universe even though he runs, for all intents and purposes, a no-fee actively managed closed-end fund.
I especially liked this part, where he explains why Warren Buffett has become wealthier than George Soros (not that it matters at that level), despite Soros’s better performance… (more…)
"It is a dangerous thing to know a little bit and believe that one knows everything."
Do You Trade The Market or Your Emotions?
As traders try to improve performance, the one piece of knowledge that is often overlooked, is self-knowledge. Most traders would benefit by simply focusing on doing more of what works and less of what doesn’t, which sounds obvious, but the reality is that most do just the opposite. Learning to identify which behaviors work and which don’t is not as fun or interesting as learning a new trading strategy or set-up.; and awareness of one’s internal state is just as critical, but that is typically not dealt with. As a result, most traders focus outward and ignore their inner process. And the way this often plays out for a trader is they trade their emotions and not the market. |
Learning curve of a trader
Desire
This post is about one of the most important, but often overlooked rule, having huge philological impact on trader’s course of actions and decision making process.
Never confuse “Making money for the sake of fulfilling material desires” with “Making money as having profit on a trade”.
We do trade for achieving material independence, when we place the trade we need to think PROFIT, NOT “I need to make Rs 5 lac to buy new car”. Setting material goal as a trade objective is dangerous, it clouds our judgment, messing up initial trade setup and timing and interfere with “close position” decision. What if we are not going to make Rs 5 lac on a trade or “within a month”? Are we going to hold position forever if we only making Rs 2 lac? Are we going to quadruple the size of position to achieve “Rs 5 lac objective” sooner? Remember “counting turkeys” story? Are we going to trade even if market is bad and timing is wrong? I doubt that many of us will answer “yes” to any of these questions.
So here comes the rule:
Trade for profit – you’ll decide how to spend it AFTER you’ll make it.
"Exchange rates appear disconnected from traditional fundamentals because susceptible to risk shocks."
Hardball, yes. Grexit, no.
Ten questions to ask yourself before every trade
Does this trade fit my chosen trading style? Whether it is: swing trading, momentum, break out, trend following, reversion to the mean, or day trading?
- How big of a position do I want to trade? How much capital am I going to risk? Am I limiting my risk to 1% or 2% of my trading capital?
- What is my risk of ruin based on my capital at risk?
- Why am I entering the trade here? What is the trigger to trade?
- How will I exit with a profit? A price target or trailing stop?
- At what price will I know that I was wrong? Where is my stop loss based on the position size?
- Will I be able to admit I was wrong and exit the trade if my stop is hit, or will my ego make me hold and hope?
- Is the risk small enough that I can emotionally handle the loss without blaming the market?
- Can I really risk this money or do I need it for upcoming bills? Trade with risk capital not living expenses.
- Am I committed to staying disciplined and following my trading plan on the trade?
I believe the answers to these questions will determine your success in any trade more than anything else.