Wednesday, February 24, 2010

3 Secret Trading Lessons...!

Once God was very pleased by a stock trader.

He gave him "darshan" and asked him to ask for 3 "things"

"Any 3!!!"

That trader was very wise and non-greedy!

He said, "God! pl give me those 3 secret lessons which will make me the best trader in the world."

God, as usual, tested his disciple shrewdly.

He said, "Son! I am very happy with you. Ask for something big!"

The trader was shrewd as well.

He didn't want something from the treasure. He wanted the password of the treasure!

God too was adament. He tried a few times to convince the disciple to ask for something else.

But the disciple didn't move.

Finally, the God had to relent!

He gave him the 3 secret lessons which made the trader a great trader, the best in the world!!!
Those 3 secrets were:-

1) There is nothing called free lunch!

2) Knowledge is power!

3) Money speaks!

Many interpretations are possible and all have profound implications in stock trading!

1) There is nothing called free lunch!

= No gain without pain!

= Nothing ventured nothing gained!

= No profit without loss!

= No results without efforts!

= No trade without risk!

2) Knowledge is power!

= More info you have about fundamentals better estimate you can make!

= More Technical Analyses you learn better you can estimate!

= Confidence comes from knowledge & experience

= Patience comes from knowledge & experience

3) Money speaks!

= If you don't have margin, you can't trade futures!

= More principal you have to invest, more you can earn with same % profit!

= The more buffer funds you have , bigger and more risks you can take!

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