Tuesday, February 23, 2010

Your job is a stock!!!

This is for my trader friends who are doing a job while trading.

Sometimes, especially in bull markets, you start profiting from stock trading effortlessly.

Sometimes the profit is exceptionally high.

You start feeling invincible.

You start getting that feeling that you can't lose!

The memories of having lost start fading.

Suddenly thoughts start coming to your mind about going for trading full-time!

You seem to feel that you are wasting your time in job.

You start moving towards that trigger called "Resignation"

That is the most dangerous situation. You are literally floating in a psychologically inflated state.

That is a bubble!

While full-time trading is not bad, you have to be triple sure that the time is right and you are ready for it!

A few questions and hard-look should be enough to prick that bubble:-

1) How many months of salary-cash do you have as a backup besides the principal amount you have?

2) Do you have the experience of making money in the bear-run?

3) What is your experience of trading during recession times?

4) What is your experience of trading during highly volatile times?

5) What is your experience of trading during extended period of illogical price movements?

6) How will you handle situations like adverse circuits?

7) How long can you stay liquid in times of crisis?

8) What was your performance in times of very high stress?

9) Remember the Murphy's Law - 'Whatever can go wrong, will go wrong!"

Remember, if you are drawing Rs.20,000/- pm salary, then your job is like a stock which is giving you Rs.20,000/- returns every month! And that too...assured!

Stock trading is a deceptively simple business!

Stock Market is like a sea where watching a sunset can be one of the most beautiful moments of ones life.

But it is also the same sea where a High Tide or a Psunami can change many a lives in a flash!

Think before you sell that stock called "Job" from your portfolio called "Happy Life".

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