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Looking to Trade…Look for a Mentor

In this day & age of instant gratification, patience is almost non-existent. There are very few people who have patience and very few people who make money in the market. Mostly these people are the same i.e. one who is patient makes money and the one who is not, continues his or her generosity in the market.

Nowadays in order to trade or invest all you need is money in the bank and a Demat & Trading account. Having a trading account is your license to trade whether you have the knowledge or experience is least of anyone’s concern.

One starts to trade and then experience loss, trade more which results in even bigger losses eventually losses take a heavy toll on the trading account and trading comes to an end within few months.

There are few however who begin to think about what has happened and start learning. They watch videos, attend seminars, maintain daily data, do daily analysis things improve but still trading account remains negative and it keeps leaking money sometimes less sometimes more. So, what does one needs to do in order to start making the consistent return in the stock market? Well, the answer is you need a mentor. Someone who has seen decades of market ups & downs. No matter how many seminars you attend or how many YouTube videos you see, consistency can only come if you have a mentor who can correct your mistakes even before you commit them. Problem with doing things on our own is that in the stock market there is a cost to pay for mistakes committed. A mistake at the wrong time may cost you the full trading capital. This is where a mentor can guide you in becoming a professional. Take sports, for example, a player needs a coach to get better. Coach is needed right from the childhood i.e. when one starts playing a sport and even at the time when they are playing professionally. A surgeon after finishing studies practices under a senior surgeon to become professional. A pilot after finishing studies does not just start flying plane, he has to have a specific number of flying experience as a co-pilot under a trained, professional pilot. Mentoring is required in every field.

Why do we take a different approach when it comes to trading that too on our own money? In order to succeed in any field, you need a mentor. It’s even truer in the stock market. What a mentor can tell in one single line may save you from the pain most traders go through. It not just elevates your chances of surviving in the market but also earning from it. It’s easy to assume how to trade successfully can be learned in few days or month. Trading is an art and like any other art takes few years to master. Patience & not blowing your trading account are the key here. One must be patient to learn this craft. For regular coaching and hand-holding and nurturing that an investor and a trader needs. Attend this Free Webinar. Register for the Free Webinar by clicking on the link below

www.Modit.live/Freedom

In this day & age of instant gratification, patience is almost non-existent. There are very few
people who have patience and very few people who make money in the market. Mostly these
people are the same i.e. one who is patient makes money and the one who is not, continues his
or her generosity in the market.
Nowadays in order to trade or invest all you need is money in the bank and a Demat & Trading
account. Having a trading account is your license to trade whether you have the knowledge or
experience is least of anyone’s concern.
One starts to trade and then experience loss, trade more which results in even bigger losses
eventually losses take a heavy toll on the trading account and trading comes to an end within
few months.
There are few however who begin to think about what has happened and start learning. They
watch videos, attend seminars, maintain daily data, do daily analysis things improve but still
trading account remains negative and it keeps leaking money sometimes less sometimes more.
So, what does one needs to do in order to start making the consistent return in the stock
market? Well, the answer is you need a mentor. Someone who has seen decades of market ups
& downs. No matter how many seminars you attend or how many YouTube videos you see,
consistency can only come if you have a mentor who can correct your mistakes even before you
commit them. Problem with doing things on our own is that in the stock market there is a cost
to pay for mistakes committed. A mistake at the wrong time may cost you the full trading
capital. This is where a mentor can guide you in becoming a professional.
Take sports, for example, a player needs a coach to get better. Coach is needed right from the
childhood i.e. when one starts playing a sport and even at the time when they are playing
professionally. A surgeon after finishing studies practices under a senior surgeon to become
professional. A pilot after finishing studies does not just start flying plane, he has to have a
specific number of flying experience as a co-pilot under a trained, professional pilot. Mentoring
is required in every field.

Why do we take a different approach when it comes to trading that too on our own money?
In order to succeed in any field, you need a mentor. It’s even truer in the stock market. What a
mentor can tell in one single line may save you from the pain most traders go through. It not
just elevates your chances of surviving in the market but also earning from it.
It’s easy to assume how to trade successfully can be learned in few days or month. Trading is an
art and like any other art takes few years to master. Patience & not blowing your trading
account are the key here. One must be patient to learn this craft.
For regular coaching and hand-holding and nurturing that an investor and a trader needs.
Attend this Free Webinar.
Register for the Free Webinar by clicking on the link below
www.Modit.live/Freedom

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Technical Analysis Alone Is Not Enough To Trade Successfully

New traders after experiencing loss either leave the market or decide to learn. Ideally one should learn and then get into the stock market, unfortunately, people often learn it the hard way. They lose first and if they haven’t lost all of their money they think of doing it the right way.

Now when they start learning the first thing that comes to their mind is to learn Technical Analysis. And when they do decide to go for a course in Technical Analysis, they come across such wonderful concepts like Support & Resistance, trend line, Fibonacci etc. that it feels that life is now sorted. However, when one applies these theories in the market, it falls flat on the face and losses continues. This leaves one all confused & belief that one can actually earn in the market begins to wane.  They learn more about Technical analysis but the result is the same, disappointment & more disappointment.

Why is that? Why Technical analysis does not work? Well, it does but know alone. If your trades are based on only technical analysis then your success rate will be not more than 40% and with that kind of success rate you just cannot earn in the market.

So, now what to do?

The answer is Derivative Analysis. The derivative analysis is the study of Option & Future data. Derivative Analysis together with Technical Analysis can improve your success rate to as high as 80%. You’ll be able to spot trend better also trend change will be much easier to decipher. Now, why is that?

The reason for the low success rate of technical analysis is that when you are doing the Technical analysis you are only looking at charts which is the pictorial presentation of the Future price. Here you are completely ignoring the Option data which is significant data. You just can’t ignore anything when you are analyzing the market and to ignore such a vital option data is a cardinal sin.

Option data analysis shows in which direction the position is being made whether short or long. Now, whenever a position is made there is a buyer or seller so how do you decide who is more powerful, buyer or the seller. Option analysis will help in deciding this.

It is the combination of Technical Analysis & Derivative Analysis that makes analysis complete and more precise. Option Trading can be extremely enjoyable and profitable if we combine the two analysis. You just cannot ignore any of the two, Technical or Derivative analysis. The difference between an average trader and a successful one is that a successful trader has a holistic view of the market……not just technical analysis but derivative analysis too

Keep learning & happy trading.

New traders after experiencing loss either leave the
market or decide to learn. Ideally one should learn and
then get into the stock market, unfortunately, people
often learn it the hard way. They lose first and if they
haven’t lost all of their money they think of doing it the
right way.
Now when they start learning the first thing that comes
to their mind is to learn Technical Analysis. And
when they do decide to go for a course in Technical
Analysis, they come across such wonderful concepts
like Support & Resistance, trend line, Fibonacci etc. that
it feels that life is now sorted. However, when one
applies these theories in the market, it falls flat on the
face and losses continues. This leaves one all confused
& belief that one can actually earn in the market begins
to wane.  They learn more about Technical
analysis but the result is the same, disappointment &
more disappointment.
 

Why is that? Why Technical analysis does not work?
Well, it does but know alone. If your trades are based
on only technical analysis then your success rate will be
not more than 40% and with that kind of success rate
you just cannot earn in the market. 
 
So, now what to do? 
 
The answer is Derivative Analysis. The derivative
analysis is the study of Option & Future data. Derivative
Analysis together with Technical Analysis can
improve your success rate to as high as 80%. You’ll be
able to spot trend better also trend change will be
much easier to decipher. Now, why is that?
 
The reason for the low success rate of technical
analysis is that when you are doing the Technical
analysis you are only looking at charts which is the
pictorial presentation of the Future price. Here you are
completely ignoring the Option data which is significant
data. You just can’t ignore anything when you are
analyzing the market and to ignore such a vital option
data is a cardinal sin. 
 
Option data analysis shows in which direction the
position is being made whether short or long. Now,

whenever a position is made there is a buyer or seller
so how do you decide who is more powerful, buyer or
the seller. Option analysis will help in deciding this.
 
It is the combination of Technical Analysis & Derivative
Analysis that makes analysis complete and more
precise. 
Option Trading can be extremely enjoyable and
profitable if we combine the two analysis. You just
cannot ignore any of the two, Technical or Derivative
analysis.
The difference between an average trader and a
successful one is that a successful trader has a
holistic view of the market……not just technical analysis
but derivative analysis too
 
Keep learning & happy trading.

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Why Protecting Capital should be Number 1 Priority

Trading can be a very rewarding profession which can unlock the door to great riches. Returns in stock market both through trading and investing can be astronomical. It’s these high return that draws many people to stock market. But of course, the stock market is the place where you’ll find both rags to riches stories and riches to rag stories.

There are many great things about the market, one of them is that there is no bad debt in the market. What you have earned you’ll definitely receive, the exchange will take care of that. So, in that sense its the best business. There is no other business in the world where bad debt won’t be there. However, in the stock market, you don’t need to have provision for bad debt. It’s simply not required.

Also, this is a place no matter how much time you have spent in the market, nobody will let you trade if you have no money. There is no Goodwill here. Unless you have money in the bank you won’t be allowed to trade. So, this underlines the fact that capital preservation should be our number one priority. if you lose all your capital then its the end of the road for you as a trader and investor.

As you keep losing the capital staying in the game becomes more difficult with each passing day. Picture this if you lose 10% of your capital in order to recoup the losses you now need 11% return on your remaining capital. If you lose 20% then you need 25% return on your remaining capital, If lose 30% then 43% return is needed and if you lose 50% then 100% return is required just to recover your capital. So, with every loss, your dream of making it big in the stock market gets further and further away. And a day comes when you have to give up on your dream. You must look preserving the capital first then look to earn the return on it. If you learn to preserve your capital then return will eventually come. The trick is not to lose too much capital.

Analyze risk more than you analyzing profit will go a long way in helping you keep your capital from slowing slipping away. You never know how far you are from that one big losing trade. Morphing your position when the trade goes bad can help you preserve your capital. There are means and ways to do that. So when you are wrong about the market trend you learn how not to lose the capital and when you are right you earn. In all our training programs and even in our own trading, our focus is more on losing capital than earning a return on capital. Once you master this there is no stopping you from achieving your dreams.

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How to Avoid Financial Disaster in Investing

If there is one word that can save you from financial ruins then that word is ‘NO’.

Financial product salesman who pitch financial products to save for child’s education or your retirement, buy family’s health insurance or have a credit card that allows you to purchase at will and offers reward points when you splurge?

Market the financial product well and the gullible retail customers will fall for it and would continue to buy it. After all, who does not want to save for retirement or Child’s education etc.? If you have teeth, you do need toothpaste, right? So, if you have a child, you certainly need a child plan. If you have a family, you must have medical insurance. You also need a retirement plan. The result: you end up buying costly child ULPI’s, confusing medical policies, and inflexible pension plans.

Salesman pushes you to diversify across stocks, gold, property, bonds, bank fixed deposits, post office savings, PPF and a host of other instruments.

Trust me, all this is a sure shot recipe for financial worries.

This is not to say these products do not offer value, some of them do. Trouble is that most of these products involve complex investment strategies. These strategies are difficult to understand and a retail investor does not even try to understand what the mechanism behind all of it is.

However, one word can safeguard your finances against such perils, protect your money and make you rich. It is simply, ‘no’. Nahi. Naa. Nako. Vendam. This two-letter locution will act as a shield against financial planners, wealth managers, money quacks, banks, insurance companies, mutual funds and portfolio advisers who are trying to sell you something or the other.

‘No’ is a powerful word. Use it ruthlessly. Say ‘no’ to the relative who wants to sell you an endowment insurance policy. Turn down the bank executive who is pushing a pension plan. Refuse the offer of a free add-on card from the credit card company. Don’t agree to buy the child plan that costs a bomb. Just keep your financial life as simple as possible.

At the end of the day, you’ll realize that you can’t let someone else take control of your finances. There is no one better than you to manage your money than you. It may seem daunting at first to do it all by yourself but it not that difficult as it is made out to be. When you trust the advice of your broker, wealth manager, Insurance agent you should always keep in mind that there is a conflict of interest. They earn not by giving advice but by selling these products. They mostly pitch product which offers them the maximum commission. So, the only way to avoid this is to take control yourself.

Keep learning, take out half an hour or so to sharpen your financial knowledge and soon enough you will learn the tricks of the trade to keep you ahead of the game. If you want to take control of your finances and invest in stock market then join register for the free stock market training here.

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Long Term Perspective in Trading?

It’s almost cliché to say that one should invest in the market for long term. The definition of the long term varies from person to person.

For some 10 years or more is long term, for some 4-5 years is long enough, while from the taxation point of view one year is a long- term investment and for a trader maybe even a day is long term.

Long-term perceptive in every aspect of our lives is important. Quality of our lives depends on the decisions we take.

Our decision shapes our lives, so, it becomes extremely important to think well before we take any decision. You must have noticed fast decisions are usually wrong decisions especially about money & relationships. We should give a time gap between thinking & executing.

You will realize that if you give time gap between your thoughts and the actions, then you will stop indulging in impulsive purchases or wrong investment or most importantly you will stop taking wrong trading decisions.

People who are highly successful have a long-term perspective on almost everything. They give a time gap before executing their plans. This enables them to visualize the impact of their decisions on their lives 5, 10 or even 20 years down the line.

For investment in equities, one must have a long-term view. Trading is generally is associated with a very short-term view i.e. from few minutes to few days only. How can one have a long-term view in trading? If we replicate the long-term approach towards trading as well, then we will execute better trades, our accuracy will improve and we’ll stop regretting. It’s very easy for us to get completely mesmerized by the trading screen and execute a trade and then regret it.

However, with a long-term approach, you will stop chasing trades instead you’ll be able to spot great trading opportunities. When we think of trading we assume it’s a place where one can get astronomical returns in no time. However, a smart trader will have a long-term perspective. This smart trader will see how his trading portfolio will be 10-15 years from now.

While others are looking to double their money every year this smart trader will be happy with a small but consistent return month on month which will snowball into something really big in the future.

To understand how small but consistent return helps in your portfolio becoming massive, let’s take an example. If one has 15 lakhs as a trading capital, then an average or mediocre trader will look to earn at least 1 lakh or so on it every month. As a result, he will take more risk and end up losing capital and leaving the market forever.

A professional trader, on the other hand, will have a long-term perceptive, he will be looking for a small yet consistent return, even if he earns 2.5% return a month then this 15 lakhs will become 2.9 Crore in ten years. Time perceptive changes everything. 2.5% on 15 lakhs means Rs 45000 every month, for a mediocre trader this amount is too boring to even talk about however consistency & time perspective is the key here. Knowledge, consistency and your time perceptive can help you multiply your trading portfolio into something which only very few have been able to achieve. We all have heard the story about tortoise & rabbit. Tortoise even though was slow but was consistent in his approach and came out a winner. Trading is similar to that.