Now that we have sneaked into trader’s emotions, I am sure you must be wondering why I am writing about this. Well as a Trader, you should be completely averse to these emotions. Your emotion is nothing but energy in motion. This is not a positive energy and actually motivates you to do a financial suicide. But being a Trader it is not possible to really avoid emotions. So how do we do it? Let us answer these questions now.Imagine one day you get up, go to a library near your house. You ask for a book on surgery, read it that day. Now tell me will you go and perform a live surgery on the Patient next day??? Certainly not, unless you are Rajnikanth. If this is so obvious, how can a person read a book on Trading and just start the whole process just because he has some money. He is bound to lose his money. Trading is the only profession where you actually have a 50% chance of making money. But that does not take away the need of preparation from the profession.
Now I introduce the hero of the story. System Trading. System Trading is nothing but a set of rules that a trader observes so that he can carry out a successful trade. This system is based on a general set of rules that follow probability of a certain event happening. Over a period of time the system gives profits and cuts losses. The system generally follows trend. Trend is when profits are maximized. The same can happen with losses. But system does not let that happen. The concept of stop loss enables us to cut losses immediately. Thus we can say that our system has Positive Expectancy. Thus the system is guaranteed to give profits because we are not trading based on discretion but based on pure statistics.( Please do not worry if you do not understand terms here. The article is only for giving a general idea of successful trading. Explanation of system trading to come soon)
To put things in a nutshell, system trading can be compared to a Casino. Casino System is rigged in their favor. A participant may win for 1 or 2 games but over a period of time, Casino wins! Here you are the Casino. You may lose some trades but eventually the whole system is rigged in your favor! Perfect roadway to make great wealth.
Trading is a very very easy job! But to make it easy, rigorous preparations are required. Remember, when a runner is participating in Marathon, it looks as if he is running those long distances with ease. But behind that, is the huge amount of hard work and dedication that the runner has put in. Follow rules, maintain discipline and reap the benefits of the most beautiful thing in the world. Money!
Complete and unedited article:
http://tejasnimbargi.blogspot.in/2013/02/beautiful-money.html
– Tejas Nimbargi(Nimbubaba)