Wednesday, August 26, 2009


Understanding and taking into consideration the psychology of the almost every human nature that very few people know about real investments as well as very few wants to know about them. As I also concluded in my last article ‘STOCK MARKETS:- NOT TO BE BLAMED FOR THE EROSIONS’ That stock markets are only meant to be for investments. But if we people do trading or speculation in market then the risk involved is entirely our responsibility. Stock market has nothing to do with those profits or losses occurs in trading in the market. Believing in it or not is entirely one’s responsibility.

In stock market if you do not have control on your emotions, greed, temptations, decisioning power, acting-reacting power, thinking power etc then there is only few percent chances to get success in trading because trading in a stock market is a mind game. In trading at any point of time if you loose control on any of these above natures then the result will be very devastating. Perhaps then you will not be able to get out of that trade. But as we all know that controlling the emotions are most difficult thing to achieve except only few. We people (most of us) are bound to drain in our emotions.

I have seen that for the fresher in the market, trading in stock market seems to be very easy. They say its only buy and sell nothing else to do. They say you buy low and sell high & vice versa. It is very easy. I want to ask all of you that Is it really so easy? You must be laughing on them and also feel pity on them but they will not listen to your experience unless they fallen once in market. Trading in stock market is the toughest business of all times. It’s a war of emotions. If you loose a little grip on your emotions then the results will never be thought of.

In my point of view it is for sure that stock markets are not meant for trading. Its only meant for investments. But as a normal greedy human beings 95% of us likes only to trade in the market whether we loose or win. They think that investments are only for fool wise businessmen of the world like WARREN EDWARD BUFFET etc. Intelligent greedy people will only wants to trade and make money in tons including me also. The reason for few of the smart traders for not investing in market is not they don’t want to invest in market rather they don’t know the meaning of investments. Those people who lost their capital in stock market are not unlucky people but the reason for loosing is not having any control on emotions. Stock market trading is definitely a war of emotions. If you loose from your emotions then you cannot win in stock market. As we all know that, “ Emotions have no place in business.”

There is also one rule in trading that don’t be get personal with any of the stock. Don’t you ever get attached to the stock. Don’t think that this is the best stock in market because it has given me lot of return in the past. And again I am going to buy this stock leaving aside other good opportunities in market. There has to be no emotional relation between the trade and the trader. On that prospect sharing my own experience I had earned lot of money in single stock i.e. Hotel Leela in Indian stock market & I use to believe that I am absolutely familiar with the movements of hotel leela but proved absolutely wrong and next time in that stock I had lost more than doubled the money I earned earlier. So, don’t you ever dare to think that you can rule the movements of stock markets.

In the end concluding my article I must say that although you have to have greed and temptations in life to achieve higher aspects in life but they should be in limit and in proper plan to be executed depending upon the extent of your level to bear & tolerate the risk involved. There should be proper ethics and plans to follow in trading part of the stock market. If you forget that ethics and plan which has been made before taking trading position, then your whole system of trading went absolutely disastrous.



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