Thursday, April 10, 2014

Gamble, Fear, Stocks and Trading Success might be interrelated.

When people view the Stocks Trading profession they focus on the knowledge that traders hold before the trader makes any trading. In many cases these traders are not well informed about the possible move of the institution they are focusing. They simply analyze the trend and if possible find out more about the institution. However, most of the time, any investment made by the trader is a gamble. It's a respectful game where gambler is regarded as sophisticated and educated about the next move that is to be taken. While gambling people don't know the outcome and they are completely unknown about what's going to be next for them. Similar to that, while trading no one knows whether the stock price will go up or down. It's more like rules that makes a gambler safe than luck and it's rules that make stock traders safe than information. But, sudden flow of money and sudden win in gambling does not come without fear.

Fear of losing the investment is always in the mind of every trader. Some people fear that they might lose money. Some fear they might not get enough. Whatever the case is, they fear. Fear is necessary but when it's for self-defense. In order to protect your investment if take action, eg: if you think that the price of stocks of 'A' Bank is  going to deplete by 20% and you should sell it now, they it's best for you to sell. This will influence other tradings too. If Rockefeller was not confident about his bonds, if he feared about the bond's price to decrease he would have done same thing that most of the American businessman did in his time. Understanding and taking control of fear is important when trading success is necessary.

Trading Stocks is an adventurous profession. Balance between various parts of life necessary while following this profession. Not only stocks trading, balance is necessary in all aspects of life. Trading stocks provides a test of gambling and fear. In order to success a trader must keep balance and understand the environment in which all the activities are going on and try to make rules that can protects from sudden unexpected changes in the environment. While most of the traders are running for immediate success, a successful trader always makes his own rules and indulge in every trade, every gamble which come along the way. Most important of all is the entertainment of the game. Winner and Loser are part of the game and what really sticks around is the sportsmanship and the dedication to the game.

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