Category: Market Psychology

  • Why Should You Paper Trade Options

    Why Should You Paper Trade Options

    Will you skydive without knowing how to operate your parachute?” Investing and Flying are similar, in some ways. Many new traders doubt if Paper Trading is still relevant?

  • US Presidential Elections- How Will Stocks React?

    US Presidential Elections- How Will Stocks React?

    Do presidential elections affect US stock market? How will stocks react to Mr Trump’s or Mrs Clinton’s win? Based on historical data, it may not be smooth sailing for the stock market this year. Since 1900, On average, The S&P 500 has dropped an about 1.2 percent in 4th year of second presidential terms.

  • A Trader’s Second Most Important Virtue

    In the first part, we reviewed VIRTUE OF PREPARATION i.e. that the very first quality to succeed in financial markets is PREPARATION which includes everything e.g. know-how, practice, patience and continuous improvement process for increasing your odds of success. Once your are well prepared, the next quality that will shape a trader’s success is PERSEVERANCE. So lets…

  • 3 Things You Need To Know To Be A Successful Trader

    3 Things You Need To Know To Be A Successful Trader

    So you think you can trade? Many traders, especially the beginners tend to think that trading is easy. Attracted by glitzy returns promised by various marketing campaigns, new traders tend to think that investing or trading is going to be an easy money making machine. And I am often asked why is it so? One of…

  • Structure, Not Strategy, Gives You Freedom

    Time and again, I am asked about the ultimate profitable option trading strategy i.e. which is the best strategy to trade markets? Which is the best strategy to trade options? and so on …as if there exists a HOLYGRAIL for trading and winning in the markets. My answer, has always been – “IT IS STRUCTURE, NOT STRATEGY,…

  • Why Isn’t Warren Buffett Saying This Now?

    Ever since I met with Mr Warren Buffett in 2004, my respect for him has been growing by leaps and bound, year after year. Even though I have read many major books written about him, there is nothing quite like meeting in person. I consider him my mentor, someone, who has always inspired me from…