Trading for a living!, Investing for the sunset years!!

In my last blog,( If you havent read the previous blog, recommend reading it  here  first,before proceeding ) we spoke about 2 important concepts instrumental to winning the war on the markets.... 1) The concept of Risk/Reward (Cut your losses, let your profits run) 2) The concept of working with probabilities (having odds in your favor) We also spoke about evolving a trading methodology, a trading system (also stylishly called as "your trading edge") which incorporates these concepts. Each individual's trading edge is unique to them because Trading/Investing are highly personalised and customised endeavours. "For a Trader, Learning about self is as important than learning about chart patterns" The first step to evolving a trading edge is to first truly understand yourself. Understand and seek answers to your qualitative aspects such as: What defines you as a person?. what kind of a personality are you? (patient/impatient, aggressive/conservative et...

The business of making money on the stock market is serious business and requires emotional stability ( as your positions and money moves likes waves up and down), patience, and most importantly discipline . To that extend, it is very important to understand how this business makes money. Often it is this lack of basic understanding that results in the tons of horror stories that we hear about the market. If you don’t know your business, you can’t succeed in it. Applies everywhere. The business of the stock market is essentially a business of managing probabilities and maintaining risk/rewards…..These are traits that you anyway use in your daily decision making in your life…its just that it happens subconsciously for other things but in the markets, you need to make those decisions more consciously….For example, lets talk about our decision to go to a restaurant for dinner…..Now whenever you eat out, you always carry the risk of a stomach infection or food poisoning. However for ...