Are you making any money in the stock market ?
Are you making any money in the stock market?
When was the last time you asked yourself this question? Probably never or you didn’t pay any heed to this question, even if it came to your head. If this question rings some bells in your head, then it is time you pay heed to the most important question a trader needs to answer.
What makes this question most important in the life of trader is the fact that capital can only be appreciated if you have capital at first place. If your annual returns are negative, then it is not going to be long before your portfolio size turns insignificant. Unfortunately, less than 1% of the traders in stock market make more than fixed deposit returns. So it is important to know which section, you as a trader belong to?
It is interesting to see how traders show similar behavioral traits during their trading journey. Like they say, market movements follow history, as it is driven by human behavior and human behavior is still same to same kind of stimuli.
This entire self-management of the portfolio starts with a trader finding mojo in one of the segments. It can be anything ranging from cash, derivatives, commodities or anything else. Though this is an important stage in a trader’s journey, it is also important to figure this out soon rather than taking forever to discover what resonates with the trader’s personality type.
Post sticking to a segment, the trading takes over and the thoughtfulness takes a back seat. Just because as traders, we feel and hear that we can make money in stock market, we keep on trading. It is at times extremely important to take a pause and reflect on the journey so far. Have you been essentially making money? Have you really grown your portfolio? Have you really beaten the fixed deposit returns?
For all the stress and efforts and let us not forget money at stake, it is wise to understand the engine we are running. We really need to see whether the amount of effort we are in putting in, is it worth it?
To make this even simpler to understand, let’s say you started with 100k as your portfolio and have chosen cash or derivate or commodity as your instrument for navigating markets. Now you stress yourself every-day, not to forget the fear and worry of losing money and the emotional drain you undergo. What are your annual returns? is your portfolio at 106 K after one year of trading?
Wondering? Why 106k? because you can just make your pf 106k without any of the above mentioned roller coaster rides. All you need to do is just put that 100k in a fixed deposit and just do whatever but trading and after one year you are sure to get 106K (considering 6% rate of interest).
NOW DOES THIS ALL MAKE SENSE? CAN YOU CONNECT THE DOTS NOW? THAT’S WHY YOU REALLY NEED TO ANSWER THIS QUESTION.
If your answer is NO, you really need to figure out what you want to do with your money? Just because you are sweating it out, day in and day out, learning the new techniques, following new people and reading countless blogs, it doesn’t guarantee any better results and your answer is a testimony to that.
So, shall we exit the market and live a stress-free life or is there any better way?
Well, if you are “I will do it all by myself” rather than letting a pilot fly you to destination, I strongly recommend the fixed deposit or mutual fund way to safeguard your pf.
For the rest, it is simple, follow a professional advice and have a stress-free trading journey. This is essentially what large scale corporate do when it comes to working in unknown business areas, outside their core competency, they hire experts to guide them. On the similar lines, understanding the market moments is something which is a full time profession and somehow we fail to understand that It needs same amount of skill and focus as is needed in a full time profession.
There are experts who have been doing this full time as their profession and have by far the working understanding of the market. It is better to hold their hand and make money than to dive in sea without knowing swimming. These experts act as your life jacket.
So there are multiple ways to hire an expert to guide you, hand hold you. The best one is to download the ADWIZON app on your mobile phone. Adwizon is India’s first platform which connects you to professional equity research analysts in real time. So every-time you want to take a trade, all you have to do is just ask an expert for his advice on the stocks of your choice. While you get expert advice on trend and risk reward ratio you also get an indicative target with stop loss of the trade on multiple timeframes.
So, next time you want to jump into deep sea of stock market, you know where to get your life jacket before jumping. Happy stress-free swimming.