Interesting Article Somewhere from the Internet Source.
The Topic discusses various stages of a Trader’s life. It Describes how a conman man evolving himself into a investor, trader. And How he transformed himself from a Common Trader into Technical Trader and finally into an analyst.
1. Common man (knows nothing about market) :
As a Common man initially he thinks market is like gambling and only those who are lucky makes money and rest of them loose all the time , He tells himself “I have seen so many people making money and then loosing everything in this financial markets”.
2. Common man (excited to invest some Thousands after seeing his friend/ neighbor making money in bull run ):
Now he wants to know where to invest to gain fast money without knowing how to invest , so he goes from person to person to take advice and gets confused more than before as he gets the first and best advice i.e stay away from market.
3. Now he calls himself investor :
Now he plans to invest some money in some shares advised by his friend / broker , he will be happy till the date the stock is growing and gets depressed when the stock starts some downward movement.
1)Now he looks into newspapers and reads the economic column word by word.
2)He often worried about the Economy as i could hurts his profits from share markets.
3)He often google about the share he is holding to find news relevant to the stock
4)Slowly he learn that US and Global Economy impacts Indian Market too. And He learns there are Big Market Participants like FII, DII and he realized that it is very tough to competitor against them.
5)He subscribes for financial magazines to gain his knowledge even better in understanding this financial markets.
But even then undergoing all the stuff he suffer huge losses during the bear market and after some loss he enters into new role called trader as he urge himself to make money even faster to regain his older losses.
4. Trader (still knows nothing of market):
To cover his losses he puts some more money and starts intra day trading on tips issued by his friend / broker and hence calls himself trader. Though he gets some amount success in this field initially gets carried away makes more losses
5. Technical trader :
Now he starts studing mkt movements himself , but same problem again . without proper technical knowledge tries to find fast gains and gradually fails
6. Analyst :
Now he is one of the experienced people in market , newbies come to him for advice and without any hesitance and lots of confidence he starts guiding them in market , this is the best role that suits him
Which stage you are in?