Stock Trading is as easy as playing cricket!!!

Engineering Financial Markets

Stock Trading is as easy as playing cricket!!!

Yes you read it right, stock trading is as simple as playing cricket. It is not even like the exciting T20 cricket, it is like Test Cricket.

In test cricket it is not the most flamboyant of players who make it to the top but it is the one who sticks to the basics and does the right things on every occasion. Test Cricket tests a lot about the individuals character and his ability to stay on the crease and keep playing for those singles and an occasional boundary. The batsman will have to work it out on the field. It is not the batsmen with the highest strike rate who makes it to the top but it is the batsmen with the highest average who is lauded.

I admire Rahul Dravid and Yuvraj Singh for their contribution to Indian cricket, they are greats of the game. Rahul Dravid a great cricketer in both shorter format and test cricket but Yuvraj is a great one day player and no match to his striking power of the cricket ball. Even though they are greats of the game only Rahul Dravid was able to make it big in test cricketing arena. A trader should look to trade the markets the way Rahul Dravid would play his test cricket innings to be successful.

Trading is like Test Cricket you need to continuously keep playing for those singles all day long with occasional boundaries which come along the way. A trader rarely would get a home run but need to keep working on those small continuous profits which slowly keep accumulating to build a sustainable capital sufficient enough to later trade market neutral strategies which would still yield a sufficiently large profit in rupee terms. But in contrast traders assume Trading to be like T-20 cricket and try to hit a six every other ball and cause serious damage to the portfolios. Trading is more of doing the right things repeatedly and consistently for as long as possible.  A test cricketer would still face each ball as per merit but would have analysed more about the pitch conditions and the bowlers he would be facing, Every trader should approach a trading day with lot of analysis and not think of taking it on as it comes. With such analysis and discipline a trader would definitely win in his trading game. This does not mean you would never face a loss but the odds of winning would out pace the losers.

Trade with discipline, If you want to trade successfully.

 

Happy Trading..!!

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