I am so happy I started writing this blog. I never expected this huge response. I once again request you all to put your queries in the comment box instead of writing to me on my gmail,so that this interaction could be read by all visitors who have similar queries. I am reproducing an introductory article I wrote on my other blog , http://theamateurtraderschool.blogspot.com/ on July 4,2008.
REMEMBER: Trade what you see not what you hear
There are three types of players in the stock market. I call them The Greedy Bears, The Greedy Bulls and The Greedy Pigs. I am using the word greedy because everyone who enters the stock market is greedy for money. It is the greed to get rich quickly that lures people to the stock markets.The greedy bulls and greedy bears are the professionals , the insiders,the market movers. Their moves are always calculated. The "greedy pigs" are the ones who always get slaughtered. They get sucked into the markets after seeing the success of successful traders. They hang on to these successful traders who dole out tips, most of which has been passed down many many times, rather than basing decisions on their own research.Equity is a risk instrument. Without realising this , they buy on those hot tips only to lose their capital more often than not. The pigs or small investor is a lazy lot.He invests the least amount of energy and time into his trading. He does not have the patience to first understand his risk appetite before putting in his money. Trading needs total involvement . You cannot trade one fine day just because you have the time that day. You have to be with the stock movement to get a sense of the particular counter. It is a lot of hard work. Insufficient planning, knowledge or study, leads the pigs to make reckless moves and generate heavy losses.Just like children need to be educated to ensure a secure future, so too the amateur or novice trader needs to be educated to secure his capital and ensure low risk trading. So I thought I would open a school for them instead of making them parasites of "tips trading'. ( For tips you will find a host of websites).Whats more attractive is it is open to one and all, FREE!! Now you wont have to ask someone what stocks to buy.My school will help to understand technical analysis. Improving on it and trading as per rules of technical analysis is of course your responsibility, because I do not believe in spoon feeding.
I hope to contribute more articles to my school soon
thanx for reading patiently and keep visiting my blog,