Sabtu, 30 April 2011

the analyst in the air, the trader in the car!

two qualities are essential
to succeed in stock market-

ability to analyse the situation
so as to
"expect"
"anticipate"
"predict"
a "high-likelihood" price movement.

please note that i didn't say
"high probability".

i said
"high-likelihood"

since majority of people can
sense "high probability"
it is not profitable
for the operators
to let it happen.

hence, the importance of
"high-likelihood".

likelihood is high
when perceived probability
of the event
is low.

so coming back to what i was saying

two qualities are essential
to succeed in stock market-

first
ability to analyse the situation
so as to "sense"
a "high-likelihood" happening

and "get ready" accordingly.

second
to trade what's actually happening!

if you don't have a reasonably trained
and experienced analyst in you
but have decent trading skills
you will be like a skillful warrior
airdropped in
an unknown enemy territory
without a map/gps/compass....
panicking
much more than required!
highly stressed
vulnerable
and susceptible to traps
and mental burnout!

and if you are a good analyst
rather, an overwhelmed one
than you are likely to find yourself
analyzing forever!
even when you should stop thinking
and just follow what is in front of your eyes!

the analyst in you
feels good when his analysis
proves right
and the trader in you
feels good
if he makes money
irrespective of the anaylsis.

both seem to be so opposite
to each other.

one is so sensitive
the other is thick-skinned.

one is a thinker
the other is a doer

one is a white-collar executive
the other is a blue-collar workman

both appear to be so different

but in reality
both are complimentary
to each other....

both are meant
to maximize the profit
and minimize the threat!

both are severely handicapped
without each other....

so
what should one be?

both....

turn by turn?

no...
simultaneously!

who's the boss?
none....
both are team-mate commandos

the analyst and trader in you
are like
a team of
a cop in a car
and a cop in a helicopter
both chasing a criminal
as in "the most amazing videos"!

the cop in the helicopter
radios the cop in the car
about the location
of the fugitive on the run.
(the fugitive is free
to change his direction
as per his will!)

thereafter it is the job of
the cop in the car
to complete the task!

the job of the cop in the air
is not finished
till the cop in the car is in the street!

the analyst in the helicopter
and the trader in the car
have well defined roles!

it will be disastrous
if the trader is in the air
and the analyst is in the car!

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