There are many things that take you away from your Goal stall. Sometimes it is called a situation, sometimes it is blind faith or myth. Yes, there are some myths that take you away from your favorite thing. There are some myths in the stock market that have alienated new and old investors from the market. Today, through this blog, I am going to bring this truth to you.
Maximum people feel that a lot of money is made in the market with the help of robot trading (Algo trading), But this is not a complete conversation. Algo trading works to some extent. Not always feet.
The biggest problem of this is that it works well in volatility. But you can’t always find volatility in the market. So, when the market stable, All the signals come in this mostly hit stop-losses.
and one more thing This is a complete robotic trading system, so there is no discipline in it. It is also true that in the market the buy-sale emotion remains in us, it is not in this system. If you think only algo trading system purchase is everything, then it is wrong. Only the buy and sell signals come in this. But which trade do you want to take, and which one is not you have to decide!
Algo trading runs from a strategy, it will give you a signal according to what you have done in it. But there is no role or any way of market movement, that you make a strategy according to that. Yes that’s right strategy must be there, to work in the market. You should make one by looking at the condition of the market.
Myth 2 Big money is made from big money: –
Everyone thinks here that they are making money here, who are invested with big money, This is wrong to some extent. Yes, to some extent this is correct, but assuming that we stay or else there is no profit here with less peso, then it is wrong.
Money in the market is made through money management rather than investing big money. Whoever made money here, has always invested his money here with this money. Whoever made money here, has always invested his money here with this person that whatever he is getting risk free from outside, he should get more than that. He is not thinking about maximum returns in the market, but more than fixed deposits. In Fixed Deposits you can earn up to 6% risk free. With low risk you can earn 25% to 30% from the same amount. This is a phenomenal pattern. Rather, even the biggest fund managers do not commit the return of this percentage.
You have made 1% this again every day even 1/2%, this is a very big change. Your money will soon become double. Compound in the market works. See how you can use it.
Myth 3 Inside trading: –
This myth breaks the heart of the people. Yes, Inside Trading. Maybe, there is such a thing. I have not heard till today there is no inside trading. But let me tell you one thing that does not matter to me. And to you too, whether you are a trader or an investor. Let me explain to you.
This myth breaks the heart of the people. Yes, Inside Trading. Maybe, there is such a thing. I have not heard till today there is no inside trading. But let me tell you one thing that does not matter to me. And to you too, whether you are a trader or an investor. Let me explain to you.
Let suppose I am a trader for a time. And I bought one share in 100. Now an insider trader is shortening it with some news. If my price started falling, my stop-loss is 95. I will exit the trade in the same way as the stoploss hit. In the same way, the price is going up, so my target is 120 hits, I will be exit.
I am an investor in these second scenario. I have bought shares of XYZ Company and it is going down. That too from any insider. One thing you should always keep in mind. Whether it is the market or any stock. As time goes on, investors invest in undervalued shares. The share price and market are always discounted by Bad and Good News. They come at a fair price.
I wish You might have got to learn something from this blog. How did you like this blog, must be written in the comment box? And Your suggestions definitely matter. Thanking you.