Thursday, 8 March 2012

Expectation on trading....

1.Everything we do, will always come with expectation & same goes with trading.

2.I used to have ridiculous expectation on trading especially when first introduced on "Day Trading"

3.Until I am adapting "Trend Following", I realized that Preservation of Capital is more important than return.

4.There should be no expectation at all in trading since it will create stress & emotional torture.

5.Always remember Market Adversity that it will always want to hurt any trader financially & emotionally.

6.Always remember that if market give you 20% then it is much much better compared to any return offered by fixed deposit, mutual fund, etc

7.However historically "Trend Following" trader usually get the return between 50 - 150 % return per year.

8. Some says 50% return per year is tiny, however we must look from different perspective.
    Eg.$10,000 capital with 50 % return will give you $1,297,463 in 12 years time.

9.If some says 12 years is such a long time, then think again.. Whether you like it or not, time will pass by & you will reach that 12 years.

10."Trend Following" is a philosophy that not everybody can follow, however those who can will accumulate wealth over certain period of time.

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