Forecasting and Trading

Salute the Indian Army, for protecting our national security with a strong reply to the terrorists.
Market do not like uncertainty and same has been caused by this event, As Humans we are always interested in knowing the market turning points, but when its come to trading. Remember the golden rule
“trading is not about predicting”
Like most people when I first started to trade in the markets I was under the impression that to make money from trading I had to know what the market was going to do.  I watched a lot of Blue Channels, reading lot of business news where the vast majority of the time what you see is a guest/regular making predictions about what was going to happen next for a stock or index.  As a result of this most traders, are not able to sustain in market for less than a year as they bust there trading account with no risk and money management involved.   It is fairly uncommon to do very well early on in trading so usually what happens is that instead of focusing more on your execution: exit strategy, position sizing, risk management, etc. you focus more on getting better at predicting the markets.


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