Stock market’s theory of profits & millionaire milestone
Well this is my definition of stock markets as i see it & sense it – with all my years of maturity being in the market. Most often, there are 4 kinds of mindset hats which usually drives people to stock markets – Strategy Mindset, Success Mindset, Profit Mindset & then Greed Mindset, .. You should wear them in your trading life depending upon your experience / maturity in life & trading, so it helps you only when you wear them at best times of your life. I would best indicate that you start to wear it in the same order – indicated above.
In life like most people have accepted the theory –
Ladki ke peche mat bhago, jab tum success ke peche baghoge – tab kamyab hoga –
IN STOCK MARKETS THIS IS READ AS
– Profit ke peach mat bhago, jab tum Trading Strategy ke peche bhagoge, tab Success tumhara pecha karega – aur – Million dollar bucks & Millionaires tumhare peche padjaayenge..
i believe most people here are still in your teens – information, confirmation & then transformation are very important stages in your life. Learn these facts of life earlier, moment you start getting old – just like everybody of us your mind will have more place for ego than knowledge & individuality takes centre stage just based on ego of who you are.
Let me give you a hotshot of millionaire lifestyle in trading –
LEVEL 1> Start with a capital which you can risk & start with Equities. Your points of stress should be – to get your trading strategy right irrespective of your capital. If you learn to define your strategy based on your emotional edge – Learn to get out 3% returns on your capital everyday consistently for 9 months to one year. Well few common pit falls of this stage – don’t fool yourself by doing paper trading or investing lesser money which doesn’t bear any psychological impact on your emotions. Quantify your capital based on you – what’s big for you – trading game is all about how a person reacts after 5 successful trades or 5 successful losses – which touches your ego.
LEVEL 2> By the time you complete one year – trading would have shook you top to bottom – either you kick the market or market will kick you out- latkake mardiya hoga, at this time you would have learnt the best probabilities of trading & you would find an emotionally stable YOU with a better conscience. Now with this you will also be able to Choose Equity or F&O based on your technique of capital appreciation.
LEVEL 3> Now imagine, if you gained mastery over your strategy & learnt the art of making 3% ROI on your capital for 1 year by trading everyday or as per your emotional time cycle of judgement, that means – your capital would have also grown multifold. That’s why i say – quantify your capital based on your mindset, if your capital is big – your achievement end of the year will also look bigger to motivate you ahead. While – if you lost capital during this one year – you would have shut your trading shop & found alternative carriers for getting your motives, and again bigger the capital you loose – bigger it will be in your memory so that you don’t turn back & look at trading again to achieve your millionaire dreams.
LEVEL 4> All said now imagine – now that you have learnt the strategy to trade, start funding your dream – money is oxygen & by this time you will know how much money is required to breathe & stay alive in trading. Explore the possibilities of capital raising – Take loans that you can afford, pool money from family & friends.. explore all which ways.
LEVEL 5> Slowly when you get into the league of riches – when you turn back – you will have people queuing up to invest in your fund as you give them considerably higher than market average returns on capital invested. Now you would be ready to start your own – Asset Management Company – purely based on your goodwill in trading & nothing else.
LEVEL 6> By the time you come to level 6 – if you still have managed to have age & health by your side – go in or an IPO for your AMC. At this time when you turn back & look – you would have already become millionaire while you cross LEVEL 4. People who would have invested on you – would have become millionaires, now its time for your stocks to grow – and your stock will be on the portfolio’s of people who want to get rich just like once you were..
I believe there are more students out here off late who are tickling their curiosity around stock markets. Above article is purely based on my trading experience which is just an indicative measurement of success. Find what suits you better, best wishes to you & all of us too!
– Article by Suman Adithya Rao (SEBI Certified Research Analyst, Management Graduate in Entrepreneurship & Small Business Management)
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