You know, I am not exactly the kind of a person who makes new year resolutions. Even if I would make one, I wouldn’t follow through and that makes me feel more miserable than if I would not have made any resolutions at all. But this year it’s a little different, or so I hope.
I was in a project meeting last week and our manager asked a question to the team – “According to you, what is the most valuable resource?”. Someone said “money”, while some other person said “water”. Few other obvious answers followed like “air”, “food” and “petrol”. Someone even said, “human resource”. Poor chap must be part of the HR department before joining our team.
Then the answer came from the manager. He said, “The most valuable resource in this Universe, which we all take for granted, and waste it assuming that we have it in abundance, is TIME”. That’s right my friends, Time is the most valuable resource that we have. Frankly speaking, we human beings are not really programmed to utilize each and every moment in our lives and make the best use of it. But we wish we could make better use of the available time. Just think, don’t you feel super guilty when you keep watching Netflix or YouTube for hours without even realizing how much time you have spent (or wasted) unknowingly? Yet you do that again the next day, and yet another day, and every day.
Well, I am also having a difficult time with “Time” these days. I am an Indian guy and we Indians follow the time zone called IST (“Indian Stretchable Time” as we joke sometimes). For non-Indian guys, that means being late or not reaching on time anywhere. Although I am an Indian by birth, I feel that I am a European or an American from within when it comes to following time. I hate being late. The only problem is that this thought is not being reflected into action, no matter how hard I try. And I reach late everywhere… almost every time. My bad 🙁
So, I decided to make my Year 2020 resolution around this problem. As you can see, the beginning is not very promising though, as the resolution itself has been delayed by a month 😉
So, I set following goals for this year,
- Being on time, every time, wherever I go.
- Waking up on time
- Going to bed on time
Then I thought 3 goals would be too much to start with. So, I immediately dropped 2 goals (without wasting any “time”) and zeroed on just one goal – the first one from the list above. Well, I have been able to achieve this goal 50% of the time so far (out of two events I attended lately, I was on time for one 😛 ).
By the way, If you have been reading my blogs, you know that I am a Stock Market enthusiast. If you follow the crooked version of “IST” in the Stock Market, then it will be a difficult place for you to be in. Here are a few Stock Market pointers around the “Time” for you,
Do not try to Time the market
Timing the market means predicting the price movements of stocks or indices. This is the holy grail of stock market participants. Imagine if you get a crystal ball that will tell you which stock will move in which direction by exactly how many points. This is the dream every Stock Market investor and trader has. However, this is just a dream. It is impossible to time the market.
The National Stock Exchange (NSE) in India has a total market capitalization of more than US$2.27 trillion making it the world’s 11th-largest stock exchange as of April 2018 (Reference: Wikipedia). You are nobody in front of the Market with our thousands or lacs of rupees in our trading account. You do not have the power to move the Stock Market. You have to follow the market wherever it goes, it will not follow you. That’s the bitter truth and that’s how it works. So, if someone tells you that Market will touch so & so level by so & so date, just run in the opposite direction as fast as you can.
Trading styles based on Time-frames
When people talk about the Stock Market, they talk about Investing. Yes, investing is one of the many ways people interact with the Market. Investing is essentially buying and holding stocks of companies for many years in the hope of gaining profits due to an increase in the stock price over time. However, there is another class of people called “Traders” who actively buy and sell stocks with increasing or decreasing stocks prices.
Many people are afraid of Stock Markets because of “Intra-day trading” which according to them is very risky. Intraday trading is essentially buying and selling shares on the same day, which is usually uncomfortable or inconvenient for working people.
However, there is another style of trading which is called “Swing Trading” which lets you buy and hold the shares over several days or months. Swing trading is very popular among traders as it does not require you to sit in front of your screen and track the market the whole day.
There is one more set of traders called “Scalpers” who take trades for a few seconds to profit from a tiny change in stock prices to gain money using large quantities. This can be seen as an advanced level of intraday trading and beginners should stay away as it requires special skills and tools to do such kind of trading.
Watching the Market Time & again
When you buy stocks, it is quite natural to check the price of that stock again and again. This is quite normal. However, the problem with this is that you cannot concentrate on anything else. It takes effort and discipline to stay away from the stock market once you take a position. My mentor taught me a Stock Market song,
“When the signal comes,
Take the position,
Put the stop-loss,
And no further discussion”.
It means that based on your research and study, whenever it is the right time to buy (or short) a stock, do it without hesitation. Once you get into the position, protect your capital by putting appropriate stop-loss and then forget about the stock. No further discussion and not looking at the stock prices over and over.
It certainly helps to keep your anxiety level in control. It is an essential skill of a trader.
Now is the Time to start with the Stock Market
Those of you who always wanted to trade in the Stock Market but for whatever reason hesitated to do it, NOW is the time. Now is the perfect time to learn this game called Stock Market Trading. And this is not a money-game, this is a mind-game. Yes, if you have the right knowledge, right attitude and discipline, you can earn money in the Stock Market.
Money is just a byproduct. It will come for sure. What you need to ensure that you are doing right things in the Market because it will not spare you if you are ignorant.
So, what is your New Year Resolution for this year? I’d love to know. Write in the comments section below.