Tuesday, March 25, 2014
Projections are used as REFERENCE POINTS
Investigative analysis includes cross-checking of visible evidence to ensure reliability and accuracy. We will need to review and revise our analysis with new developments as they come streaming. At best all absolute projections are used as REFERENCE POINTS.
Human inherent nature to solving problems can be seen in our daily behavior. When we are physically sick, we take medicines and hope for the symptoms to go away or we visit doctors to look for answers. How many of us do not actually take preventive measures? We rather act after things have gotten bad. Is it any different from our investing and trading activities?
In financial arena when things didn’t turn out right after one place the trades, the immediate reaction is to look for someone be it con-guru or analysts to provide solutions. Suddenly you become attentive what is said where you ignore any external inputs earlier! Never mind what the con-guru says. Important is you have suddenly clung onto something! That is life isn’t it!
Such behavior has no place in your trading adventure if you seriously want to embark on achieving consistent successful profitable trading financial markets.
One must have the discipline to change and retain the positive changes if you do not want to be rock around. In all my 20+ years in trading, I concluded that those who say may not be any better than you! It is better for you to quietly analyze the market and listen what it is telling or trying to tell you. Act accordingly. Don’t act in haste.
Have the patience to let market lead you.
Keep your forecast as reference and always cross-check as things develop.