Obviously it’s easy, so many here making easy money.
Those foolish institutionals/FII/DIIs days are numbered.
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i did not mean that ,saw your joining date so i thought you are a newbie. My advise would be to learn from American and Europe traders because they are the one who started all these markets.
Thanks for your advice.
Trading is not easy at all. You have to learn and understand the basics to become capable and knowledgeable. It can take some time to learn and practice but that’s the only way you can become successful in the market.
If learning and practice not a way then whats the way?
Learning doesn’t guarantee market success. Harvard MBAs struggle to beat the s&p500.
If you want to chalk out a plan of your own persist along a path of learning and tryouts. You may find what you want.
Another way is to follow a system some one else has created.
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Right , trading/ investong market is more about Probabilities, Psychology and Observation.
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I have a completely opp view. Ideas and theories have to be learnt from good sources.
But then you have to do your own work and make your own system. Even if its borrowed, you need to understand it test it, look at it trade by trade, perhaps refine it and then take it live. Else you will never have enough trust and confidence to trade it when things are down. Then back to system hopping.
Else let the other guy manage your trading portfolio - but will you stick with him in extended drawdowns ? And how will you know that he does indeed have durable edge ? SEBI rules also probably make it difficult to do this and you need to deal with compliance issues.
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For systematic trading systems backtester is available to validate the system. From the backtester results it is possible to ascertain the system metrics including the drawdowns.
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yeah, that’s a start but backtesting anyway can be flawed. And drawdowns can esp be over optimized if there is a single outlying period.
Say if i were to buy a system, i would still not use it as it is. We need to look at each individual rule and check what its adding, and stress test it, test how it works with different params and rule out over optimization issues.
I would instead prefer to take the core idea, test it and if it looks promising then design the system myself - and then maybe compare.
Perhaps that’s too much. At the least having some forward test results, especially from someone you know could help confirm backtest validity. If you know system has been profitable for a friend for multiple years then i guess that could be good enough. + Manage risk and diversify …
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If a system is over optimized its pretty evident in the backtester results provided it is spread over a fairly large number of trades and time. Better to do paper trading with live data or do live trading with min capital than forward test using software. Any pitfalls of the system like impractical backtester assumptions would be easily visible.
Having said that anyone who wants to put the time and effort can build something of their own.
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It totally depends on your knowledge, skills, and hard work. If you have a good understanding of the market then you can generate money from the market very easily.
Easiest things are hard to implement in life…
Its very hard to be simple.
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Well people find hard to believe that simple things work. Once that belief comes in it will be simple to follow simple things.
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Trading is hard. You cannot be a successful trader if you do not have proper knowledge of the field. Traders must also have analytical skills to find out if the market is in their favour or not. Blindly investing will only result in a loss.
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Knowledge doesn’t guarantee market success. If that was the case then Harvard MBAs would be beating S&P500 consistently.
There are certain things in life that cannot be taught. Its just like the sense of timing when you are batting in cricket or when you hit a table tennis ball. Some have it some don’t.
Either be willing to spend a lot of time to read, try out and try to find out what works for you. Be willing to loose bit of money too. As they say we cannot learn swimming reading a book. We have to get into the water. If that seems too hard then try to follow a method some else has created for market success.
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Trading is not so hard, but its hard to find out proper systematic approach to market. It takes time . for me its take almost 6 years.
Trading is a matter of probability. Keep learning, spend time in market is necessary. More u experienced more probability.
In different market conditions approach should be different. At some point traders get some confidence. Can manage their trade easily.
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We cannot classify whether trading is hard or easy because if you have deep knowledge of the market and experience, it will be easy for you to make money from trading and vice versa. Also, profits do not depend on the nature of the market, it is completely based on your devotion.