Friday, November 05, 2010

You plan to fail, if you fail to plan

Speculation, rumor, manipulation and insider trading are necessary evils in the stock market. They are necessary because without them the market will be more dead than alive.

Creating a false market is manipulation. While the man in the street will lose because of manipulation, professionals in the game of trading will win. These are the experts in chart reading. As for insider trading, the insiders have a very high percentage of winning. But sometimes, they lose as well. This is because "big snakes eat small snakes." Think about it; you will know what I mean.

For one general to succeed, thousands have to die. Thats what happened in a war. And when you are in the stock market, you are in a war. This is especially true when you trade or speculate.

Every trade you do is a battle between you and someone. If you make a profit, you are the winner and the smarter of the two. If you lose, it's the other way round.

Next time, when you are about to buy a stock, ask yourself why you are buying it. Is it for investment or for trading? How much do you know about the stock? How much do you expect to make? And how much do you expect to lose, if things go against you? Don't forget that you are pitting yourself against some of the best brains in the world.

The stock market is not the place for you to have some fun. Here, your hard-earned money is at stake. Be serious about it, or very soon your money will bid you farewell or say bye-bye, and leave you frustrated and demoralized.

Easy money is not easily made. You can be sure of that. Over the counter, you see nothing, but under it, much have been done. Plan your trade well. Remember this adage: If you fail to plan, you plan to fail.