I get a lot of mails – on my blog, on facebook, and of course on firstname.lastname@example.org asking me to write on:
– borrowing, loan consolidation, student loan consolidation, bankruptcy, ….
– trading – in equities and debt, commodities, gold, silver, etc.
– futures and options, hedging,
– market timing
My response has always been that I do not know these topics. Frankly equity trading is something where I have seen more people lose money than gain money. Thanks to about 30+ years experience as a sub-broker, broker, investor, trader (for self and clients), – and other roles, my views are perhaps a little strong! I have seen 30-40 traders who have made a few crores in trading (yes 30-40, and crores both figures are correct) but I have seen at least 2000 people who have lost. Common thing to the guys who have made money are:
1. Have a fantastic adviser / broker
2. Have tremendous discipline, and know what they are doing
3. A few of them trade in world markets: no clue how their wives tolerate them. One guy has his computer (net and charts) ALWAYS ON, his phone always on, and keeps tab of US, UK, Singapore, Australia and Japanese markets. Try doing it for a week, and you will die of insomnia. He has been doing it for too long.
4. Almost all of them have a notebook in which they write what they do.
5. All of them can laugh at their own mistakes, analyse their mistakes, change strategy and have a fantastic common sense.
6. A couple of guys have doubled their money year on year for 5-7 years. This is not funny, it is amazing.
7. All of them lead a simple life. Do not take holidays for more than 3-4 days, and even if they are entertaining, they have on ear to the ground.
8. All of them are now trading for a kick – even if they stop earning they can continue the same lifestyle for the next 200 years without worrying.
9. 2 of them have investments ONLY in debt and real estate. All their risk taking is in their trading. In other asset classes, they do not like volatility. The real estate has appreciated far beyond their dreams – but it does not make changes in their life style.
Regarding topics like smart spending, hedging, market timing etc. I know so little that I could write it on the back side of a B E S T bus ticket. Not sure if it still carries an ad or it is blank. L O L.
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