Weekly Updates Sep 2nd

Reality versus Fantacy

Reality 🆚 Fantacy If a friend with little farming experience told you that he planned to feed himself with food grown on a quarter-acre (1,000 square meters) plot, you’d expect him to go hungry. One can squeeze only so much from a small piece of land.There is, how- ever, a field in which grown-ups let their fantasies fly—in trading. A former employee told me that he planned to support himself trading a $6,000 account. When I tried to show him the futility of his plan, he quickly changed the topic. He was a bright analyst, but refused to see that his “intensive farming” plan was suicidal. In his desperate effort to succeed, he’d have to take on large positions—and the slightest wiggle of the market will quickly put him out of business. A successful trader is a realist. He knows his abilities and limitations. He sees what’s happening in the markets and knows how to react. He analyzes the markets without cutting corners, observes himself, and makes realistic plans. A professional tr...

Emotional Trading

Emotional Trading Most people crave excitement and entertainment. Singers, actors, and professional athletes command much higher incomes than such mundane workmen as physicians, pilots, or college professors. People love to have their nerves tickled—they buy lot- tery tickets, fly to LasVegas, and slow down to gawk at road accidents. Emotional trading can be very addictive. Even those who drop money in the mar- kets receive a fantastic entertainment value. The market is a spectator sport and a participant sport rolled into one. Imagine going to a major-league ball game in which you are not confined to the bleachers. Pay a few hundred dollars and be allowed to run onto the field and join the game. If you hit the ball right, you’ll get paid like a professional. You would probably think twice before running onto the field the first few times. This cautious attitude is responsible for the well-known “beginner’s luck.” Once a beginner hits the ball right a few times and collects his p...

How to really buy life insurance

When faced with the prospect of figuring out how much insurance to buy, most people pluck a figure out of the air - something that just seems adequate. Or another common practice is to rely on insurance agents to decide a policy and sum assured. This is obviously not the way to make this important decision. The only reasonable way of deciding what and how much insurance you need is to unemotionally create a financial plan that your family should follow if you die suddenly. Families also have to consider the impact of both parents passing away in an accident. The impact of such a tragedy could be greater than just the sum of two deaths occurring separately. Here are five things to consider. Consider these five factors when buying life insurance Time left to retirement: Before buying any term insurance plan, an individual must assess the time left to retire and what 'sum assured' will be sufficient. Time remaining to retire here does not necessarily mean retirement fro...

Trading Aspirants

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