⚡️Timeless lessons from the book The Psychology of Money

Financial success is not a hard science. It’s a soft skill, where how you behave is more important than what you know.

We will talk about some of the most important lessons from the book.

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1/14 1⃣ No one’s crazy!

Young households in the 1980’s were less likely to invest in the stock market in response to the poor market returns of the 1970’s.

As a result these young adults missed one of the best times to invest, The S&P 500 returned an average of 14.9% from 1980-1990

⚡️Mean Reversion VS Trend Following

Trend following and mean reversion both are two great trading forms & you really cannot say that one is better than other.

It all depends on the type of strategy & market you’re trading & personal preferences.

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1/10 What Is Mean Reversion?

Mean reversion is when a market tends to swing around its mean.

When a market has moved too much to the upside, we say it’s overbought.

The goal in mean reversion trading is to identify when a market has entered oversold or overbought territory.

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⚡️Are you ready for full-time trading?

Trading is simple but not easy! you can buy or sell in just at the click of a button, but what to buy and when to buy is a difficult ball-game altogether.

95% of people who opt for trading eventually, QUIT!

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1/10 Keep these questions in mind before losing your capital.

1. Do you have a robust trading strategy?

To be a successful trader, you need a robust trading strategy with a statistical edge — Something that is thoroughly backtested & works in most of the market conditions.

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⚡️5 Tips For A New Trader-How To Turn Profitable Trader

You must have started Day Trading, 6 months passed…1 year passed….2 years passed…. you’re still not profitable or maximum at break-even.

Are you in the same situation?

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1/10 1) The law of large number(Probability) in Trading

The law of large numbers says that if the probability of something happening is X%,

the result will approach closer and closer to that probability the more attempts are made.

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⚡️The 7 Best Traders in the World

The richest and best traders in the world aren’t trading their own accounts to pay the weekly grocery bill and monthly rent they are managing billions of dollars to grow their clients capital over the long term.

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1/12 The best traders in the world are under pressure not only to make money every month but also must keep their clients satisfied with their performance.

These top traders not only have to beat the market returns but trade in markets with enough liquidity to execute.

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⚡️Top #trading #quotes of Paul Tudor Jones

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⚡️10 Realities of Trading For a Living

Trading for a living is a professional endeavor like any other. It requires a large amount of capital to go full time like other business & the returns are irregular much like being a commissioned sales person.

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1/9 It is less about trading from a lap top on the beach with a Lamborghini in the garage and more about taking on the risk, managing the uncertainty along with the stress and being rewarded for good trades.

There is no regular paycheck, there are losing weeks, months & years.

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⚡️What does a delay in #investing do to your retirement prospects?

Is there cost to investing later on in life?

In investing, considering that it doesn’t show any immediate benefits, it is one of those decisions many of us tend to put off for later

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1/10 From low earnings in the initial phase of our careers to higher expenses post marriage, the reasons are many that we fall back on. What little we save often ends up either in just the savings account or at best an FD even for years together.

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⚡️Top #trading #quotes of Jim Simons

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⚡Fixed Fractional Vs. Fixed Lot Money Management

A tried and tested approach is the concept of money management which can be the game-changer in helping you get to your trading goals.

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1/10 Why money management is important?

Losses is a part and parcel of trading. The trick here is to be able to limit your losses and find the appropriate money managing strategies to suit a situation.

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⚡Checking your portfolio return too often?

You shouldn’t be concerned about portfolio returns every now and then. Of course you have to check at some times, But looking at your portfolio returns too often can be detrimental too.

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1/6 Numbers feed emotion

In a market crisis, negative news causes anxiety and fear. In such times looking at the falling value of your portfolio can only add to that anxiety.

The opposite happens when the market is rallying; you feel like you have made all the right choices.

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⚡Calculated Risk

A calculated risk tries to determine if the risk is worth the reward based on the probabilities between success and failure.

It’s an undertaking whose potential for failure has already been estimated before any action is taken.

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1/5 Calculated risk-taking is defined as the skill of making decisions based on incomplete information and unknown future.

The skill requires the ability to act decisively based on all options available while filtering the decision making through the process of risk management

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5 Key Investment Lessons From Ramayana

Our elders often use stories and incidents from Ramayana to show us the right path in life. But epic Ramayana can be equally valuable in learning lessons on #investment and financial planning.

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1/15 Everything That Shines Is Not Gold

Ram chased the golden deer & Laxman also went out. But before leaving Sita in jungle, Lakshman drew a line and requested Sita not to cross that line. But then Ravan arrived as a saint trapped Sita to cross the line, and kidnapped her.

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⚡️Emotions in Trading and How to Use Them to Your Advantage

In the market there is no way to know what will happen next.

This is daunting for new traders, but it also provides an opportunity to use your emotions in your favor.

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1/10 Stay Positive

It is important to remain calm and not overreact to the market. You can’t predict what will happen with your trades.

So try to stay positive even when things aren’t going as planned. This way its easier for your emotions not to get in the way of your trades.

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⚡️12 Qualities of Good Traders

Let’s explore 12 qualities that good traders have, knowingly or unknowingly these qualities are the reason they thrive in the market and are net-profitable in the long term, while others lose their shirt sooner or later

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1/14 #1- Good Traders Are Excellent Risk Managers

We don’t know when trading losses are going to hit us. Good traders understand this, and they know that managing risk not only preserves their capital, it also protects their emotional well-being.

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