Does Correct Analysis and Making Money Go Hand In Hand?

September 28, 2013

Does Correct Analysis and Making Money Go Hand In Hand?

Greetings from Hitesh! If you look at the above captioned subject and if you think logically….your answer would be YES. In fact, most of you believe that being right and making money goes hand in hand. Let me share my experiment with you all.

Our Experiment:-

From 1^st July, we had started a weekly free call services to those who enrolled us. On last Friday we have completed 13 weeks. We are happy to tell you that on an average each of our call has generated 5% return per week!! It works out to 60% for the last 13 weeks (we did not gave calls in 9^th week due to market volatility). To put it simply, the guy who started with just Rs.1 lakh should have Rs.1.60 lakhs by now. We talked to couple of our free call traders and found that the highest somebody made is Rs.23890 for investment of Rs.1 lakh. Looking at the market moves….23% returns is also very good….but it is not even half of what he could have made!

Our Recent Calls in USD:-

On 24^th June we wrote our most read and appreciated article “Golden Opportunities for NRIs After 5 Years – Are you ready?  - Miss This At Your Own Responsibility”.  When INR to USD rate was at 58….we gave a call to transfer USD to India at 60/62/64/66/68……..just see from 58 it exactly touched 67.75 by 29^th August. From 29^th August it made a low of 61.60 in Sepember. If you look in Percentage terms….it moved up 15% in just 2 months and it fell by 10% in one month…how many of you followed our call? It was also 100% correct and 100% free!!!

What Explains This Paradox?

There is an inverse relationship between correct analysis and trading results. There are many traders who are thinking that more or better analysis is going to give them the confidence they need to do what needs to be done to achieve success. But the fact is you can’t use analysis to overcome fear of being wrong or losing money. It just doesn’t work!

How Smart Traders Play?

They believe that “Action is the ultimate knowledge.” For them how they deal with their analysis is more important than just analysis. They focus on accepting the risk. Taking risk is the most important skill you can develop.

The best traders aren’t afraid of loss because they really believe that trading is simply a probability game, concepts like “right” and “wrong” or “win” and “lose” no longer have the same significance.

They stay in the flow because they don’t try to get anything from the market; they simply make themselves available to the market and market opportunities, so they can take advantage of whatever the market is offering at any given moment.

The winners have attained a mind-set—a unique set of attitudes—that allows them to remain disciplined, focused, and, above all, confident in spite of the adverse conditions. As a result, they are no longer susceptible to the common fears and trading errors that plague everyone else.

Our Secret Formula:-

We follow the following steps…..if you wish you can also follow them and share the results with us.

1)  Trade without fear or overconfidence.

2)  Perceive what the market is offering from its perspective. (Develop the HABIT of listening to the  market and not to the market experts).

3)  Stay completely focused in the “now moment opportunity flow,”

4)  Spontaneously enter the “zone,” it is a strong virtually unshakeable belief in an uncertain outcome with an edge in your favor.

What Next?

If you like making money…..you need to follow the above rules with rigidity and be flexible in your expectations about the results.

If you need personalized guidance, real time support in dealing with your trading traumas, you can write us. I thank you for being my regular reader.

Wish you a Thoughtful Sunday.

Hitesh Parikh.