CRICKET AND TRADING
Cricket is considered a religion in the Indian Sub-Continent. There aren't many people who don’t know the great names like Tendulkar, dhoni, or Virat Kohli. As we switch on the tv, there is always someone who knows almost everything about the game, its rules, plans, best players, strength, and weakness of the teams. They also can tell what the captain should do when their team is three men down
But then when it comes to trading, not a lot of people seem to know what they're doing. What could be the reason for this? Why do people who can analyze every single aspect of cricket fail to understand the stock market, which seemingly is much easier to master than cricket?
Let's try to understand how we can improve our trading game and master the stock market as well as we have mastered cricket.
The first problem people ignore is lack of knowledge. Just like you wouldn't want to play cricket without even knowing the basic rules of the game, you wouldn't want to trade stocks without knowing anything about it. People love to dive heads into something they don't understand. This is why it is very important to know what you're trading in first. Thousands of traders have traded in highly leveraged products like futures and options without even understanding the risks they bring in.
Then comes the problem of a lack of analysis. A professional cricketer always studies things like the pitch, the players of the opponent team, batsmen and bowlers, and tries to find the best strategy he can to defeat them. Similarly, while trading we should always have a strategy even before entering a trade. And to create a strategy, we need to learn technical analysis. Technical analysis is basically the study to understand the direction of price movement, where the share price is best to buy and sell at. All this study will help us increase how many times we win in a trade.
This is followed by a lack of understanding of risk management. Just like a professional batsman would never enter the ground without wearing his helmet and knee pads, we should also never buy a share without understanding how to manage these risks in trading. A lot of people ignore important rules like placing a stop loss and controlling how many shares we buy. Risk management is simply the mathematics required to keep the losses low and profits high.
And finally comes the lack of understanding of the latest techniques and technology. Just like DRS and camera technology has helped cricket, technology has also changed the face of stock market trading. We also need to understand how to use the latest apps and software required to trade and understand how much profits you made in the year.
As we can see, cricket has a lot in common with the share market. With the latest season of IPL and Corona Virus lockdown underway, you can also use the time to learn more about the stock market and sharpen your trading skills. And also learn to earn from stocks and create a secondary income for yourself.
At Wealth Note Investments Pune, we explain you everything about Stock Market Trading in Pune in detail in a simple & easy to understand language. Our share market courses, Trading Complete Course and Investing Complete Course, teach you everything about share market trading and investing in detail. You can successfully start trading and investing in the stock market by yourself. So, give a call on 9858771919 to join the best share market classes in Pune.