Sunday Thoughts: Patience is must for Traders/Investors

There is a major problem with traders and investors either the lack patience or the discipline.

In the last few months since January to May the swings of the Sensex have been wild. But the range has been roughly between 15500 to 18000. At the same time the months from April to December were time for super returns. Many traders who missed out on the previous run are trying to emulate similar returns which is not possible.

In the process traders have started taking leverage positions/margin trading/over-trading ending up losing a huge chunk of the portfolio. Investors sitting on investments would have been hit by 10-15% in this period as not all people can time well ( count me in this group too ). But with patience and discipline investors will see their portfolios grow but the over-aggressive might be hit badly. For the record i had mentioned about being cautious at 18k and with many warnings to avoid leverage.

Why am i writing this ? Well even the last few months some have been really good and some really bad for me too :). What i have realized is one needs to be patient and wait for the right investments/trades then to keep searching. This has made me go wrong with my technical trades trying to emulate previous performances :(.

Over the next couple of weeks we could see similar boring period so get prepared. A bit of time analysis suggests June onwards should be good as per the chart i posted a few days back. As of now i would review the situation in 3rd week of May or little later. Till then would reduce no of postings πŸ™‚ of stock picks…..

So what should i post ?

Well like before – I would be writing on the market happenings to create more awareness among retail investors.

Earlier articles in this mode were on market manipulation/circular trading/pump and dump.

Ushdev International 5-20% delivery volumes - Stock came in SEBI net in next 2 weeks πŸ™‚

Jaybharat Textiles and Real Estate – 18000 crore enterprise -Β  Stock came in SEBI net in next 2 weeks πŸ™‚

Circular Trading/Market Making / Manipulation – Stock Markets not so clean

Some Market Buzz --- Quite a lot of it went superb πŸ™‚

So the next couple of topics would be in similar vein.

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