Yaar, mera to always yeh believe hai ki even by total tukka also, one shud be able to earn money consistently in share market just by following money managment and strict disciplne.
Logic is as follows:
By probability logic, share price can either go up or down from a certain price (your entry price). So, there is a 50% - 50% percent proability of going in either direction. Now, you don't know which direction a share price is going to go. But, you have a fixed %age target in your mind if it goes either way.
For example, randomy you buy shares of company ABC at X price. Now, if it goes to X-1%, you'll sell it taking a loss of 1%. But if it goes in your direction, you'll hold it and take profits later at say X+3% or something (trail profit stops).
Basically, you're controlling your losses and letting your profits go higher with an equal probability of loss and profit. After say 50 trades, ideally there should be 25 profitable trades and 25 loss trades (50% probability). So, your total loss would be 25% but since you allowed your profits to go higher, total profit should be definitely higher than 25%. So, overall you gained.Even after excluding brokerages and taxes, you shud still be in profit.
I would seriously like to have your opinions on what is wrong in this if its followed consistently & with discipline for a long duration. I know ye DISCIPLNE kisi choti moti chidiya ka naam nahi hai....bahut badi musibat hai yeh par agar pinjre mein aa jaye to..........
Logic is as follows:
By probability logic, share price can either go up or down from a certain price (your entry price). So, there is a 50% - 50% percent proability of going in either direction. Now, you don't know which direction a share price is going to go. But, you have a fixed %age target in your mind if it goes either way.
For example, randomy you buy shares of company ABC at X price. Now, if it goes to X-1%, you'll sell it taking a loss of 1%. But if it goes in your direction, you'll hold it and take profits later at say X+3% or something (trail profit stops).
Basically, you're controlling your losses and letting your profits go higher with an equal probability of loss and profit. After say 50 trades, ideally there should be 25 profitable trades and 25 loss trades (50% probability). So, your total loss would be 25% but since you allowed your profits to go higher, total profit should be definitely higher than 25%. So, overall you gained.Even after excluding brokerages and taxes, you shud still be in profit.
I would seriously like to have your opinions on what is wrong in this if its followed consistently & with discipline for a long duration. I know ye DISCIPLNE kisi choti moti chidiya ka naam nahi hai....bahut badi musibat hai yeh par agar pinjre mein aa jaye to..........
. People are talking about 138/140...what are they talking about? Did the price down later in the day when i was in my Blanket?
