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Health is your Wealth!
by Team TradersPlace on 


Was searching the internet for some good reads, came across this profound statement "it is more productive to read around one's field rather than in one's  field" Though I was aware of the general idea, it could not be put better in a single line. Instantly thought about exploring and sharing this reasoning  with all of you in some detail via my blog post.

Enough is said and known about trading pitfalls, behavior finance, risk management, trade & money management! While knowledge in these areas is of utmost important for any serious trader, there are few things around this central theme (Trading) which is very less explored or talked about. I am talking about physical fitness and mental strength of a trader!

Battles are first won in the mind. A calm mind would allow a trader to wait patiently for the right opportunities and then quickly pounce upon when they arrive. Also there are floods of emotions when you are holding trades as the prices move up and down. In short, mental strength plays a big role when it comes to trading success in financial markets.

Most would understand the value of mental strength, but why physical fitness? Common, we just need to punch some keyboard buttons to trade, it has nothing to do with endurance or physical strength! Well, brain uses more energy than any other human organ, accounting for up to 20 percent of the body's total body  energy. Analyzing, watching markets, putting trades and then sitting tight with trades on, traders brain goes in overdrive, it consumes even more energy.  Also its a well known fact that lots of sitting is not good for health. Stress and exhaustion is common at trading desks. Physical fitness helps here! Its well accepted fact that physical activity makes us feel good, builds endurance and helps us cope better with stress. 

Now that we understand that both mind & body needs to worked upon, take up one physical and one mental activity of your choice. Now the key part is to have these activities become a habit. So many people join gym or yoga club, take a sport, jog or run, start some activity with lots of energy and enthusiasm only to find themselves not able to continue  long enough for it to become a habit. What to do? I have some tips here. 

Our brains have built in resistance to new behavior. So if you want to cultivate a new habit, take small baby steps so that your mind does not notice the conspiracy. Whatever physical and mental activity you like, do it for small duration. Even 5 minutes would do. Gradually keep building upon it and you would never know when the good habit sets in.  Read "The Kaizen Way", its a small book by Robert Maurer, it explains this concept in much more detail.

I strongly believe in what I have just shared. Walking, playing chess, mindfulness(vipassana anapana) and light weight workouts is what I thoroughly enjoy and do with some regularity.  By the way good food habits, avoiding food and drink excesses, proper rest and good night sleep goes without saying. Take good care of your mind and body, your trading capital  then is in good hands, cheers :)

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Birbals wits in Finacial Markets?
by Team TradersPlace on 

Akbar was a great Mughal Emperor and Birbal was his witty minister. One day, Akbar was taking a walk in his garden with Birbal. Many crows were flying around. As he observed the birds flying, he thought of asking Birbal a tricky question.

He asked, “How many crows are there in our kingdom, Birbal?”

Birbal thought for a moment, and then said, "There are ninety-five thousand, four hundred and sixty three crows in your kingdom, Huzoor."

"How do you know that for sure?" the King asked."You can get them counted, Huzoor." Birbal said.
The Emperor again said, "If there are less than that, then?" Birbal replied immediately, "That means that the rest of them have gone on vacation to some nieghbouring kingdoms."

"And if there are more than that, then?" asked Akbar."Then it means that other crows have come to visit their relatives in our kingdom, Huzoor,” said the witty minister.

Akbar was very pleased with the answer and gave Birbal a suitable reward.

Now lets change the question to "Market kya lagta hai?" (How will market behave?). Will it go up, go down, by how much, by when & why! You would get lots of answers from lots of learned people, justifying every move of the markets. 

Earnings, Monsoon, Fiscal situation, Politics, Elections, Global Markets, Risk On/Off, Interest Rates, Liquidity, Inflation, Commodity Prices, Terrorism, War, Social Unrest, Job Markets, Scams, Etc. So many things are happening simultaneously. Information along with lots of noise, rumours, false news travels almost in real time! Its almost impossible to understand markets on so called news as its all so interconnected and all these forces act in different directions for the markets. 

You would keep getting Birbal like witty answers for "Market kya lagta hai?" But if you really want to make sense of financial markets, look at price action. Its formed by human action (people buying and selling), everything is discounted and reflected in market prices.

Picture is worth a thousand words! Technical Analysis is nothing but study of price action in pictures (price charts)!! 

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