Grief & Happiness : 2 sides of same coin

Happiness and grief are 2 sides of the coin. If some thing gives you grief then the opposite should get you equal amount of happiness.

Let us try applying this principal in the stock market.

You don’t kick yourself as much when you are sitting on a profit than the losses you make in the stock market.
This means that the grief associated with loosing money is far more than happiness that you get when you make money.

Applying this theory, your main aim should be to limit your losses and book profits as you can. It is so very important to book profits. It is very much likely that the shares you sold keep climbing up after the sales. But here too it wouldn’t hurt so much that you lost some notional profits lost than the actual loss had you not sold the shares and the prices sank.

Let us now jump to another aspect of trading. What happens when you have booked profits. Well, what happens when you win in a casino and teen patti. First thing you do is to take out the money that you had brought in the play and keep playing with only the winnings.

Are you the sort of person who feels that luck is on his side after the winnings and deploys more capital / money in trading? May God be with you as there is no one repeat no one in the history of gambling who has been consistent with the winnings.

It makes sense that a bull can make money when the market goes up, and it makes sense that a bear can make money when the market moves down. You should be able to profit from the downside as much as you do from the upside. But you can get hurt when you get piggish and refuse to take anything off the table after a huge run.

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