Some describe trading as purely based on “LUCK” , “Tukka marna” as we call it in Hindi, but from my perceptive trading is all about “Skills” . Skills take time to develop. Take an Example of Engineer, To get an Engineering degree a student has to study for 6 years ( 2 Years for entrance preparation and 4 Years as formal engineering degree). Doctor has to study much more. So Skills take some time to develop.
But when it come to trading, Traders want to earn money instantly. “Get Rich Quickly”, As per my experience Stock market is best place to loose money instantly but most difficult place to make money. So let me discussion difference between Luck and Skills. Luck favors the brave and Skill favors the knowledgeable
- You are trading based on Luck if 3 months you earn 20% and in 4 month loose it all. Traders having skills will look for consistent profits.
- Luck is picking the right stock and riding it up for great profits, skill is knowing when to get out and lock in profits.
- If you made money in 2007 Bull Run and losses it all in 2008 crash, You were trading on Luck But if you made money in both 2007 Bull Run and 2008 Bear Run you are having trading skills.
- Luck is having one big bet pay off for huge profits, skill is surviving 200 straight trades and not blowing up your account.
- Luck is surviving the market while not knowing what you are doing, skill is acquired after you have done your homework.
So, do you have skills as a trader or have you just been lucky So far………