Rule #1 - Use Money You Can Afford To Lose

zazu · 1 Rule #1 - Use Money You Can Afford To Lose Thu Apr 07, 2011 10:08 pm

zazu

Senior Equity Analytic

Posts : 51
Equity Stars : 4878
Reputation : 2
Join date : 2011-03-26
Age : 39
Location : Colombo

If you are trading with funds that you need for some other activities, you are doomed to failure. This is because you wont be able to make sound trading decision. Your trading funds should be viewed as money that you are willing to lose.

Your position should be carefully analysed so you do not jeopardize other funds or assets. One of the keys to successful trading is mental trading.

You got to trade outside influencing factors, and that means your trading freedom must not be influenced by fear of losing money you really have earmarked for a specific need.

The market is not a place for sacred money.

Cheers.

Light of Hope · 2 Re: Rule #1 - Use Money You Can Afford To Lose Thu Apr 07, 2011 11:56 pm

Light of Hope

Vice President - Equity Analytics

Posts : 1014
Equity Stars : 5895
Reputation : 59
Join date : 2011-04-04

good advise. some people have the wrong impression that they can double, tripple their investment immediatly and do not see the risk they take. new comers, strictly follow.

StocksWatch · 3 Re: Rule #1 - Use Money You Can Afford To Lose Fri Apr 08, 2011 12:54 am

StocksWatch

Assistant Vice President - Equity Analytics

Posts : 720
Equity Stars : 5823
Reputation : 186
Join date : 2011-02-12

Not necessarily unless you invest in a share like SING. That depends on your investment decisions/strategies.

No investment is risk-free. But smart investors know how to manage thier risk whilst maximizing thier return.

TortoizePlus · 4 Re: Rule #1 - Use Money You Can Afford To Lose Fri Apr 08, 2011 5:48 pm

TortoizePlus

Manager - Equity Analytics

Posts : 197
Equity Stars : 5115
Reputation : 14
Join date : 2011-02-05

Agree with this.

You should invest your extra money and not one that you borrowed from a 3rd party. It is advisable to go for margin facilities after getting enough experience on CSE and have a clear goal to settle those when things not going on your way.

mark · 5 Re: Rule #1 - Use Money You Can Afford To Lose Sat Apr 09, 2011 10:52 am

mark

Expert

Posts : 2677
Equity Stars : 9753
Reputation : 423
Join date : 2011-02-04
Age : 33
Location : Hell....

i have to confirm that investing in CSE is much more worth than putting in the banks(FD).............
i'll confirm it 100%..........but there is little risk........now many counters are still in oversold region..so don't be afraid to invest in good fundamental liquid counters......
illiquid counters with good fundamentals(ASHO,AUTO,CARE....etc).... Cool