Trading Vs Investing

It was just 9 days back when India wrapped up a series win against the West Indies. A clean sweep was seen in T20 series. While going through the winning 11 for T20s I was a little amazed to find out that most of the star players were not a part of the TEST team. The most important thing that caught my eye was that in spite of the absence of star T20 players in TEST team, India managed to win both the test matches quite comfortably. From this, I inferred that every player has his own batting technique and temperament to handle match situations. A test match batsman at times is unable to handle the competitive environment of T20 and vice versa. So when we easily understand this gap in Cricket, then why do we fail to infer this in the stock market? Quite frequently, I have seen people trading in Futures and Options based on Fundamental Analysis and news. We all understand that Fundamental Analysis helps us in making an optimal portfolio in the long run through continuous investing. To trade and make faster profits however, we have to understand the kind of positions that are taken based on Technical Analysis, Quantitative Analysis, and also Hedging. This is where Derivatives and Data Analytics introduce you to methods that help you in taking majorly the right decisions in trading, hence establishing you as a Professional Trader. On a lighter note, using Fundamental Analysis or news to take trades in the market is basically playing your test match batsman in T20. So be careful in selecting your method of trading because in this game of stock market I assume you do not want to be bowled out soon.

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  1. June 26, 2022



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