InvestorQ : That is like saying that I need to be held accountable for my trading and investment portfolio; nobody else?
Abhi Yadav made post

That is like saying that I need to be held accountable for my trading and investment portfolio; nobody else?

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Abhi Yadav answered.
3 years ago
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That is absolutely correct. You have got to take responsibility for your trades. No point in blaming interest rates, Donald Trump and forex depreciation for your portfolio problems. Factors may be outside your control but risk management is entirely your cup of tea. Make it a point to remember the famous saying by George Bernard Shaw. I quote, “Don’t blame your circumstances. The men who get on in the world are the men who go out and look for the circumstances they want, and if they can’t find them; then make them.” In the financial markets, you just cannot pass on the buck. Once you accept this, the process becomes a lot simpler. Let me explain!

As a trader or an investor, you do not have the luxury of saying, “I tried my best, but ….” You need to do extensive homework before getting into a long or short position. Having entered into a particular position, it is also essential on your part to constantly monitor and continuously evaluate the sensitivity of your position to various changes, both within and outside your control. That’s the first step.

The second step is slightly more complex. The best way to take accountability for your decision is to look at the problem from the perspective of the other party. Let me elaborate. When you buy there is a seller. You need to understand why the other person wants to sell, when you are keen to buy. The converse holds true in case of a short position. This gives you greater confidence to take the onus. This is a mantra that you must follow whether you are a trader or an investor.

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