Habits

Our habits are more important in achieving our goals. Habits has the capability to compound things. It was found in a survey that if we can improve ourself 1% everyday, we will improve ourself 37 times in 1 year. This 1% improvement everyday can be achieved by good habits. Habits are something which is repeated by ourself for any problem without even our full consciousness. Once we build our habits properly to react positively for problems faced, then our system (Mind, Body and Brain) will take care of the problem itself

Most people will have a goal to achieve short term and long term but only few will build the habit to achieve that goal. One of the main reasons many people fail in achieving the goal is not having the proper habit. One can have a goal of gaining more wealth by doing a specific business but unless if they build a habit of learning techniques continuously in that business either practically or theoretically, that goal will remain a dream

In Stock Market, situations never remain constant all the time. It changes from day to day, week to week or month to month. The only way to gain positive control over our Investment and Trading is by continuously learning and consistently investing. An investor or trader should build the habit of learning adjustments technique everyday, then when the actual issue comes in, our habits will take care of it. When a good trader takes 10 position, the possibility of having atleast 2 failures is common in stock market. The only way the trader can come out of that wrong trade positively or at the breakeven is by knowing the adjustment techniques

Let's take the current example in stock market, Nifty gained 800 points in 2 weeks ( 9 trading sessions ) from 4th till 14th of October 2021. This is 4% increase in 9 days. Bank nifty gained little more than 4% in 1 week. Any experienced trader will have an un-biased view about the market and will have positions both the sides. If one side move is giving a profit, the other side will be in a loss. So, to overcome this, an experienced trader should know how to manage his positions. This will come only through the habit of managing positions

If a trader do not build a habit of managing the positions, he will gain more fear and panic during the trading time and book the positions at loss. Even this rising market will not give him profits. One more additional thing a trader can build in managing the positions well is by Habit Stacking. Habit stacking means when a person decides to do certain thing as a habit, he can attach that new habit to the old habit which he does everyday

For example, Let's say a person drinks a cup of coffee every morning. Now, he wants to build a habit of meditating every morning. Then he can build this habit stacking by saying himself "After i pour my cup of coffee each morning, I will meditate for one minute". This way one can build the habit stacking. In stock market, if a person learned about hedging benefits and he wants to hedge positions every time he sells an option, he can use this habit stacking process to have the risk managed. Build your habits positively and make things work better. 

Have a Great Day

B G Nareshkumar