Skill or Luck – What do you need to be a share market success?


It has caused a long debate whether share market success is dependent on skill or luck. Most of us think that success in the stock market is mere gambling! If your luck is with you, you can win. If not, you lose. But is it really so? Have you ever given a thought to how a whole industry can run on luck! No, the share market is not mere luck. It is a real world of logic and statistics. One just needs to learn those numbers and connect them logically to get success in this world. If you learn to do technical and fundamental stock chart analysis, your decisions become more precise. The share market is never stagnant. It is always flowing, sometimes huge flows of trading activity, sometimes lighter with constantly changing data. That is why it seems difficult to predict precisely. The rise and fall of a stock can be predicted if the factors are interpreted properly. And luck has very little to do with it.

Timing is a tough factor. People suffer loss as timing often goes wrong. For that, you need to study the market for a long which can help you to develop proper timing sense. And that sense can help you to decide the right timing for any activity in a particular stock. Based on the current market situations and trading conditions you can anticipate how a stock will do in the near term. 

It may happen that some traders buy a stock after quite a research and analysis and he is successful. On the other hand, some traders earn profit by chance on the same stock. You may think that the ultimate idea is to make money, whether by doing research or by luck doesn’t matter. Chance won’t happen every time. But logic and statistics will be with you forever. With these researches and analysis anyone can explain how and why the market runs up and down.  And profit will go with that.  

When you do not get the expected result, it is not because of your bad luck but because of a lack of research. Every time you enter a trade or investment, it is important to think about what can go right and what can go wrong. It is also important to understand that something completely unexpected may occur. There is always risk out there, and analyze those and try to eliminate them. Make sure you have strategies that can handle a run of bad times. The idea is to find a strategy that would minimize the damage of a bad trade. Try to accommodate that while compounding the benefits of good trade. It involves continuous observation, hard work and good strategies. Then bad luck won’t affect you. 

Concentrate on the elements of trading that have the most real impact on trading or investment. Give more attention to your money management based on your risk appetite.  The only way that can make you a successful trader is not to depend on the element of luck while trading and focus on the elements of your research and analysis that will have the most real impact on the results, such as timing, stop levels, news events, and so on. If focus solely on results and analyze them you will realize that luck actually didn’t play any role in any trade, be it a bad one or a successful one.  

We actually don’t predict the market. We evaluate the recent conditions for trading, assess the risk and prepare for the trading. This is what makes successful traders. For that, you need to learn to study the market correctly. 

Arunava Chatterjee

Arunava Chatterjee

Founder of INVESMATE. I am a Certified Research Analyst, Value & Growth Investor, Trainer and Tech Entrepreneur. With 15 years of capital market experience, I have trained 10000+ students on INVESMATE. I have created several YouTube videos, mostly related to in-depth fundamental analysis.


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