THE PROBLEMS OF MANY VARIABLES.

Every person who enters the market with an objective of making money, chooses one of the three routes

• Take tips from whoever is willing to offer it.
• Generate your own ideas by learning and using Fundamental and/or Technical analysis.
• Rely on free services like WA, Telegram or TV Channels or Broker recommendations.

It is easily seen that choice no 2 requires the person to work by himself while the other two are the easy routes since no work is needed. No surprise to note that these two paths are the most chosen ones.

But ultimately, these two paths become unprofitable because, there is no such thing as a free lunch. The only reason it survives into today as paths of choice is because the market does provide you with some random rewards and that keeps the hope meter ticking.

Eventually, a serious player will have to move towards choice no 2 because that is the only one that puts you in some kind of control (mainly on yourself) and some of the preferred outcomes can actually occur!

However, when you get into this path, another problem rears its head. The number of items to learn about! Between the two forms of analyses, the TA line seems more finite in the number of variable attached to it and hence a lot of people prefer it. In addition to what, the when question also gets answered by TA and that holds out a big attraction. For many, the what question gets answered a bit easily as there are so many sources, (and many free), that can provide the answer.

With expectations of a quick fix, the person takes up TA, only to find that, here too, there is a plenty of one too many variables (in an overall environment of limited variables) and that this is really no quick fix. But the attraction of being able to analyse any time frame (small to long term) and also any asset class (the framework being more or less similar for all of them), keeps the person going and as ever, random rewards of the market will keep him hooked!

But wealth or even income is not built thru random rewards and it requires consistency of action to produce a consistency in returns. For consistency of action, one needs consistency of thoughts and here, one actually gets into an entirely new territory- of having to change one’s prior (losing) habits. And here lies the crux. Initial enthusiasm may bring forth the necessary effort but impatience with the learning and application process (because of the intense desire to make money and quickly) soon leads to dissipation of that enthusiasm.

Resultant is a sure-fire regression towards the old habits- the losing ones. You see, the will power needed to change oneself, develop new habits is quite a challenge- which most people don’t possess.

Then one of the two things happens. They either continue to persist with TA desultorily, because they don’t know what else to do but their results don’t change. Only occasionally (like strong bull markets) does the market oblige with random rewards regularly enough. The other is they give up and return to the old ways- the easy path of No work. At least, some rationalise, that has come chance to work- if only I can get the right sources. Alas, that never happens but they keep up the search anyway because hope does spring eternal!

The solution? Stick to the analysis path and develop the new habits that are necessary to stay on the path. This is hard. But whoever said making money in the markets is easy? There is lots of it no doubt but you really have to work hard at it. The main work being creating a changed YOU. Think you can do that? Then, the markets may be for you. Else, just enjoy the ride, have some fun, pay the fees and move along.

Solving the problems of the many variables is the real deal. And the main variable is –YOU.