In the ancient times, when winning the wars were important in showing the strength of a particular kingdom, the foolish king always used to rush into battle without a plan, staring at defeat from the very beginning. In contrast, the wise king always used to conduct a situational analysis including the strength of the opposing party, the types of armory they are carrying and the surrounding conditions in which the battle would be fought. After careful scrutiny, the king with his faithful commanders used to chalk out a plan and the contingency plans on how to win the battle. Even a layman can guess who would have won the battle-the one with a plan or the one without a plan?

Someone had rightly said-‘there is so much to learn from history that one should not discard it like a waste paper’. Like in warfare, an investor must also get a situation report on the market in which the investor wishes to trade. This means we should have adequate knowledge of the market environment in which we are a part of. Some investors discard the system, saying it’s usually wrong. Yes, in the beginning it may contradict your system for a couple of times but as the old expression goes-learning from experience, holds true for the market believers and its faithful’s.

Instead of discarding the system as a wrong formula to follow, the investors should analyze the mistakes he/she made during the trade and correct the flaws in the system. After all, the popular adage-you can learn more from the bad trades than the profitable ones, is indeed correct if you ask the more reputed and the successful investors. Just as the king comes up with Plan A, B and C for different situations, the investor should be ready to incorporate changes in his trading system depending on the dynamic market environment.

Reputed investors in the world have not done different things but they all have done things differently. The investors should study the strategies in order to comprehend how their more accomplished counterparts managed to sustain themselves in the ever-evolving market situations. After all these investors are no extra-ordinary beings but ordinary like all of us. Determining the correct strategy for oneself will take years and years of dedication, patience and adapting to the dynamic market conditions.

 So the next time, you log in to your trading system, ask yourself this question- Do I want to run away from this market like the king without a plan or do I want to conquer the markets since I have a plan in place? Your answer will decide the fate of your trades.