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Mercantile Exchange Nepal Limited                                   MEX EXPRESS
         Invest - Trade - Earn                                                                 A Smart Solution for Online Trading
An ISO 9001:2008 Certified Exchange

KYC: Silver                                                         MEX News Portal                                               Volume: 6 • Issue: 2 • Year: 2014 A.D

             PAGE 2                                                                                     PAGE 3  Market Perspective

                                                                                                                                                         PAGE 4

    From the CEO’s Desk                                             Trading Psychology

      Iwould gladly like to take this opportunity                   The mental state of affairs of a it might be risky. Precisely, fear is an Phenomenon of changing emotion
                           to share to all the stakeholders of the         trader and his response to market emotion that is necessary for a trader, with change of market condition is
                       Nepali financial market about the launch of
                       our new tradable contract of the physically  during trading is termed as Trading but when this fear becomes immense, a natural reaction. But on the other
                       deliverable Silver, the sole purpose of
                       which is to increase the outreach of silver  Psychology. Trading Psychology trader can be prevented from doing hand, a trader should learn to quantify
to all level of the consumers at a fair price. It gives immense
pleasure to observe the positive feedback about the new             comprises of many emotions such as trade that might be essential and right. threats as well as profitability for safe
product from the overall commodity market.
                                                                    fear, greed, nervousness, excitement                                                and smooth trading. Traders enter into
Continuing the series of good news, the budget of the country,
popularly known as the fiscal policy, has significantly               et cetera. These all happen because Greed: Greed is simply an excessive market with optimism. If decision
addressed the regulation issue of the Nepali commodity market.
The budget has announced the regulation of the commodity            of the differences between the aspiration to make additional profit goes in their favor, it makes them
exchanges under the supervisory authority, Securities Board
of Nepal (SEBON). To add to the endeavor from our side,             expectations formed before trading by winning any trade even if this excited or thrilled. But if the market
we have been carrying out series of trainings to educate the
people about the commodities market. Several discussion and         and the actual outcome of it. Different additional profit might be unrealistic goes the opposite way, it drags them
interaction program are carried out to address and execute the
needs of the local market conditions.                               types of emotions can be seen when too. Investor waits long until last into anxiety, fear and panic. Traders

It is true that it makes a lot of difference when something is      money is involved in trading. Fear tick to make more and more profit; may come into such mind traps that
done in a group and not individually. Activities carried out with
a balanced and encouraged state of mind will surely help create     and Greed are two major emotions although some times this greed may possibly will lead to misjudgment
a conducive environment in the Nepali Commodity Market.
Here, I would like to appreciate the significant contribution of                                                                                         and loss. Hence a good trader must
all the associates of the exchange – Clearing Member, Brokers
and Clients for supporting us in these innovative steps to this                                                                                         identify, understand and neutralize
market growing. We are aware of the fact that the coming
days would be more challenging for us, complying with the                                                                                               them before ruining their trade.
set of standards that we and the Century Commercial Bank
Limited (CCBL) have created for ourselves to deliver the best                                                                                           Successful investors manage their
to our customers. We are all prepared and ready to take on the
challenge. We will take on this challenge and as a matter of                                                                                            emotions in order to build and retain
fact, MEX Nepal will soon come up with the local products
which will further boost the confidence of our clients in the                                                                                            confidence in the circumstances of
niche market.
                                                                                                                                                        uncertainty. It is always advisable to
To conclude, I would only like to mention that MEX Nepal
would not leave a stone unturned in doing the best to provide                                                                                           re-evaluate investment tactics and
the market with new products and latest variety of contracts
which will justify that the Commodity Market has surely to                                                                                              allow flexibility to predetermine
move ahead and MEX Nepal will surely lead the way with
diligence and innovation. MEX Nepal is always working hard                                                                                              point of price, and remain normal
to promulgate new services for the market.
                                                                                                                                                        while making decisions to modify the
                                            - Jitesh Surendran
                                                                                                                                                        plan of action. Market in motion will

                                                                    that interfere in trading frequently.       ruin even their profit margin and lead  obviously create market emotion but
                                                                      Fear: Fear is a psychological             to a loss position. This psychological  to administer it skillfully, is a good
                                                                                                                trait is not very easy to eliminate     trading psychology.

                                                                    reaction to threat of losing money or however it is manageable if the trader        Lakshman Pandit
                                                                    to prediction of accumulating loss. It follows a disciplined strategy.
                                                                    prevents us from trading that we think                                              Manager
                                                                                                                                                        Business Development
                                                                                                                                                        MEX Nepal

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