Why I avoid trading events like Election Results

Read the post to know why it's a better idea to avoid trading on the events like Election Results day.

Why I avoid trading events like Election Results
Photo by Kanchanara / Unsplash

Hello guys. How's everything going? Normally, I avoid trading intraday these events like Election Results. But why? Read the post.

Before we move forward, let's look what I have shared on my social media handles amd WhatsApp community yesterday:

In my 13+ years in stock market, I have seen so many events including few black swan events too.

Deference in known events and black swan events is: you never knew when a black swan event hit but known events are visible to us.

We can track the volatility in the known events. And high volatility brings incredibly high risk. So when we knew that risk is high, we can plan accordingly.

Let's talk about the events like Election Results. In this type of events no one can predict the market right.

Whatever we bet is like a gambling. "Lag Gaya to nishana warna tukka hi hai." And I don't believe in gambling.

I believe we are traders and doing our trading as business. We are not gamblers.

So why take such risk which is not in our hand?

In this journey, I met with so many people who said that this is the opportunity to make big. And belive me I don't find a single man till date who made his wealth due to these event trading.

People can make good profit in one or 2 days but will it bring any real change in their trading?

Whatever profit they make during these events, saw them loosing in next few weeks itself.

So why this whole sensation?

As I trader, we should focus on long term survival. Not just short term victories. These short term victories can bring excitement but wouldn't help in long term.

For long-term, we need a solid conviction, discipline and maturity while taking trading decisions.

If you ask me, I will say no to these events trading.

My reason is not only high volatility. There are so many other things too. Like high fluctuations, technical glitches, emotional decisions, unplanned risk and most importantly unprepared trading plans.

One more thing. Trading is also about probability. When we knew that probability of loosing is high then why to take unnecessary risk?

Market is not ending today. And if you follow patiently, market will give you endless opportunities every single day.

Don't you think those opportunities are more important than any opportunity which comes once in 5 or more years?

I'm a conservative trader. I don't find any excitement if I take a trade against my risk. In fact I feel regret if I made money without following the system.

For me discipline is more important than anything else. When we knew that chances are high that we may loose our discipline then we should avoid it.

It's not about trading today or not. It's all about the risk. Is it worthy to take or not?

So ask yourself and find an answer that the risk you are taking is worthy enough then whatever you are doing is justified. But if you are just fighting with market and please stop and think again.

Do share your thoughts about it in the comment box.

That's all for today. Hope you like the posts I'm sharing on my blog. Please share your feedback and suggestions too.

Have a profitable trading!

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