Finding Your Niche.

Earning a living, or for that matter making profits from the stock markets requires talent, discipline and common sense but before all that you first need to find your calling in life.

Edward Thorp in his interview to Jack D. Schwager in Hedge Fund Market Wizards advises stock market participants-

–Do What You Love and the Money Will Follow.

–First you need to figure out what you are good at or what your skill set is and then apply these skills to the markets. If you are really good at accounting, you might be good as a value investor. If you are strong in computers and math, you might do best with a quantitative approach.

In another interview in the same book Steve Clark advises-

— Budding traders to first make sure that they understand their motivation. Not everyone who says that he wants to be a trader really does. Trading has a macho mystique to it.

So it is one thing to get attracted to markets for the action that they provide and a completely different and difficult thing to earn a living out of the markets.

[Contributed by Jitender Yadav].