Invictus

Thursday evening proved to be  memorable experience when we went to watch the movie ‘Invictus’. The movie, directed by Clint east wood is a remarkable lesson on life. A web search tells me that Invictus is the title of a poem, written by English Poet Henley in 1875. The first lines start with:

I thank whatever gods may be
For my unconquerable soul.

the end of this short poem says: 

I am the master of my fate:
I am the captain of my soul.
If we are masters of our fate, we cannot blame choppy markets for out trading setbacks. Let us consider the current market situation. The Nifty has broken out of a trading range. That is a buy signal.  Now comes the confusion:

1. If I have not yet entered the Market, then should I buy now? [risk: market may start a correction immediately after I enter]

2. If I wait for a correction, then what is the assurance that the market will indeed correct. Also, The correction may be shallower or deeper than what I anticipate. [risk: markets may not correct, finally pushing me to buy at panic levels]

3. If I do enter at correct levels, what is the assurance that the market may continue going up? Suppose, it begins a downtrend. Then, how do I get out? [risk: the exit may in fact be the exact low of the dip
There may be many more of such questions, which are difficult to answer.

My Notes: Extensive study enables the trader to make sensible decisions. He gets confidence because of his experience / study. He know that if he is wrong, so be it, since there will be many more opportunities.