Knowledge is Money

I grew up studying the funda (popular short form for fundamentals) that "Knowledge is Power" it was also the embedded as the main spirit of my school and lodged onto the school badge too. As I grew through school to college and through my MBA the spirit has transformed itself to be that Knowledge is surely Power but that power is measured in terms of money one makes. Application of Knowledge with the right ingredients makes you rich thats the mantra.

Since I would like to call myself a  trader and moreover since I have evolved as one by fate, interest, work, professional contacts  I would relate and discuss this in the world of money markets, world of investments, day trading, stock markets, bond, forex, commodities, futures etc etc... to put in the simplest form.

Question is why am I talking about knowledge as the key ingredient, answer to this is that as we hear about derivatives from the real instances, markets..I understand that knowledge is a derivative of "Awareness" once we understand a subject we enlighten ourselves or are aware of the subject in focus we tend to gain more knowledge. As a trader if one were to succeed I would stand by the fact that awareness is the key to money making. Since I have to be aware of the market, its forces, my peers their reactions, the markets reaction, the price movements and much more. I am in the process of improving my knowledge over every second, minute, day, week, month and years and this is that adds to my experience as a trader another key ingredient.

Coming back to the bottom line knowledge sums up to money if applied in the right way with the right experience. How do I still justify this..so lets speak in the lingo of a trader. What are we looking at ..below are the answers in brief...

• Instrument to be traded - Stocks, Index, Currency, Oil, Gold, Metals, Grains
• Forces affecting the price - Supply, Demand, Economic & Non Economic Events
• Trading System - OTC, ECN, through a broker, others.
• Market & Personal Sentiment - Opinion of peers, colleagues, media, yourself.
• Technical Analysis & Indicators

Being aware of the above is a key to building your knowledge base. Once these ingredients are in place we are game to the idea of money making. I know this still sounds bookish and lame we are in a fast world but the truth is direct or indirect we are exposed to information which builds our knowledge base and interest. The intention of my blog is to share and learn too, the knowledge I have gained over a period of time in this amazing field of trading.

Theres more to come..till then cheers !