The festival of colours ‘Holi’, is amongst the most popular festivals in the country. On this day, people gather and play with powdered colours; by smearing it on each other, squirt coloured water and toss water balloons diluted with coloured powder. Alongside, people also savour the festive delicacy of Gujiya and Thandai. The festival is celebrated to honour the triumph of good over evil. Although, if perceived, there are trading lessons one can take from the festival of Holi.
Add colours of Diversification
Holi, the festival of colours is also significant to marking the onset of the colourful season of spring, hence celebrated with colours. The diversification of colours adds to the festive zeal and makes the celebration enjoyable. Similarly, in the trading space too; we should diversify our trading stratergies based on market condions like Mometum based, Mean Reversion
Play safe to avoid hazards
The enthusiasm of Holi prevails if one takes adequate precautions. Be it any festival, one should play safe. Ideally, one should play with organic colours that are not hazardous to skin, organs or wellbeing with least effect on health. This way one can make the festival and celebration memorable for years to come. In the same fashion, it is better to invest in your Trading Education and learn the stratgies first before making a plunge in markets
Reap the sweetness of your Profitabl Trades
Holi is not just known for its colours and pomp, but also for the exclusiveness of desserts such as ‘Gujiya’ and ‘Thandai’, the preparation of which is not instant; and takes some time. Likewise, for your trading account to grow and be able to offer you better returns, you may make a sweet choice of compounding your trading capital, as wealth creation does not happen overnight or over few weeks. If you stay patient and persistent, you can reap the sweetness of your trading provided you do not overleverage yourself and bust your trading accoount.
Destroy the evils of Trading
Legend has it, that Holi is known to be a celebration of the victory of good over evil which is significant to Holika Dahan. It goes back to the event of King Hiranyakashyapu ordering his sister Holika who was rewarded with a power of defying death by fire, to enter a burning pyre with his son Prahlad since he chose to worship Lord Vishnu, instead of his father. When Holika entered the burning pyre with her nephew Prahlad; Hiranyakashyapu was certain that Prahlad would die, but due to the sheer devotion of Prahlad towards Lord Vishnu, the unexpected happened. Holika was burnt to ash, while Prahlad survived. Hence, the triumph of good over evil. Similarly, for our trading too, we should prevent mistakes that can hinder the growth of your wealth or pose as a hindrance on our wealth creation journey, such as insufficient knowledge, overleverage trades, reacting to rumours, sporadic trading and timing the market etc should all be avioded.