What is the Cricket & Trading

I hope you all know about Cricket however we will explain a few things and then the difference between them. Cricket is an outdoor game that is a battle between two teams, and each team has 11 players. In this game, everyone gets a chance to perform and should have to perform well then winning probabilities are high. If we lose the match then loss is only time.

Trading is also a battle but not in two teams, it’s a battle or art between the individual and the whole share market. Trading is an indoor game and we have to identify big player's activities and then play in their team so winning probabilities are high. If we trying to prove ourselves that “I am right” then losing probabilities are high. In this game, you have to perform very well and win the match. Here we put time as well as money on risk so risk is very high.

Type of Cricket & Trading

The types of cricket & trading are similar and correlate as well. Let us discuss and understand them one by one.

1. T20:- it is a very short time game, in this style, every team gets 20 overs to perform and the overall game completes in 3-4 hours. T20 requires players to be quick decision-makers, fast and furious, quick on the field, etc.
2. One Day:- it is a medium-time game, in this style, every team gets 50 overs to perform and the overall game takes 6-8 hours. One-day cricket requires the player to be strategic, have good stamina, very disciplined.
3. Test:- it is a long-time game, this style gives you 5 days to perform in two parts. Test cricket requires the player to have a lot of patience, be strategic, and have high stamina.

If we go with this analogy in Trading then,

1. Intraday:- it is a one-day game, we have to Buy & Sell or Sell & Buy in a day. We have to do analysis, calculations, and execution in a live market. Intraday players have to be focused, patient, disciplined, and quick decision makers.
2. Swing:- it is the 8-15 days game, we have to Buy & hold it for a minimum of 1 or 2 weeks. Here we have to do analysis & calculations in the off-market and execute in a live market. Swing players have to be highly disciplined, good analysts, have some patience, need to be acquainted with global scenarios, etc.
3. Positional or Long Term:- this is not a game of short time, here we have to give months or years. We have to analyze the company's business and fundamentals. Positional traders or investors need to have a lot of patience, be high on vitamin M, strategic, and have good knowledge of the stock.

 

Winning Ratio

Every player can not play in all styles with similar efficiency. Rahul Dravid is good in Test Cricket but may not fit into T20. Virendra Sehwag is aggressive so he is perfect for T20 but may not long last in Test Cricket. There are some all-rounders like Virat Kohli, but frankly spiking how many of them are like. We know everyone can not be Virat Kohli.

Intraday has a much lower winning ratio, because of the psychology control and multi-task in the live market.

Swing trading is good for freshers but needs lots of practice and analysis.

Positional or Long-term players have identified a good company with a reasonable share price. So he gets a good return over the medium to long time frame.

Conclusion

To step up, you need to analyze yourself, skills, and personality. So pick one style and get the master key in it. It is better if you compare your personality with “Rahul Dravid”, “Virendra Sehwag”, and “Virat Kohli”. Then you will get which type of player you are. I may be wrong, but you have to decide for yourself.

Happy Trading and Enjoy IPL 2024..!

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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. Readers are advised to consult their Investment advisor before making any decisions based on the above write-up.