Are we utilising resources to the best of our ability?

As Shahrukh Khan stated in the blockbuster film, 'Chennai Express' — "Don’t underestimate the power of a common man", the financial markets can deliver the same phrase with a twist. Don’t underestimate the power of information! In the age of technology and information, the world of traders has been enveloped by numerous data and reports. Life, as the traders know it, has been surrounded by scores of data emancipating from various economies and every second matters in the race towards accomplishing profits. With the passage of time, global markets have provided innovative ways to look at the markets and the fundamentals within it. Given that global markets are operating 24 hours a day and five days a week, inevitably investors will enhance their knowledge levels.

In recent times, during market operation, information does stem out from every corner of the globe with astounding pace that traders need to keep an eye on every major economy around the globe. Given the markets is a convergent point for the constant flow of information, investors should weigh the data and incorporate the ones which one feels will be imperative to his trading strategies. Easier said than done, the preceding sentence might leave some readers with a raised eyebrow and an immediate question — how do I weigh the information or how can I know the importance of such information?

In the first few trades, it is important to follow the impact of such information and wait to enact on the appropriate trade. With experience, the trader will learn the importance of such information and incorporate similar strategies in the ensuing days too.

But given the importance of the word ‘information’, are we utilising resources to the best of our abilities? Having undertaken numerous training classes related to the markets, I have noticed that participants have not been keeping themselves updated with the latest developments from around the globe. It is next to impossible to throw the dart expecting to find the bull’s eye when darkness has clouded the room. However, with light, the task of finding the bull’s eye becomes a tad easier. Information is the light, guiding traders and making the process of trading more effective.

A mentor once said — "information from the markets, if interpreted and processed in the right manner, will always reap greater results in the forthcoming days." In contemporary times, processing the given information is a major challenge for the prevailing investors. In theory, trading seems easier but when theory has to be converted into practice, life does not seem to be easy. However, with experience and practice, one will surely master the art of trading from the given processed information. Hence, information is the most important commodity in today’s global financial world.

The author is associated with Mercantile Exchange Nepal Limited in the capacity of Manager in Research and Development Department. He can be contacted through r&d@mexnepal.com