YOU MIGHT HAVE HEARD THIS MANY TIMES BEFORE,BUT THESE ARE THE ULTIMATE TRUTHS ABOUT THE WEAK @IRRATIONAL TRADERS ,IF YOU CONTROL YOUR DECISIONS OVER THESE 4 MAJOR REASONS , I BELIVE ,YOU WILL BE WALKING ON THE RIGHT PATH TO SUCCESS IN TRADING.MANY YEARS AGO.I MYSELF ,WAS A VICTIM OF THESE ERRORS.THROUGH SELF ANALYSIS I HAD THE CHANCE TO RECTIFY THEM.I JUST WANT TO HIGHLIGHT THEM HERE SO THAT OTHERS TOO GET BENIFITTED.
अनुक्रम ( छुपाये )
THE FATAL ERRORS THAT MAKE YOU LOSE MONEY IN TRADING
1)OVER TRADING;IF YOU HAVE MADE LOSS IN THE PREVIOUS TRADE,NEVER MIND TO TAKE IT BACK I)MMEDIATLY. FINE ,WHETEVER LOST IS LOST ;DON’T PANIC TO GRAB THEM BACK .BECAUSE MARKET WON’T WORK THAT,ACTUALLY.YOU NEED TO PLAN THE RECOVERY MORE PATIENTLY THAN MAKING PROFITS.
LOOSE 4 REASON TO LOSE MONEY IN THIS MARKET
YOU SHOULD USE THEM AS A BID BUT NOT AS A SOURCE .IF YOU WANT TO MAKE DECISION LET IT BE BASED ON SOME GROUNDED THEORY.PROVEN METHOD OR YOUR OWN PRACTICE/EXPERIMENT.
3)LEVERAG(EXOPOSURE);IF YOU ARE NOT 100%SURE ABOUT THE OUTCOME OF YOUR TRADE THEN DON”T USE EXPOSURE.TRY TO UNDERSTAND THEM,EXPOSURE CREATE BETTER OPPORTUNITIES TO MAKE ADDITIONAL PROFITS.BUT THEY SHOULD BE UTILIZED ONLY WHEN YOU ARE SURE ABOUT THE PROBABILITIES.IF YOUR WINNING RATE IS ABOVE 50% AND RISK;REWARD IS >1 OR RISK;REWARD IS>3+ ONLY THEN YOU CAN MAKE USE OF IT . OR ELSE ,BELIVE ME, IT IS NOT MEANT FOR YOU .UNTIL YOU MASTER YOUR OWN TRADING TECHNIQUES AVOIDING EXPOSURE WILL HELP TO CONTROL YOUR GREED $ FEAR.IF YOU DON’T FOLLOW THIS,YOU WILL NEVER LEARN TO CONTROL YOUR EMOTIONS.
LOOSE 4 REASON TO LOSE MONEY IN THIS MARKET
SAMPLE
1)CHECK LIST TO CONFIRM THAT YOUR DECISION IS RIGHT
*BASED ON WHAT INFO THE DECISION IS MADE?
*IS THIS A EMOTIONAL TRADE?
*AM I OVER TRADING?
*HOW MUCH QTY TO TRADE @ETC.
2)HOW MUCH LOSS YOU CAN BEAR FOR A PARTICULAR TRADE.
3)WHENN TO BOOK PROFITS .
4)WHAT TO DO IF THIS IS A WINNER .
5)HOW TO HANDLE THE PROFIT ,WHETHER TO ACCUMULATE IT FOR COMPOUNDING OR TAKE IT OUT .
TRADING IS NOT A ROCKET SCEIENCE,ONE HAS TO CREATE A BALANCE BETWEEN HIS LOGICAL THINKING @CONTROL OVER EMOTION.
NOTHING MORE.. I ALWAYS REGREAT FOR THOSE WHO LOSE MONEY , BUT THAT ‘S WHAT TRADING IS ABOUT.
