1) The major reasons most traders don’t make money :
- Following tips
-No strategy
- Letting losses run
- No emotional control
But the major reason which is common in struggling traders is CONTRA THINKING.. Let me explain that in detail x.com
- Following tips
-No strategy
- Letting losses run
- No emotional control
But the major reason which is common in struggling traders is CONTRA THINKING.. Let me explain that in detail x.com
2) An avg trader's mind is possessed more with fear than greed.
In a downtrend always eager to square shorts at the 1st instance of a fall.
In an uptrend always impatient to exit longs at the slightest resistance.
Always obsessed with supposed CONTRA probability.
In a downtrend always eager to square shorts at the 1st instance of a fall.
In an uptrend always impatient to exit longs at the slightest resistance.
Always obsessed with supposed CONTRA probability.
3) This is the prime reason why most traders have fewer profit making trades & plenty of loss making ones.
No matter how good a trader/analyst, unless this urge to rush into CONTRA at every instance is not curbed, the net result month after month will turn out to be negative.
No matter how good a trader/analyst, unless this urge to rush into CONTRA at every instance is not curbed, the net result month after month will turn out to be negative.
4) Another problem is, taking a trade in anticipation & it goes against for a while, then comes back in favour.
The trader is fed up with the -ve MTM & exits the trade at cost & looks for a different trade
Good Trades may take time to go in favour. So there is no clear plan !
The trader is fed up with the -ve MTM & exits the trade at cost & looks for a different trade
Good Trades may take time to go in favour. So there is no clear plan !
5) 3 main stages of a trader -
1. Loss making
a) Big losses
b) Small Loss
2. Preserving capital
3. Profit making
a) Small Profits (Sometimes)
b) Small profits (Consistently)
c) Big profits (S)
d) Big profits (C)
You got to transition from 1a to 3d patiently. No shortcuts!
1. Loss making
a) Big losses
b) Small Loss
2. Preserving capital
3. Profit making
a) Small Profits (Sometimes)
b) Small profits (Consistently)
c) Big profits (S)
d) Big profits (C)
You got to transition from 1a to 3d patiently. No shortcuts!
6) There are 3 things common in successful traders
a) They know the risk before taking the trade
b) Focus on selected instruments & strategy
c) Pyramiding when right and exiting quickly when wrong
a) They know the risk before taking the trade
b) Focus on selected instruments & strategy
c) Pyramiding when right and exiting quickly when wrong
7) There are 2 important elements to every trade
Direction & Timing
Be wrong on one of the two & the trade is wrong.
Good traders focus on timing ( entering when risk is low & reward is big)
So even if they are wrong on the direction the loss is minimal x.com
Direction & Timing
Be wrong on one of the two & the trade is wrong.
Good traders focus on timing ( entering when risk is low & reward is big)
So even if they are wrong on the direction the loss is minimal x.com
8) So how to improve as a Trader ?
Key component in trading success is stock selection & limited focus.
-Select any 1 liquid instrument & analyse it’s historical behaviour in detail
-Build a rule based strategy around it.
-Stick to your strategy & never miss a trade in it. x.com
Key component in trading success is stock selection & limited focus.
-Select any 1 liquid instrument & analyse it’s historical behaviour in detail
-Build a rule based strategy around it.
-Stick to your strategy & never miss a trade in it. x.com
9) Know all major levels, how the instrument moves generally and behaviour of that particular stock.
- Generate additional insights and incorporate the feedback & insights back in to your trading strategy.
- This sheer focus will give you the results you have been craving for. x.com
- Generate additional insights and incorporate the feedback & insights back in to your trading strategy.
- This sheer focus will give you the results you have been craving for. x.com
10) Focus on below to improve as a trader :
Make a trading plan & follow it proeprly
Have limited focus & stick to 1 or 2 strategy
Control your emotions & improve psychology
Accept losses & learn a lesson from it
Maintain a trading journal
Be a sniper & not a machine gun
Make a trading plan & follow it proeprly
Have limited focus & stick to 1 or 2 strategy
Control your emotions & improve psychology
Accept losses & learn a lesson from it
Maintain a trading journal
Be a sniper & not a machine gun
11) If you are struggling in your trading and could resonate with the thread.
Do watch the below video(till the end) and book a 1 to 1 call with the trading team
learn.quantifycapital.in
Happy Learning :)
End of thread
Do watch the below video(till the end) and book a 1 to 1 call with the trading team
learn.quantifycapital.in
Happy Learning :)
End of thread
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