WHY PEOPLE LOSE IN TRADING ?
Firstly, I would
advise you to examine yourself about your own trading, examine the reasons why
you are losing in trading.
Mostly you enter
either buy or sell trade as per the tips you have subscribed for or from your
friends or broker or from TV channels or newspapers, but never follow the tips
in full and final way. What I mean to say you hardly use the given stop loss
order for the tips got. Many a times you keep psychological stop loss means
determine to cut your trade if the stop loss level arrives, but when the price
moves to that stop loss level, you change your decision and determine your own
stop loss level for that particular trade.
Many a times you
enter a trade for intra day, but when price moves against your expectations not
keeping stop loss, you change the term of your trade and become positional
trader for that trade, and ultimately you become investor for that stock. And
whenever price moves just a little bit higher or below your entry level, you
forget your target set at the time of entering the trade, and you exit from the
trade just to release your funds, earning minor profit. Again you enter for
intraday trade and do the same mistakes very often. This process of changing
from intra day trader to investor and from investor to intraday trader
continues for a long time. Ultimately you cannot do your intra day trading nor
positional trading efficiently due to lack of enough liquidity of funds.
Some times after
entering into a trade without using stop loss tool, price moves against your
expectations for such a longer period of time that you tired with that trade
and cut the trade in a heavy loss.
If you use your
stop loss tool without considering the daily volatility of the market, naturally
it will hit very often resulting into losses.
Many a times, you
enter into a long trade in script A without making any plan for that trade, and
when price moves against your expectations, and at the same time you find some
another script B with rising price, you are tempted to cut your previous trade
in loss and enter into another long trade in the script B. But unfortunately
what happens, you enter into long trade in script B at such a higher level that
as soon as you enter in it, its price starts declining……again you find yourself
in losing trade. You again cut your that trade making loss….loss and nothing
but loss….And this continues for many a times.
Why does this
happen to you….?
(to be contd)
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