Any persons today involved in buying and selling stocks or future or commodity calls themselves traders. If you are someone who is been involved in stock market trading be it from a week ,a month or a year or many years if u have not been able to profit or make consistent returns from your trading here is a reality check to find out why?
In this article we discuss the key factors which can help you become better traders and also a profitable trader.
Most people come in stock market looking for easy money, the trading is a side business for them never a primary source of income and hence there is only a wish to make money but never the burning desire, a goal to make constant money or be a successful trader.
Usually 1st of the few trades are the happy go lucky trade’s either be it from their own gut feeling, some hot tip they saw over the internet or advice from there broker or relationship manager. If the trade turns out profitable the feeling of happiness and thrill along with a mindset that just one click and a profit of xyz number is been made makes a new trader thinks it’s pretty easy and he/she can do this if every day for x number of days can make an additional income.
But that’s just the beginning of the big hole one digs without even knowing the depth how far they will fall. Often these trader’s have no idea of money management, risk management, position size models and nor they are interested in learning these forget technical analysis or fundamental analysis to even consideration.
After the initial phase the trader here who had just made some big bucks on his few trade’s witness 1st time a stock going against and is holding on to the loss even further once stop loss hits he continues to hold on hope that market will bounce back and some over smart people will just average more on margin on their own or advice from there guru’s. Hence just adding to the loss now the whole profit is eroded and net loss just from 1 position devastates them.
The outside influence is so much that they fail to give up and again repeat same mistake over & over of big positions, poor risk rewards, getting in and out of the trades and major losses keep fighting the market or the stock. But remember in stock market one’s ego is not bigger than the trend and if one is caught on wrong side it will just lead to broke.
Many of the trader’s start looking for sure shot tips and FII operator news thinking some short cut to success is there and these kind of insider news or hot tip will make them rich quick, get back there capital make them highly profitable. Internet sites, Google ad’s, rediff shout outs and most campaigns are filled with such promises, but again nothing works cause most people are looking at wrong places and following the wrong people.
Often these kind of tips giver with FII , Operator, Insider marketing gimmicks and sure 2lakh, 5lakh profit a month are losing trader’s who are now giving tips or fake analyst’s without having proper skill or knowledge of markets. But the messages said are so strong that the new trader who wants a quick fix for his problem is lured in to it. But they never make profits from them also and just add to the emotional and financial loss during the whole period.
Apart from the above most traders’ just want it for free and hence they spend their entire trading carrier taking free trials from every advisory or tips company they could see on the internet. Day after day they will log in to some xyz website fill the trial form and take free trials and are never satisfied with the services cause 1 day trial or 3-4 trades are no way to long term success in markets.
Going against trend – Shorting just because its high and should fall is one belief most new traders carry within their mind and buying just because it is cheap and should bounce is another belief most new traders hold due to which they lose their capital.
What is the possible solution for all this, and how one can actually make the most of the opportunities stock market & any specific queries new traders have can be reached via comment section or on mail : [email protected]