Believe it or not, the market always gives us a chance to correct our mistakes and an opportunity to make money. The only thing we need to do is, Respect The Market because it is the boss and no one ever have become a successful trader/investor by fighting the market. We need to give up the practice of revenge trading, over trading, ego hurting, etc, etc. The market may be bullish or bearish, we always have a chance to earn profits. And when we talk about profits, we are not considering the amount of profit. It may be a hundred bucks or a thousand bucks or a lac of rupees, we should always respect our profits because a profit is a profit, no matter how much. The most important thing that most of us don’t realize is, making consistent profits is important. There is no point in making thousand bucks by taking huge risks and loosing it all, may be more than what we earned, one fine day just because we are not following our strategies religiously or are not disciplined enough to make consistent profits. It will be more like gambling, which is surely not good for your financial health.
It is believed that day trading or intraday trading is a way to loose your capital but this does not hold good for everyone out there. There are hundreds and thousands of traders who make consistent profits with day trading on a regular basis. What is the MANTRA ? The mantra is to make sure that your losses are much lesser than the profits that you make. And believe me, we have very clear and pre-defined rules for this but the only problem is that, people don’t follow them. It becomes very tough for most of us to digest the fact that we are in losses. I mean, what’s the big deal … It is the part and parcel of this game called Day Trading. It should not be bothering us so much. If we are in loss today, we can be in profit tomorrow. But our monkey mind does not allow us to accept this fact and what people end up doing is to take revenge trades, make more losses and finally quit the game with no money in their hands.
There is much more to this, but we would like to take it up with you guys later some time, when we meet up in the training sessions.
Happy Trading !!!