Sounds absurd.....isn't it?
But its a blunt fact. I have seen many traders start Trading Markets with a dream of earning huge sums. In those beginning days they dream of making huge money...dream of buying big car, a bunglow, expensive holidays....and what not.....
After few days they realize that they are sitting on huge losses.....most of them....almost all of them....now they trade to recover the losses...
I have a student of mine who has traded the markets for last 7 years now.....lost most of his assets.....thats ok.....the irony is- he was still dreaming of making 5-7% per day in intra-day trading. He wanted to double his money in couple of months.
When he came to me I asked him to trade for 'not loosing' first. He was surprised....I asked him to quit intraday trading focus on quality swing trades and trade for not making losses. Why should one avoid trading intraday? (More on this later)
Don't you think for making money, as a trader, we will have to learn 'not loosing'. The fact is most traders earn small sums of 4-5 trades and then one huge loss making trade to blow up their account.
This where the problem is.
There are 5 outcomes of a trade-
1. Exit with big profit
2. Exit with small profit
3. Exit at no profit no loss
4. Exit with small loss
5. Exit with big loss
Out of all above scenario- as a trader I wish to avoid only scenario 5. All other scenario are welcome.
There are many techniques for Risk Management (More on this later). I teach all these techniques in my course. The aim is to make traders learn to avoid losses and then make them learn make profits.
But its a blunt fact. I have seen many traders start Trading Markets with a dream of earning huge sums. In those beginning days they dream of making huge money...dream of buying big car, a bunglow, expensive holidays....and what not.....
After few days they realize that they are sitting on huge losses.....most of them....almost all of them....now they trade to recover the losses...
I have a student of mine who has traded the markets for last 7 years now.....lost most of his assets.....thats ok.....the irony is- he was still dreaming of making 5-7% per day in intra-day trading. He wanted to double his money in couple of months.
When he came to me I asked him to trade for 'not loosing' first. He was surprised....I asked him to quit intraday trading focus on quality swing trades and trade for not making losses. Why should one avoid trading intraday? (More on this later)
Don't you think for making money, as a trader, we will have to learn 'not loosing'. The fact is most traders earn small sums of 4-5 trades and then one huge loss making trade to blow up their account.
This where the problem is.
There are 5 outcomes of a trade-
1. Exit with big profit
2. Exit with small profit
3. Exit at no profit no loss
4. Exit with small loss
5. Exit with big loss
Out of all above scenario- as a trader I wish to avoid only scenario 5. All other scenario are welcome.
There are many techniques for Risk Management (More on this later). I teach all these techniques in my course. The aim is to make traders learn to avoid losses and then make them learn make profits.
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