Different types of emotions, questions, doubts arises in our mind when we see our capital depleting overall , we see a big portion of our capital is gone now ,we left with very less compare to initial capital.
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Different concussions made by different traders
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1) They loss because of manipulator , operator , promoter , fraudsters etc ...
This type of thinking is obvious because there are manipulators , operators , insiders who are always at advantageous position than you ... It is just like that your army trying to fight with a king where his army is equipped with better weapons.
Your chances of winning is less , obviously . Am I right or wrong.?
See why I took this example because in trading profession one's loss is another's profit. It is not very different with ancient war where one king use to fight with other risking the life of his soldiers for looting wealth of opponent.
There are professionals, Institutions, prop desks, Fiis ,Diis , mutual funds , different portfolio managers serving their clients. Many players playing at the same time.
Now main point is do we not take trades as our chances are less ?
See yes big players make money but you can too make money you need to understand your strength.
Now at this point you will surprise what is retailer's strength , in front of big players . Let me list it out.
1) Less capital . You do not need very much liquidity to trade efficiently. Big player cannot trade scrip which do not have very much liquid.
2) Smooth Entry and Exit : If I say you have to enter or exit 10Lac shares of Reliance today can you execute it at a small price range no , but with a small capital it is possible.
3) We can stay away from market for long time if we do not see a clear trend. But what about big players he have to trade every market condition and they trade and bear the existence cost their.
4) You can change your trading style much to get better results but they can't do much changes .
This is just like small armies comparing with big armies , small armies have better less conflict within ,Management have less difficulties in handling , Less Budget. etc...
See you can blame big players for your loss but introspect within is this the only reason. ?
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2) They lost because they do not have big capital :
I remember a quote .
"A trader is never under capitalised his mind is underdeveloped "
First learn to grow small account. There is no guarantee that if you have a big account you will perform good.
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3) There is problem with their strategy . (search for holy grail)
See if you think a strategy formed with mathematical calculations can alone make you rich . I do not think this business is for you ... it is harsh but true.
"" It is just like the search of god outside but it is siting inside ""
Work with your trading mindset will give more results than working with strategies.
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4) Fear for losing money again
This fear is there in every trader whether you lost money made money or just starting , but what happens when you had a big loss experience this fear starts growing bigger and bigger , your decision making get affected with this fear. You get very fearful with open position when it shown some profit you just try to book ass soon as possible. You start booking small and lose big, with this derailed trading style no progress is expected.
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5) You think you should join expert traders.
Now at this point you are thinking constructively ,but this gives opportunity for fake trainers , tip providers , brokers running their own agenda. For them to convince you for their services is very easy. They clearly know how to convince. I do not say there are only fraudsters their are genuine guys too but their percentage and willingness to help you is very very less.
"It is just like in search of peace , satisfaction, god people end up in the trap of fake babas , gurus so called god messengers."
I will further explore more about the possible psychological situations after a big loss and about Loss recovery strategies in my next post.
Stay tinned .....