Trading Mistakes

The most common behavior of newbie in speculative trading can be easily found in casinos. The profit on the first trade ramp up their appetite and they hunt for more. Now the greed comes into play and that’s the turning point. Idly, your trading decisions are devoid of any emotions and totally insulated from the results of previous trades but they eye for more and in a bid to take bite more than their hunger the trading streaks ends with the loss. Following events reflects the aggravated intensity of emotions. Once plunged into marginal or significant loss they attempt to recuperate the accumulated losses in one shot. This leads them to use higher leverage on irrational trade. They are fallen into the trap. The early profit entices them to put bigger money on stake just to lose much bigger amount at the end. The gist of the matter is never use any emotion while make a trading decision. Be it greed, fear, pain or pleasure.

DEVANAD: A EVERGREEN YOUTH TRADER

Millions of hearts plunged into grief with the sad demise of evergreen youth Devanand. I still remember how I tried to imitate his hairstyle in early adolescent years. Good Bye Dev sahib.

The philosophy of his iconic and cult song “ mai jindagi ka sath nibhata chala gya, hark fikr’ ko dhuyen me udata chala gya” has great significance if applies on trading. Trade with the trends.  No matter where market moves, up or down or sideways. Make your trading strategies in accordance with the market movements. And don’t let your worries (losses/risk) take over your strategies. Just forget about the losses you incurred. Let the bygone be bygone. If your trade to make up your losses you will be forced by your intuition to trade more on higher leverage and eventually it will lead you to see further losses. So keep in mind : mai zindagi ka sath nibhata chala gya, har fikr’ ko dhuyen me udata chala gya.

GOOD BYE DEV SAHAB.