4 Reasons to Lose Money in Share Market

4 Reasons to Lose Money in Share Market 

You might have heard this many times before. But these are the Ultimate
truths about the bad & silly traders. If you control your verdict
over these four key causes, I think, you would be walking on the right
path to success in trading. Many years ago, I myself, was a fatality of
these errors. Through self analysis I had the chance to rectify them. I
just want to highlight them here so that others to get benefitted.

The 4 Fatal Errors that make you lose Money in Trading
1)
Over Trading: If you have made a drop in the last trade, never wits to
take it back immediately. Fine, whatever drop is drop! Do not panic to
grip them back. Because market won't work that, really. You need to plan
the improvement more patiently than making earnings.

2) Ungrounded
Information: You trade on information from unknown source. May be he is
your Share Broker, Advisory company; any other freely available graph
based trading system. You should use them as an aid but not as a source.
If you want to make a verdict let it be based on some grounded theory,
verified way or your own practice/experiment.

3) Leverage (Exposure):
If you aren't 100 Per cent sure about the outcome of your trade then do
not use Exposures. Try to know them, Exposure make superior
opportunities to make additional profits. But they should be utilized
only when you are sure about the probabilities. If your charming rate is
over 50 Per cent and threat: reward is >1 or risk: reward is > 3+
only then you can make use of it. Or else, consider me, it isn't meant
for you. Until you master your own trading techniques avoiding exposure
would help to control your Greed & Fear. If you do not track this,
you would never learn to control your sentiments.

4) Lack of Plan:
initially planning covers all the over. Study to organize your trades.
What to do when stuff go against or in favors of you. Create a list of
measures to track

SAMPLE
1) Check List to verify that your verdict is accurate.
i. Based on what info the verdict is made?
ii. Is this an emotional Trade?
iii. Am I over trading?
iv. How much Qty to trade? & etc.
2) How much drop you can bear for a particular Trade.
3) When to Book the Profits.
4) What to do if this Trade is a loser.
5) What to do if this is a victor.
6) How to hold the Profit. Whether to accumulate it for compounding or Take it out.

Trading isn't a rocket science; one has to create a balance amid his rational viewing & control over sentiment.

Nothing more... I always regret for those who drop money, but that's what trading is about. 

 

About the Author

Swastika Investmart is one of the Top Stock broking companies in India. online share brokers firms.We offer commodity Market,Mcx,Ncdex,Currency,Online Share trading,lowest brokerage Demat Account,IPO,Mutual
Fund,Merchant Banking.