In this post I will discuss some points on how to avoid huge trading losses that most traders suffer almost everyday.
Forcing Yourself To Trade:
This is a BIG Mistake. How many times you have forced yourself into a trade and lost huge money? I am sure many times. And why you do that? To make money or to lose money? If you are losing money then why you force yourself to trade?
Stop Forcing Yourself To Trade
You are in control of trading – neither brokers nor tip providers (if you are taking tips and wasting your money) are forcing you to trade then why you do that on the first place?
The market will do what most people will do. I mean if on a certain time there are more buyers than sellers then markets will go up, but if there are more sellers than buyers, then markets will go down. That’s the reason you see ups and down in Nifty in a single trading day.
You do not have control over the stock markets but you have control over your finances. So focus on your trades and control it. Taking a trading decision itself is as important as doing the trade. If your research is not complete do not trade.
Try to keep your stop losses to half or less of your profits. Read this article to know more.
Do Not Show Ego To Stock Markets
When we do something wrong as humans we are not willing to admit. We try to prove ourselves right next time and increase our trading capacity thereby increasing our risk. By increasing the risk we forget that losses can also increase. But we only think about the profits not losses. The result is obvious. More loss.
Our ego is a huge barrier to success in trading.
So how do you not show ego to stock markets? Do not increase your risk capacity to do revenge trading. You mat end up losing more money.
Do Not Trade With Money You Cannot Afford To Lose
You must trade with money that you do not need for at least next 6 months else you will be forced to make money and you will trade in panic.
Trading in Fear Results In Losses
Imagine your fingers tumbling while putting a trade. Do you think you will ever make a profit?
When you trade with money you cannot afford to lose you will stop out as soon as you see a loss. MTM (Mark to Margin) is almost guaranteed in every trade. In fear when you see MTM you will take a stop loss. Now combine 10-20 small stop loss + brokerages. This is a huge loss.
Trading losses SHOULD NOT Effect Your Net Worth
Do Not Add Money To A Losing Position
This is a very common practice among traders. In hope of a recovery they add trades to a losing position to average out and come out as a winner.
This is a Trading Blunder
The longer you are in a losing a trade, the bigger will be your losses. Therefore instead of averaging out and increasing the risk you must stop out of the trade. If you average out you will end up taking an even bigger loss.
It should be the other way round – you should be adding positions when a trade is going in your favor.
Plan Your Trades Well – Stop Loss and Profit Target Must Be Known Before Taking The Trade
I think the sub-heading is self sufficient. Most traders decide stop loss and profit booking but when they see a trade not going in their favor or even going in their favor they change their plan. This results in huge losses and small profits. This is very common among traders all around the world.
I hope the above post will help you reduce your trading losses.
Conservative Nifty Option Course
You can do my Conservative Nifty Option Course and learn strategies which will help you generate a monthly income without ever taking a huge loss. The losses are well protected by hedging. Whether you are an option trader or a future trader you will learn how to protect your losses and keep making profits most of the times. You can read about the course here. Fees is here. If you want to know anything about the course you can contact me.
You Can Read More On My Site
Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.
My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:
What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
Difference Between Other Courses And Mine
What Others Charge for Courses
You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.
This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.
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What You Get?
Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.
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To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.
Read the details of the course here.
If you want to enroll for the course you can do so here.
P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.
WhatsApp or Call me: 9051143004
If you have any question you can contact me.
You can read about me here and my trading mistakes here.
Dilip Shaw, Founder
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