Well, it’s important to study what went wrong with every trade you take. And also what went correct with every trade irrespective of the trade made profit or loss. This will give you an idea of what must be done and what must not be done in the next trade. That way with time you become a better trader.
However if you see closely at least 10% of the trades you take must be ignored. Why? Because they were pure speculative trades. Speculative trades are trades that you took just like that because “you thought so”.
NOTE: I am totally ignoring the trades you take in your account given by tip providers, brokers or your friends/relatives. They do not qualify for anything.
Ignoring such trades that are pure speculative will save a lot of time.
Just do not ignore the market risk and position sizing – risk management is paramount and it should be the first consideration in any trade. So if you took a big trade with a lot of money – then you must not ignore this.
Here are the reasons why you must ignore speculative trading:
1. They were speculative – this equals buying a lottery. Like its foolish to study whether you will get the winning prize as per numbers in the lottery similarly its foolish to study speculative trades whether they made money or not.
2. You took them out of gut feeling. You cannot and should not study gut feeling. There was no plan and you did a mistake, or, you made money which was a fluke. This does not need a study.
3. The process was bad. You took market orders. Professional traders never take market orders. They take limit orders. This gives them an edge over other traders and they get better results.
NOTE: If you are the one who takes speculative trades – you are throwing your money in the drain. If speculative trades made money 99% of the traders would have made a lot of money in stock markets. However, the story is exactly the opposite. 99% of traders lose money.
Its recommended to keep a plan in place and then trade according to that plan. Take at least 10 trades according to that plan and study them. These 10 trades taken with a plan will give you a good idea of what went wrong and right and what can be done in future to improve. However, if you study trades taken in gut feeling you are wasting your time and energy and money too.
You must have a system in place. You should know what strategy you are going to use. You must know your position sizing and you must know how much you will lose in the trade if something goes wrong or the trade does not go according to your plan.
You should be focusing more on the process of the trade and not the individual outcomes as they can be a fluke.
I have seen this with many traders who call me and tell their story. Most of the start with I have made huge losses. My first question to them is this – did you ever plan your trade like why are you taking this trade, how much you are willing to lose in this trade, why you took the biggest loss-making trade with multiple lots etc?
The answer I get is – Sir it was my Bad Luck.
Bad Luck is a good answer if you bought a lottery not if you traded and made a loss.
You should focus on the process, not in the outcome. It’s the process that you should study. The process will eventually lead you into making profits. If you focus on the outcome of any one particular trade then you will be getting into a zone where you will not understand anything. Its the process that makes you a good trader not the outcome.
If you improve the process of trading – your outcome will improve automatically.
If you’re using the right tactics to enter positions, risk management, position-sizing, trade plan – most of the times you will see positive results.
You can do my monthly income course to learn trade plan and make a monthly income without stress.
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
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Testimonials Year 2015 & 2016
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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.
This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.
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.
You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.
Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).
Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.
The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.
Technical knowledge is NOT required. No need to monitor trades every second.
In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.
Since trades are properly hedged there is no stress in trading my strategies.
I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.
11 Reasons Why You Should Do The Course:
1. TA Knowledge NOT required
2. NO Software Required
3. Regular Monitoring NOT Required
4. Continue with Your Job
5. Do Course From Your Home
6. 100% Hedged
7. Stress-Free Trading
8. Not too much money needed to trade
9. Scaling Possible
10. One Time Fee
11. FREE Support For Months
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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