There are two major problems with new traders. These two problems are main reasons why new traders lose money.
See this whatsapp message I got from a new trader:
Here is the text:
Hi it’s Abbas . I read your blogs and 5 days email.
I will share my experience. I started share trading in [broker’s name hidden] and lost almost 25k in first 15 days, in Feb 2018.
Then again I lost 15k in this April month in equity in intraday trading in stocks. I have less knowledge of options and futures. But after reading your website blog and option basic knowledge attachments. I have some now.
Even before your email on 23 April I lost 12k to tip advisor. I don’t how they get our numbers and keep calling.
I need your advice and help. I will subscribe to your course after some time as I need a break. And I am learning and practicing trading.
Lets look at the problems of new traders:
Problem no 1: Less Knowledge
Do you think with less knowledge you can excel in any field? Especially in stock markets where your hard earned money is involved it is very risky to enter with less knowledge. Your competitors are HNIs and DIIs. Do you think with less knowledge you will be able to beat them over the long period of time?
Think about it.
How can someone go on to lose this much money in greed for making more. I fail to understand this.
Is your story the same as any of the above? With less knowledge there is less than 0.1% chance that you will succeed.
Problem no 2: Tip Advisory Services
Once a new trader is unable to succeed on his own he turns to tip advisors. This is the next blunder. Name one person who became rich trading the stock markets by taking tips. I have written an post on why tips cannot make you rich.
Look at their promises – SMS or calls like we will make you 1 lac daily and the poor retail trader gets trapped. Forget about 1 lac daily. Average retail trader loss due to tip providers exceed 1 lakh. Loss on paying a monthly service to get tips and loss on trading the tips. Do not believe in guaranteed profit promises from the tip providers.
If you try to call them after losses there is no one to pick the phone.
They give 5-6 calls daily. They know very well that non of the service takers will be able to trade all of them. So if someone calls them they can easily say you did not trade all calls, so we are not to blame.
Then you leave their services, someone else joins. 🙁
Its sad but the problem lies with the trader too.
And the problem is this:
NEW AND EXPERIENCED STOCK TRADERS BOTH WANT TO GET RICH VERY FAST WITH EITHER SPECULATION TRADING OR TAKING TIPS.
Let me tell you clearly and honestly that making money in any business takes time. Stock trading is also a business not a magical source of income. And expecting 10% a month from stock markets is also a blunder.
Look at this ROI (Return of Investment) Yearly graph of Berkshire Hathaway:
And a note on their Compound Annual Growth Rate (CAGR):
However you analyze it, Berkshire’s long-term performance has been awesome. Using market value, he says, its shares gained 21.6 percent annually compared with 19.4 percent for book value and 9.9 percent for the Standard & Poor’s 500-stock index, with dividends. Using market returns, the shares gained a cumulative 1,826,163 percent since he took control.
Read that again just a gain of 21.6 percent annually yet Warren Buffett goes on to become worlds riches man.
Yes its true that he compounded millions of dollars to make billions. But ultimately it was compounding that did its job.
History has it that even 21.6 percent annual gain is great return on investment. But yes this has to be consistent.
What you can do?
Stop speculating and stop taking tips. You can download this PDF file which well explains the basics of options and then you can do my option course to generate wealth over the long period of time trading options very conservatively with proper hedge to restrict your losses.
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.
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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INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.
DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. In other words I am a sub-broker. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. I strictly adhere to laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles in this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given in this website. I am not responsible for any investment decision you take after reading any article in this website. Click here to read the disclaimer in full.