448. Lost in Market
1. It is unfortunate that you are faced with such heavy losses in a short span of time. The first step would be to stop doing what you have been doing. As the system you are presently following even if it be through an thebestbulls.com may not work for you because of little capital. You didn't get the hint that you suck at trading when you were only down 50%? Stop trading. save more. Cut your lifestyle - don't go out to eat, don't go on vacations etc.
2. Stop with the dreams of the fast "buck". Gold quickly slips through the hands of inexperienced trade who would require impossible returns of it. Dont worry though, think of it as a lesson. I too went through this same lesson. Be happy what is left of the money otherwise you could have lost this too.
3. If you don't have the stomach for it, don't day trade. There is no guarantee in stock market, as you might have painfully learned.
4. Trade with a plan-not with hope, greed, or fear. Plan where you will get in the market, how much you will risk on the trade, and where you will take your profits. You can avoid the emotionalism, the second guessing, the wondering, the agonizing, if you have a sound trading plan.
Next, you would have to heal yourself from this affliction of intraday trading. In most cases it is just an addiction and persons who indulge in it can afford to do so. Sometimes they win sometimes they loose and they are seemingly okay with the end result either ways.
5. Take your lumps, just be sure they are little lumps. Very successful traders generally have more losing trades than winning trades. They don't have any hang-ups about admitting they're wrong, and have the ability to close out losing positions quickly.
6. When you go stale, get out of the markets for a while. Intra-day trading is demanding, and can be draining-especially when you're losing. Step back; get away from it all to recharge your batteries.
7. Program your mind to accept many small losses. Program your mind to 'sit still' for a few large gains.
8. Recognize that fear, greed. ignorance, generosity, stupidity, impatience. self-delusion, etc., can cost you a lot more money than the market(s) going against you, and that there is no fundamental method to recognize these factors.
9. Client and broker must have rapport. Chemistry between RM and client is very important; the odds of picking the right RM the first time are remote. Pick a broker who will protect you from yourself...greed, ego, fear, subconscious desire to lose (actually true with some traders). Ask someone who trades if they know a good broker. If you find one who has room for you, give him your account.
10. Have a business-like approach to the markets. Anyone who is inclined to speculate during intra-day should look at speculation as a business, and treat it as such. Do not regard it as a pure gamble, as so many people do. If speculation is a business, anyone in that business should learn and understand it to the best of their ability.
11. Analyze your losses. Learn from your losses. They're expensive lessons; you paid for them. Most traders don't learn from their mistakes because they don't like to think about them.
12. Be a small trader for at least three months, then analyze your good trades and your bad ones. You can really learn more from your bad ones.
13. A speculator should have enough excess margin in his account to provide staying power so he can participate in big moves.
You would be required to reorient your thought process to shift to a longer holding period. Where a week or month is okay with you.
14. Don't use the markets to feed your need for excitement.
Now, you must realize that the stock market is a very specialized platform and without the knowledge and understanding of it you would be prone to make mistakes you have already made earlier. Further, that you are in it alone, and there are no free lunch tickets here.
Zerodha (Trading & Demat Account)
RHP
