Many especially new entrants are attacted to Day trading because of the hype in it. They least expect the negatives of day trading as a new entrant. Day trading is zeroed in by every player of the market whether intraday, short term, midterm or long term players. Its a battle field among many to put it simple. Nevertheless, a battle involves traps, mines, camaflouaged, guerilla attacks. Its a question I will leave to the new ones to answer if they are prepared and trained to withstand such dramatic scenerio.
I am not to discourage their enthusiam to day trade. I donot feel shame to commit here I have destroyed two of my accounts in day trading. Major reasons are :-
1. I traded mostly by instincts or tips.
2. I traded with revenge to recover my losses and that produced more losses.
3. I used to have a plan before the trade but used to give up the plan while trading thus succubing to emotions of greed or fear. Market will find this loop hole in our psyche and easily take away money from us.
4. Used high leverage sometimes upto 10 times.
5. Not placing Stop Losses (Feeling high of my trades.)
6. Not maintaining discipline at the terminal. (leaving the trade unattended).
7. Not maintained my records of trades properly which resulted in committing same mistakes again and again.
8. Not traded on same timeframe (ie entered trades on the basis of half an hour candled and switched to 1 min, 5 min, 15 min timeframes thus lost the original entry criteria).
9. Not studied the behaviour of scrips in the past.
10. I changed my strategies soon after making a loss. (I never had a tested strategy).
11. Averaging down on loosing trades.
and so......so......the list goes on.
Actually it was a time for me to leave the stock markets forever. But I thought to take a stock of why, how, where, when I lost money. Its a real retrospection into ownself and found the real culprit is me and no one else really. It was my money. It was me who traded. It was me who lost it. Whom else to blame.
Thus, finally I drawn up a plan to venture into stock trading afresh with fresh balance. I have drawn up few principles.
1. Invest for long term, atleast for 6 months duration.
2. Keep proper record of trade. (Why, when, how, what, where are to be answered without fail).
2. Let the investment grow. (Having an initial SL and trailing SL without Targets).
3. Keep trading the same shares intraday on paper. (Later real trading after I made descent money on long term investments). Thus I got real feel of the shares.
Though these are not meant to be rock hard principles to be followed by everyone. The underlying concept of having a plan, discipline, strategy, experience is the same for every one.
If everything goes well, I will continue to be visible on this forum. Otherwise, I will vanish as I appeared on this forum 1 year ago. My association with many of traderji family has been very fruitful and enjoyable. Let the journey continue.
Cheer Up.:thumb:
