RECOVERING LOSS IS A TRAP | OPTION TRADING | STOCK MARKET LEARNING

 Trading to recover loss is a TRAP!

So, you have lost your capital. Don't get upset, I know it is a very bad thing that can happen to any hopeful trader. 

Just remember that it is a part of learning. A great trader must have a great loss to have a greater understand of Trading.

To minimize the loss is the only reason people like to use stop-loss feature.

If you want to know why and how to use stop-loss feature check out this article here = link

Losses are lifelong partner of a trader.

The only thing that separates people from a loss-making trader to a profitable trader is the effectiveness of cutting the trades that are running is loss.

You have to accept the loss. 

"If I don't take the loss than I am not in the loss", is a wrong approach towards loss making trades.

You have to limit your loss. 

You have to understand that a day without profit is still a day. Maybe you haven't made any profit, but you learnt something.

The day had given you something other than money. Cheerish that because it will definitely save you from making losses in the future. 

Be brave to accept the losses.

Something that you should do if you had blown up your capital:

1.  Don't invest for recovery = Do not try to recover your capital by investing more in the stock market. Why? Because you are much likely to do an emotion driven trade that will be most likely to be adding your losses. Try to recover your losses by doing something else other than trading. In the meantime, learn more on how to take better trade, how to apply risk management, and how to read charts and use indicators.
2.  Close your system = Close your system. See, believe it or not but stock market somethings feel like a slot machine, you will definitely try to gamble. Trust me, your mental health and your time is precious. You can recover all your loss but not with the mindset of 'recovering your losses'. Close the system, get out of your room, go in an open area, take a deep breath and think what to do now, other than trading.
3.  Market Education = You don't have that much education or experience about the stock market and about the Options and Futures market. 
4.  Start Small = Once you have your loss recovered or you really want to trade again than start small. For example, if you have RS:10,000 than trade maximum to 25% of your capital that is, RS: 2,500. Now this RS:2,500 is you practice amount and try to trade it by applying right risk management and try to take less loss and more profit. 

Very well then, these are the things that you should be considering doing as soon as you blown up your capital. 

 

Day 1 of Trading Mistakes | Nifty | Option Trading

 F.O.M.O

The biggest enemy of every trader is the fear of missing out.
This fear led us to take all those unwanted trades that doesn't have any logical reasoning behind it but has just a fear of missing out in the veil of Gut feelings. 

How To Deal With F.O.M.O

1. Do Mind Relaxing Exercises

Exercise such as Yoga, Pranayama, Book Reading, Meditation, Naam Jap, exercises that bring your mind and heart at peace.

F.O.M.O arises like the mud rise from the bottom of the pond and for a while make the whole crystal-clear pond looks modish. 

In the same way, fear of mission out, clouded our Judgement pattern of taking good and successful trades in the market.

2. You are not bound to anyone to take the trade.

Happy News: You don't have to take the trade!

There is no one forcing you to take the trade other than your own self.

It you, only you.

The candle will appear, the market will go either way, the time will pass, but my friend you, don't HAVE to take the trade.

You and I, or anyone else come in the market to make money but many of us loss, why? 

Because we think that if we entered in the market, and the clock strike 9:15 then we have to have trade. That's completely utter bullshit!

You don't have to Trade.

No one is pushing you to take the trade. 

Sit at the bank and watch the river flow. You are important more than the river.

3. Gratitude

If you could have a small profit for the day, take it and relaxed. 

If you had a loss for the day than remember the days when you made the profit.

Market gives money, market takes money.

But in taking the money, you decide the amount that will go back into the market.

Market don't take your money without your permission.

So be grateful for whatever profit you had made and preserve, at least 25% of your profit and never trade with that profit.

Remember, we are trading not gambling.

Luck will not always be by your side, but knowledge will always be there for you.

We trade with knowledge not with luck.

So be grateful for the profits and try to preserve some percentage of it.