Is Trading my cup of tea?

Hi Friends,

I read many posts on many forums including Traderji.I read many people had a huge amount to re-trade/re-enter once they lost their entire initial trading amount.

I want to learn trading,TA and all required for it.But my only fear is,what will I do once I lose my all initial amount?

I can trade with only Rs1 lac maximum. I cant bring another 1 lac.

Do I need to stay away from trading?

Thanks

Suggest you take some baby steps... without bringing in the full capital of 1 Lac.....

Good place to start would be first to familiarize how, when, what of trading......once you have some knowledge.... Trade perhaps with only 5000 in you trading account... and constantly evaluate your progress.....!!!

It's a huge topic to talk about... One will find excellent but differing views....here at TJ......Judge it for Yourself..... !!!

SG

Thanks Savantji for your instant reply.

Market runs on fear and greed factor. People do lose/make money on fear and greed factor.
I’m ready to lose that amount which is 1 lac.In my learning process I’ll try to save that amount by proper money management and all those stuffs.But I’m thinking beyond that wall,what if I lose all? Because My limit is only 1 lac.

I’m making my entry with a fear itself,that’s why,I’m not able to judge myself.

So take his advice, enter with a small amount, 5000 as he said. Since you are at a learning stage, why risk a larger amount ?? My advice would be to enter with Rs. 1000/- only and try to preserve it for 3 months. Then repeat it for another 3 months. If you blow up your account within that period, then don't trade till the time limit of 3 months is over, then re-enter with Rs. 1000. If you make profits and your capital goes over Rs. 1400, withdraw any amounts in excess of Rs. 1400. Do this till you are successful in preserving ur capital for 2 successive 3 months periods.

Only after that you can enter with a slightly larger amount, say 5000 or 10000.

Hi Beduk,

It was precisely the reason...for my suggesting to start with 5k ...because You have made it abundantly clear...that you can't replenish if you lost the Lac you bring in....!!!

I don't agree with TP's view of taking a break... No... there is no Break... Learning in this field will never end....You just have to re-invent Yourself....!!!

SG

When I said take a break, I did not mean "look away from the markets". I meant take a break from further trading till the 3 month period is over, in case you blow up your account. Suppose he starts trading with Rs. 1000 on 1st March, and blows up his money by, say, 17th April, then he should not put in any more money till 1st June. Of course, during this period he should be watching the markets and maybe doing paper trading and participating in TJ .

I am sorry...TP ...Life is too short to take any breaks... only Break one must take is when they can't figure out what the market is doing....As simple as that....!!!

SG

Agreed, and that's the reason for a newbie to blow up his account and thus take a break.. looks like we are approaching the same thing from different angles

Well,I appreciate your reply Timepassji.
There are two kinds of newbies. Innocent Newbie and Mature Newbie.I’m mature one as I know my limit (unfortunately financially).
There are money management, trading psychology, TA and all those stuffs to make money.I’ll learn it with all of your help and put my queries here.But you know,making money from the market is on probability not on any certainty. Thus, though I’m ready to give that 1 lac to the market,I wont be able to re-enter if something goes wrong.

In short,my entry is limited and with a fear.Hope you got me.

Agreed, that I should start with a 5k amount. I have couple of thousand queries, I’ll keep posting them.

P.S.- In our so called society,trading/investing in shares isn’t a healthy practice. Ahem!

Huge Thanks
Beduk

Best is to learn trading from website http://www.nseindia.com/NP/nse_paathshaala.htm. Do registration and get login id & passworld. Having done that you are allowed to trade with Rs500000/-(Not Real money). You can trade in equity as well as F&O just like in actual trading. There is no brokerage charged here so that part is to be kept in mind when you go for actual trading. Practice for few weeks/ months before indulging in actual trading.