How market Thought me ?

Hi Friends,

In this thread I m recording all the lessons thought by market to me when I was in the initial learning period and the cost of the fee market charged me in the form of loss.

Newbies can learn how not to trade from this thread and Experienced traders can share the lessons learned by them too.


Disclaimer: all the information shared here is my own experience and Its not meant to discourage or demotivate anyone. Its for educational purpose only.

with regards,
shankar.

One who learns from others mistake LUCKY, one who learns from own mistake Hard worker. One who never learns from mistakes made daily STUPID TRADER.

LESSON 01: Never trade others Reco without your analysis

So, This lesson is generally learned by everyone in there early stages. In order make quick money we always run after some gurus or agency and take their recos. the funny thing about this lesson is some learn it soon while others take time to learn because the recos will be good and people become more addicted to it.

But remember taking trades on others recos is like travelling in a flight on auto-pilot mode. The first malfunction could be disasters. if your mentally ready to get your trading account wiped out in search of money then you can stick with this.

INTELLIGENT WAY TO USE RECOS::thumb: take the reco but analysis before using it. check whether its compatible with your risk appetite and know how much risk is involved in it. then dont enter blindly look for the good entry with minimal risk and enter.

Its hard to track all the stocks if some is giving a reco it means that stock has did something and noticed so look by your eyes and know what it had did and get the justification, then enter it.

Lesson 02: Never buy because its low or sell because its high

Most of us do this one mistake commonly thinking and buying its low, it cant go below it or thinking and selling a high, believing it cant go above it.

But, remember market will never work the way we think and its mostly designed to shake us out of the game.

Get your confirmation for a OSC or a weakening momentum at a level of resistance/support before taking such trades.

I have paid a good fee to market for this lesson too.

happy trading. !!