Tell how u lost ur money.

raosrinivas · #11 18th May 2008, 12:26 PM

In year 2006, i ended with a net loss for the year. i stopped buying/selling for last 6 months of the year. After some gains in the first 3 months, i got so confident that i put goals, like how much i should make in a month and then breaking in to weekly gains, when the weekly gain is not met, i used to sell and try to get to the next hot stock, after not making goals for 2 weeks or rather making some loss, more frustration and more pursuit of hot stocks, to regain lost time and lost money. after a big burn, stopped and later on found that one should only buy and sell as long as he can keep cool.

Never try to regain lost money.
Never try to regain lost time.
Do not forward gains and losses.

Always start with a blank slate.

columbus · #12 18th May 2008, 01:04 PM

Greediness and fear are the TWO best known enemies of the trader/investor. You need not be a WARREN BUFFET to be a successful investor ,just conquer your enemies mentioned earlier.( Though I respect him a lot ).

suba_stocks · #13 18th May 2008, 01:40 PM

i am into equities only,first six months of my stock market life was in affordable loss but when i changed portfolio those stocks double in short time..lol ..and some even fourtimes by today....infact, i did recoverd my loss and went on to learn many things...now confident and agressive..on equities only.

i thank Traderji and its members alot

regards
suba

AW10 · #14 18th May 2008, 09:22 PM

I have lost real money in the market (now I call that as donation to the market) due to following
1) Not respecting Stop-loss on my positions
2) Changing my losing trade positions into Long term investments and holding on to them for longer period (remember the hot stocks on internet bubble and what happened to them by 2002).
3) Not having clear risk limit, position size and money management plan (it took long time for me to realise that to succeed in trading, like any other field, one has to have a plan).
4) Buying on the basis of tips given in media (tv/mags/newspaper) without putting further analysis from my side
5) Starting to play in the market without doing enough study of Technical analysis and money managment.

I also lost lot of paper money / paper profit due to
1) Not having well defined plan for exits
2) Adding on to winners when they were in sell zone (one shd add on the winners when they are in strong trend and in BUY zone.

To overcome this, now I have the goals for loss /donation/ risk defined for following
1) Max loss/risk per trade
2) Max loss/risk per week/month
3) Max loss/risk for portfolio

I do track these limits and I don't think twice to close my position as soon as they are hit.

Happy Trading,