Excellent post by AW10
I happened to see the posts here today and kind of discussion going on.
Sorry Pradeep and others, I disagree with the approach that u are taking to make 4.5Cr from 1L.
Making money in market is not as simple as doing number crunching in excel. You copy the formula for few more rows and you will start seeing the numbers in 10Crs.
Have u every thought, why nobody else has made that kind of money in the market starting from the place where u are now.
We do see such amt made in the market, but that comes after many years of slogging / pain / learning / finding solid systems that suits TRADERs individual personality and attitude
and lot and lots of psychological control on Traders mindset.
Some facts that I have learned /read about trading are
1) 90% traders are looser and only 10% are winner. and out of those 10%, hardly 1 to 2% make awesome money.. but others still make lots of money.
2) Trading is 70% about psychology.. 20% risk and money mgmt and hardly 10% about trading system.
3) Trading is much bigger domain then technical analysis, or basic concepts mentioned in many popular books. If you want to learn trading then read the books
focus on trading not on Tech Analysis only. You will get to know what trading is all about - eg. come into my trading room by Alexander Edler
4) Though good system might be small % of your trading success.. but that is THE base.. If you don't have a system with +ive expectancy, just forget the returns.
You might win in few trades / for few weeks/ for few months.. but if you have poor foundation of trading / risk mgmt/ money mgmt - you will end up loosing your months of
earning in one single trade. and then u will start from row 1 of excel sheet.
5) There is a reason why most people are not successful in the market over long run because the mindset on successful trader is very different from the common human mindset.
The attributes that are good in our normal life (perfection, be right everytime, no thought of risk mgmt, limited opportunities etc..) are not applicable in trading world. So it takes time
to develop that trading mindset.. which will make millions for us.
Dear, I have gone thru the stage where you are now. Have made all the mistakes that are possible in trading..and not just once but many times.. It is tough journey ahead
and most of it the fight will be with yourself only.. your psychology / your mindset.
If could give one suggestion here - then forget the profit of your P&L and focus on Loss part of it.. and start managing them first. If you control your losses, profit will be automatically take care of itself.
You can have 4 outcome in any trade
1) Big Profit
2) Small Profit
3) Small Loss
4) Big loss..
First 3 results are acceptable and but key to trading success is our ability to learn and practice about how to stay away from 4th i.e. big losses.
I saw you trading in F&O / Trading OTM options etc, IMO, trading futures without proper system could result in big losses. OTM option is sure way to loose money if market doesn't move in that direction and in short period of time.
Hope you pickup the right skills soon.
All the best..on your journey to trading glory.
Happy Trading.
Sorry Pradeep and others, I disagree with the approach that u are taking to make 4.5Cr from 1L.
Making money in market is not as simple as doing number crunching in excel. You copy the formula for few more rows and you will start seeing the numbers in 10Crs.
Have u every thought, why nobody else has made that kind of money in the market starting from the place where u are now.
We do see such amt made in the market, but that comes after many years of slogging / pain / learning / finding solid systems that suits TRADERs individual personality and attitude
and lot and lots of psychological control on Traders mindset.
Some facts that I have learned /read about trading are
1) 90% traders are looser and only 10% are winner. and out of those 10%, hardly 1 to 2% make awesome money.. but others still make lots of money.
2) Trading is 70% about psychology.. 20% risk and money mgmt and hardly 10% about trading system.
3) Trading is much bigger domain then technical analysis, or basic concepts mentioned in many popular books. If you want to learn trading then read the books
focus on trading not on Tech Analysis only. You will get to know what trading is all about - eg. come into my trading room by Alexander Edler
4) Though good system might be small % of your trading success.. but that is THE base.. If you don't have a system with +ive expectancy, just forget the returns.
You might win in few trades / for few weeks/ for few months.. but if you have poor foundation of trading / risk mgmt/ money mgmt - you will end up loosing your months of
earning in one single trade. and then u will start from row 1 of excel sheet.
5) There is a reason why most people are not successful in the market over long run because the mindset on successful trader is very different from the common human mindset.
The attributes that are good in our normal life (perfection, be right everytime, no thought of risk mgmt, limited opportunities etc..) are not applicable in trading world. So it takes time
to develop that trading mindset.. which will make millions for us.
Dear, I have gone thru the stage where you are now. Have made all the mistakes that are possible in trading..and not just once but many times.. It is tough journey ahead
and most of it the fight will be with yourself only.. your psychology / your mindset.
If could give one suggestion here - then forget the profit of your P&L and focus on Loss part of it.. and start managing them first. If you control your losses, profit will be automatically take care of itself.
You can have 4 outcome in any trade
1) Big Profit
2) Small Profit
3) Small Loss
4) Big loss..
First 3 results are acceptable and but key to trading success is our ability to learn and practice about how to stay away from 4th i.e. big losses.
I saw you trading in F&O / Trading OTM options etc, IMO, trading futures without proper system could result in big losses. OTM option is sure way to loose money if market doesn't move in that direction and in short period of time.
Hope you pickup the right skills soon.
All the best..on your journey to trading glory.
Happy Trading.
