#Reality
Step 1) Buy 500 stock A for intraday at 200 with stop of 197.
2) Stock moves to 205 slowly after an hour and u think ur entry is great and begin taking mtm screenshots to send to your friends.
3) Then comes a big red candle straight to 200. U assume it as retracement.
.
Step 1) Buy 500 stock A for intraday at 200 with stop of 197.
2) Stock moves to 205 slowly after an hour and u think ur entry is great and begin taking mtm screenshots to send to your friends.
3) Then comes a big red candle straight to 200. U assume it as retracement.
.
...
4) After few minutes of hovering near your cost, it begins to fall to 198.
5) U start becoming jittery. Ur mind which was tuned to only accept profits after watching mtm in point 2, is unable to accept loss. So u move your stop to 195.
6) Stock drops to 196....
4) After few minutes of hovering near your cost, it begins to fall to 198.
5) U start becoming jittery. Ur mind which was tuned to only accept profits after watching mtm in point 2, is unable to accept loss. So u move your stop to 195.
6) Stock drops to 196....
...
7) U think this is a retracement and add another 200 at 196.
8) Stock moves to 199 slowly. U feel elated and hope that it will further move up.
9) Another red candle, stock drops to 196. U start feeling nervous.
10) U remove the stop thinking that it might hit...
7) U think this is a retracement and add another 200 at 196.
8) Stock moves to 199 slowly. U feel elated and hope that it will further move up.
9) Another red candle, stock drops to 196. U start feeling nervous.
10) U remove the stop thinking that it might hit...
...
11) Ur nightmare comes true and stock suddenly drops to 192.
12) Now slowly you convert intraday to nrml and make up your mind to exit at your average cost 198 if it comes.
13) Stock moves in the range of 192-195 till half an hour left for market close...
11) Ur nightmare comes true and stock suddenly drops to 192.
12) Now slowly you convert intraday to nrml and make up your mind to exit at your average cost 198 if it comes.
13) Stock moves in the range of 192-195 till half an hour left for market close...
...
14) Then stock drops to 190. U then begin to search for fundamentals and see that company has been showing good profit growth and no debts ,,, etc. So u decide to hold this .
15) Next day stock drops 5% gap down. You don’t have any other capital as everything tied here.
...
14) Then stock drops to 190. U then begin to search for fundamentals and see that company has been showing good profit growth and no debts ,,, etc. So u decide to hold this .
15) Next day stock drops 5% gap down. You don’t have any other capital as everything tied here.
...
...
16) Stock continues to drop after some mild retracement during the next one week; You start speaking about this stock as a good one citing fundamentals to your friends. U think market is wrong and keep cursing market. In reality ur actions were wrong.
....
16) Stock continues to drop after some mild retracement during the next one week; You start speaking about this stock as a good one citing fundamentals to your friends. U think market is wrong and keep cursing market. In reality ur actions were wrong.
....
...
17) 1 month passes on; Stock at 160. Your lose mounting and you are out of stock market just bcoz of 1 wrong decision of not booking SL. Now your original trading position has changed to a long term investment.
This is how a typical retail trader does.
Nb: not to hurt any1.
17) 1 month passes on; Stock at 160. Your lose mounting and you are out of stock market just bcoz of 1 wrong decision of not booking SL. Now your original trading position has changed to a long term investment.
This is how a typical retail trader does.
Nb: not to hurt any1.
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