Thread by @krishchess

Awareness Post!!

Got a call from one of my follower,He started his #trading around late 2020 and initially with in six months he had doubled his capital only following some Twitter handle tips and he thought it will be easy to make money here and he made some random (1/n)

Projections and left his well paid job by late 2021 and also he sold his property (only one he had)to scale his account up by late 2021 and now his #portfolio is down by 65% (2/n)

He never booked any loss during late 2020 to mid 2021 whatever have gone down have bounced back and he exited non performers on BE or little bit profit and it became habit in those times other stocks in his portfolio compensated those DD but now all his portfolio stocks are(3/n)

Down !!

By taking to him what I understood is

1️⃣He don’t know he is a trader or a investor
(#Trading for living and investing is two different things pls don’t get confused)

2️⃣He doesn’t understand the risk involved in this business (4/n)

3️⃣He is not aware of the basic position sizing ,done big position sizing on some illiquid circuit #stocks
(Guys please do have some Risk management,Exit plans before entering into any stock)

4️⃣whatever #stocks he had bought recently exactly on the top!!(5/n)

(Guys pls have some basic entry techniques,Don’t buy extended trends, Don’t chase something on FOMO)

5️⃣He was totally relying on some Twitter handles
(Guys who are having more followers please be responsible,This guy could have bought some stocks because of you!! (6/n)

Pls educate your followers with basic risk management and importance of SL,atleast post your ideas with some SL)

6️⃣He have taken lot of trades in last three months to cover his loss but it actually aggravated the losses
(Guys pls don’t over trade,(7/n)

take some break,things are not in your favour and analyse what went wrong and improvise)

7️⃣he thought money making is easy in stock market
(No it is not,you have put some real effort to understand this business otherwise market will teach you costly lessons )