You bought a stock at 100. It becomes 1000(1000% return) Now stock falls 50% from the high. You didn't lose 50% gain but actually, you lose 500% return.
That's why "losses work geometrically against you
2⃣- Compound psychology 💡
Many trader don't know this math👇
⚡If you take 2 trades in the year & each give 40% return then your compounding return will be 96%
⚡if you take 4 trade in the year & each give 20% return then your compounding return will be 107%
1⃣ #stock selection process - always choose that stock which are consolidating near all time high
(Because whenever stock will give all time high breakout then it will easily give 20/30% return in 1/2 months
2⃣Volume analysis - In that consolidating period volume should be high of up move days then down move days. And last 3/4 month volume of accumulation is must higher then previous days.
3️⃣ fund diversification - always deploy your capital in 3/4 stocks, not more then that or not less then 3.
And, your 3/4 stocks must be from different strong sectors.