70% of Traders lose money in starting days of their trading Journey.
Some get anxious, some get depressed and demotivated while some lose more money trying different ways to recover their money.
You've lost money and thinking what to do, these are the Options.
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Here is what people generally do -
They try to recover the losses with very less capital.
Try to get more profits with Leverage, Intraday Trades and Options, and Guess what?
End up losing all their capital.
Trying to make back your losses by continuing your mistakes = Imposble
A 10% loss requires a 11% gain to get back to even
A 20% loss requires a 25% gain to get back to even
A 50% loss requires a 100% gain to get back to even
A 90% loss requires a 900% gain to get back to even
So If you have lost 50% of your capital, You will need 100% gain.
5 Trading mistakes that can cost you Thousands and Lakhs.
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1. Trying to buy bottoms and selling tops
'Squeezing the last drop of profit is the sure recipe to get rekt'
Don't try to buy oversold stocks and sell overbought stocks.
you will end up making losses
In trading, momentum is our friend, Try to be in the direction of the trend.
2. Not having a proper trading plan
Trading without plan or system is risky.
Your system won't work all the time and you should not distrust it with just few failures.
You should have trust on your system.
Without a proper system, you won't sustain for long term.
7 Pointers you Must Follow before entering any Trade
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1. Know your Risk.
Before you enter a trade, You must know your Stoploss level, This is the level where you will exit when the trade goes wrong.
As soon as your stoploss level gets hit, exit.
Don't think too much.
2. Profit Booking.
Take the exit on Reversals instead of fixed areas.
When you decide to exit a trade, always do it in steps as when you see resistance, book some profit and trail rest. it gives maximum returns on the good entries.