Posts

Showing posts with the label profits

Emotions Vs. Logic Stock Market Trading.

Image
 Why do most of the traders fail to make money? Can a 12th pass candidate earns millions from the stock market...   Emotions play a very crucial role in trading in the stock market. I have observed that many times a well educated person (i.e. Technical Analyst) fails to make money and a common person who knows nothing about it but basics does wonder.  How does it happen? See, Stock Market is filled with the numerous of brains which comprises of several major emotions which every human being does carry i.e. Fear, Greed, Anger and Hope. And these emotions have no link with the education qualification of any person. A highly graduated masters degree holder or a normal graduated person both can have these emotions. Major winner will always be the person who will manage their emotions, not the one who is more qualified. Briefly understand how the market works, Whether you agree or not but it is true, Market is moved by market makers (20% people have la...

How does professional trader trade in the market? Professional Trading ! Risk Management

Risk management vs Accuracy (luck)   Why risk management overrule above all trading strategies??? Why does risk management overrule all charts, patterns and indicators in the stock market??? What risk management actually is??? How does it apply in live trading???   So many questions are there…and the answer is- Mindset > Strategy ! "Market rewards you only when, you stick to your logic..even if market is against to you"     Let's understand with my practical experience.. I was trading in market on the basis of my trading style ( it can be any style how you trade in the market ). I preferred to take only those trades where my Stop Loss and Target Price ratio would be 1:3 First Scenario (Risk Management) Trade 1: - 1,000 Trade 2: - 500 Trade 3: - 300 Trade 4: - 200 Trade 5: + 2,500 In this scenario I earned +500 pts Here my accuracy was 20% (unlucky) still I earned +500 pts. Second scenario (No Risk Management) Trade 1: +700 Tra...