Typical Trader’s Story

The Practice Time (Paper Trading)

All charged up with the thought of trading and then making a kill out of it, a typical trader starts with a paper pencil approach or a demo trading a/c. Buying Nifty lots when price goes up and selling when it goes down – tried the same in USD-INR, Gold & Crude oil. Wow – “I am making some money”. Technical indicators are easy to comprehend! Everything is fine. Who says trading is difficult? That’s the way to do it. Let’s go LIVE and make some money. Yeah!

(Poor fellow didn’t feel the margin pressure when making losses & experience emotional drama as no real money was involved)

The Reality Check

All set with the charts full of indicators, poor space left for some more. Peeing in the pants while watching a trade going wrong and immediately saying: Why the hell I took it? Next time taking a bold step of getting out with some loss – only to experience that the trend changed and he would have made 50-70 points if stayed with the trade. Cursing the decision & blaming the market to be rigged. Changing indicators on an hourly basis as they don’t work, becomes a practice (every time losses occurred). Forgetting several times to setup a Stop loss and multiplying the losses becomes an unintended habit.

With low on confidence, the confused trader gets more confused by following the different forums on web and analysts on business channels for tips. But decides to follow them religiously! Cautiously, one fine day makes a trade and buys in good quantities, only to realize a day later that operator/market maker has offloaded it in a huge quantity. But till then a morning big gap down opening shatters the dream of even getting his capital back.

Most of us have faced this kind of a situation at some point in life and can relate to it. But has some one realized the real reasons behind such mistakes. Those who have – are minting money and those who haven’t – are still wondering what is wrong with their stars! They feel down and out; decide to quit – a sad end of a short trading career!

Don’t Quit – Quitters Never Win & Winners Never Quit!!

I believe that the real reasons behind these failures are technical and psychological in nature. The technical problem is the lack of knowledge in trading and basic know how of the markets along with ignorance or absence of the strict money management rules. The psychological problem is the ego problem (how I can be wrong – it will come up!).

TradingWala.com is a serious attempt in this direction where my endeavors will help traders to invest in education i.e. technical analysis, get the knowledge of the market dynamics to the fullest and devise & analyze trading strategies before plunging into trading. I believe that one should strategize the trading and practice the system hard till it makes some one confident to make a kill. And most importantly, the most neglected part of trading – money or risk management should be followed in the strictest of the manner to maximize the gains and minimize the losses. It not only keeps the emotions out but also helps in decision making process.

Come join me & start the journey to become a successful trader.

Let’s KISS - Keep ISimple & Stupid and make some money!!!

Go Back!!


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