Trading Warriers #1 : 9 Miseries every trader in stocks market faces!

in #trading7 years ago

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I have been a trader in stocks market for last 3 years. I usually do Intraday and Positional trades in Equity, Commodity and Currency.

When I was new to trading I faced the same problems working in Stocks Market and today I want to share my experience and knowledge which I have gained working in this market.

A person enters in this market and initially he gains some profits. But after some investing in market most people lose big money. I am also one of those who get some quick bucks in starting but as time passed my trades started losing money.

There were some problems faced by me at that time when I used to think that why all this is happening to me only. But with the passage of time, I came to know that every trader in Stocks Market faces same challenges which I called miseries in title.

Although this happens with everyone who trades in Stocks Market but people feels that this is happening only with him. When he sit on screen to trade, feels that is something wrong with him or he is not lucky enough or etc.
And with experience and education I found that what the reasons were behind them and how to come off them. So I am sharing what I used to face in everyday trading when I was novice too and these things happens to everyone in this market.

#1. ”When I buy any share, it falls and when I sell that stock it start to increase”

This is the problem of mostly novice traders and every trader in starting is novice, so this happens with everyone.
It is like this ,” I bought a share which was constantly increasing in price, I bought it, and as I bought it, it stood still or started to fall, but when I sold the same stock after some time, it again started to increase.

So the man (trader) thinks, “what is this happening with me! Is there someone in the market who is watching my trading, is there any camera behind me who is watching what I am doing, or the computer is reading my trader so that when I buy it start to fell and when I sell it starts to increase. Who is that fellow that is running behind me to make me lose and why is this happening only with me”.

This happens not only with you or me but with everyone. There is no one reading our mind or watching us trade or computer reading our trades, but this is the method of working of Market. This market works in its own way.
There is something that we don’t know about the market and when we know that thing this will not happen to us.

#2. “When I get profit, I get it very small but I get loss, I get it big” :

Friends this also happens with everyone. When I started trading, I earned profits small by small, but when my trade decision went wrong, it wiped out all my profits. This happen because when we get small loss we start to recover it do further loss and this cycle repeats until we get a big loss. Most of the trader in stocks market knows this and most traders who quits stock market after some time only because of this reason. There is something that we don’t know about market, friends. There is some system that we don’t know.

#3. “All the stocks are gaining, but my stock is not gaining or decreasing or standing still” :

“When I buys any stock out of many gaining stock, the stock that I buys immediately stops or stands still. The stock which I don’t buy still remains gaining. And when I sell that stock and buy another, the same that I sold starts to increase and that I bought stands still. The stock or share that I neglected will be gaining and when I buy that stock, it will stands still or start losing. What is this happening with me? Why is this happening only with me?”

Friends this happens with every one that is why people call it gambling. The market is very smart. The smart people or smart money know well about retail investers that what will they do and when they will do this. This is the way market works we can’t blame anyone.

#4. “When I believe any News I am proved wrong, and when I neglect News then also I am proved wrong” :

People says like this, “ When I don’t believe the any news about any stock, I lose because then I could have got the profit, but next time when the same news comes, then also I lose because my stock don’t perform as expected.
A company announced bonus and the share went up but I didn’t bought stock because I didn’t believe. Next time another company announced bonus, and I bought but share fell.

Next time a same type of news came and I didn’t buy, the share went up 15 percent. What should I do! Which news I believe which news I not believe. How the stocks knows that I am buying that stock or selling. What should I do?”!
This also happens with most traders. This happens because you don’t know how the market will react to the news. How will it take it and how the particular stock will behave and how to analyze the news. But smart money is very smart. It know beforehand what will happen when?

#5. “When there comes a big fall in market, you are completed invested with all your money in market” :

Again we can say that this is the way market works. When there is bull run or continued gain in market, everyone is investing in. The market creates a euphoria so that everyone get invested. There is an atmosphere of positivity all around you and that makes you feel secure to invest because everyone is saying that market will go up always. So people get invested all their money due to positive euphoria created by market or smart investors or smart money.
Until you don’t invest all your money, the big correction will not come. That is the system of market. We can’t change it but only follow it.

Okay friends I stop here because I thinks that post is becoming too long. I will post other 4 in my next post.

I am open to your opinions.

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I subscribe to these facts that the every trader in stock market face these difficulties and I also faced these and still having trouble.

Market is not easy to play with.

please post other miseries as soon as possible so that we can we what are they.

post how can we avoid these mistakes.