As far as losses are concerned there are number of variables that account for the loss of an individual trader and we are about to discuss the important ones...,
Trading without knowledge
we say this very often, trading without knowledge and experience is disastrous and it will always lead to losses. why this is true...?
1. If you have no knowledge about what is happening over there in markets, then believe me you are not trading but just gambling and gambling is dependent on luck and odds play predominant role over there.
2. Without knowledge there is no room for experience and without experiences, emotions will play a major role in devastating your portfolio. (we mean fear & Greed by the way).
3.Inability to accept few losses and holding the position on jeopardy. this also involves another dimension in understanding that the narrowed mindset to accept huge gains (will be discussed later in detail... A video Lesson).
4. Trading for the thrill and not for the money
5.expecting unrealsitic gains and hopes to recover all the losses at one shot...!
6.use of unethical practices to forecast a trend.
Inefficient money management
This is very crucial factor derived from the former and the key thing is that money management including risk management is the pillars of your portfolio and if you don't have a deep concern over that your portfolio is about to vanish soon . ( be a savvy in calculating Risk & reward ratios , proper use of leverage and be very sure about the brokerage and taxes, as they contribute major proportion in long run).it is really mandatory for employing the stoploss and Take profit levels to ensure the growth of your portfolio.
Hunt for the holy grail
There is no holy grail in Trading business and please do not search for it because most of them are lured by so called few professionals... trading is a Systematic process and it should be based on working method and executed with disciplined and patience should be added to it. Apart from this there is no Holy grail. To be more Frank & real, Trading is the assesment of the best Probability and executing it. prepare Alternative plans if things doesn't go as if planned ( mentioning analysis and not the opinions).
Proper hardwork and Time allocation
What will be the hardwork in trading...? asked a genius guy,
Obviously only successful ones know what sort of hardwork is required for trading and analysing occupies more than half of the trade plan and that take all of your time and effort. For people those who do not find time for analysing, will eventually find time for worrying & frustration with the loss of money & peace..
IN THE NUTSHELL
Do not trade based on your instinct and always follow scientific principles & methods,
use MATH as much as you can,
Explore all possibilities that a market has to move and cullout the best possibilty based on the rules & guidelines
Implemet Effective money & risk management.
Finally,Do trade for profits & not losses.
To understand about the method and the inherent subdivisions of it ---> the rules & guidelines, we are here to help,
Try our Sample videos and Enroll for the ONLINE TRADING COURSES @ unbelievable prices, today to carve your bright future.