In my last 17 years of experience of the stock market I have seen many ups and downs. I have started my journey in the stock market as a swing trader way back in 2000. After that I have seen the big bull run of 2003-2007, then I saw the bear market crash of 2008, once again a bull run of 2009, choppy sideways phase of 2010-2011 and again a bull run in 2016-2017. In my 17 years I have seen most traders fail and they blame on the market, their broker, their tips provider, their charting tool. But the failure can be avoided if someone avoid repeating same mistakes.
Top 2 Reasons Why Most Traders Fail:
Mistake No. 1: Taking market too easy. I have seen many traders come to me and asks by when he can start earning Rs. 5000 profits per day. They did not understand it takes hardwork from any profession for serious income. How can one think of serious income when he is so casual?
Remedy To Avoid Repeating Same Mistakes: Just think of a doctor, how many days study and practice makes a successful doctor. In your initial years dont run after profit, rather concentrate on knowledge, try to protect your capital only.
Mistake No. 2: Booking small profits and taking bigger losses. I have seen losing traders try to protect their initial stop loss. They always fear that if after a small rise if they dont book profit their initial stop loss will hit. So they book 50 paisa profit against a 3 rupees stop loss.
Remedy To Avoid Repeating Same Mistakes: Try bracket orders. Here your target and stop loss will be fixed in terminal and very little chance of your mind getting involved. If your broker does not give you facilities of bracket order consider switching to ZERODHA by clicking HERE.
So though we know most traders fail, we can eventually make purselves consistently profitable in trading by not following the failed trader’s path.