5 Signs You're A Terrible Trader | STOP DOING THIS!!!

DOING THIS is keeping you from being a successful trader.
5 Things you need to stop doing as a Trader in order to be profitable,
This video covers the 5 most common mistakes a Trader makes!

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This is a video on 5 things you need to stop doing as a trader in stock market, work on these points and you'll definitely become a better trader,
This video indirectly shows you how to be a profitable trader!

Time Stamp -
0:00 Intro
0:28 1st Point
1:56 Telegram
2:13 2nd Point
3:13 3rd Point
3:58 4th Point
4:59 5th Point

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Transcript -

5 signs you're messing up

1. You always keep changing your strategy - Have you heard of the story where a person digging for treasure quits just before find the diamonds.
That happened to me. In my early days of trading, I kept swapping between trading strategies and every time I did that I kept loosing money.

And finally once I tried a strategy for 2 weeks and everyday in those 2 weeks I had continuous losses, It's a well known strategy, I had also backtested it for years and it had a win rate of 50%, Then why was a loosing .. Is it cause the market condition was bad, Or was it just my luck? Who could say.. But it doesn't matter. I had quit using that strategy.

Now what blew my mind was when I went back to observe what was happing with that strategy. The next week every single day had beautiful opportunities with continuous winning trades which if I would have continued would have not only covered my 2 weeks of losses. But it would have given me double of what I had lost earlier.

That's when I realised 90% of people quit just before reaching success and why do they do that is cause if they see someone else's strategy is doing amazing on one particular day, they switch their strategy and quit their winning strategy just when they were about to make a big win.

2. Not following risk management - It's as simple as this, If you use a simple 3:1 Risk to reward ratio and you get a win rate of just 30% You would still. be profitable. That means out of 10 times if you lose 7 times you would still be profitable. Actually you don't even need 30%, even if you get 26% win-rate you are still profitable, Anything lesser than 26% you would be losing money.

Not that we have defined how important A risk to reward is, We need add just one more tiny rule.

Never agree to loose more than 1% of your capital per trade.
If you have 1 lakh rupees to trade, That means your stop loss cannot exceed 1000. This doesn't mean you should put an extremely tight stop loss, What it means is you should reduce the size of your trades.

3. always trying to predict the market - Nobody knows where the market is going, Trust me what I say this, Not even warren Buffet, Not even Bill Gates and Definitely not Elon Musk.

Now as a trader we follow the rule of Buy low and sell high ... But how do you know where the low is cause you can't predict the market... Again how do you know where the high, Cause you can't predict the market.

Which is why Don't predict ... Don't listen to someone saying I'm an economist or the biggest hedge fund manager in the world, I can tell you where the low might be .. Bullshit, No one can predict that.

You enter as per your strategy and exit as per your strategy.

4. Trading based on news or tips - Let me tell you something about people who give tips or any news channel that gives tips.

The only reason they give Tips is cause they have purchased the stock way earlier and is now trying to hype up the price by giving tips just so that just can exit as soon it rise and leave you stranded and trapped as soon as they exit.

Now let me tell you about those who blindly follow Rakesh Jhunjhunwala,

You get to see his trades only quarter yearly when SEBI declares it to the public which is mandatory to be shown to the public for any big trades exceeding 1% of the company's market capital.

And Mr. Jhunjhunwala is aware that public can see his trades, every quarter yearly, so he carefully times his trade so that he gets the most benefit out of it and those who follow blindly eventually gets trapped.

5. Keeping a mental stop loss - Many, many many trader do not keep an actual stop loss, What they do is they keep a mental stop loss and when the price strikes the point that was supposed to be the stop loss, they try and exit but they mostly fail.

I'm telling you, The day you start placing actual stop losses for all your trades, no exception ... That's the day you mature as a trader!