Lose Money in Stock Market
Why traders lose money in stock markets???
- 02-27-2010
- 249
Why Traders Loose Money in Stocks Markets?
Loosing Money in markets
Hi All,
I have seen so many complaints about many advisory services. Everyone is complaining about losses.
Here are the small basic info if you wish to trade / invest in financial markets.
1) Don't forget that market belongs to no one -
2) You are competing with the best resources of world in terms of mind power and money power.
3) Break of support and Break of Resistance mostly does not mean a Breakdown or a Breakout.
4) Stoplosses may be too near the support/resistance or may be the support/resistance itself.
5) In sideways markets securities tend to test the support and resistance before deciding to change direction.
6) Trading in futures employs huge capital - someone who does not have a capacity to pay 40% as m2m should not even think of entering the futures markets.
7) Greed - Fear cannot be overcome completely they are base of human emotions however with disciplined positions the trader will feel comfortable with the trade maximum losses happen because of over leverage.
8) The analyst is a human being - he too will make mistakes - bear with him - don't press him for a stock of your choice, he may not have tracked that.
9) Stay clam - have patience - have some tool available to yourself as well so you can see where the stock is question is going.
10) Stop hopping from one analyst to another analyst - everyone has their own trading styles.
Now a small advice to the analysts.
Use your system not your brain.
Company: Lose Money in Stock Market
Country: India