Following are the lessons I learnt the hard way. These are the things I want to keep in my mind while trading:
- There is no holy grail. Period.
- Never borrow money to trade.
- No broker is there to make you rich.
- Learn Compounding - A 100% Profit in 3 months is better than 1200% Profit in 3 Yrs.
- Losses are due to our own FOLLY. Take responsibility. Decision to pull the trigger for every trade is yours. Hence, never blame anyone (tipsters). Blame game never got anyone anywhere.
- Cut the losses immediately when the reason/reasons you entered a trade do not exist anymore.
- Markets will always remain uncertain, live with it. Stay away from people who say that particular scrip will go to level ‘X’ in certain period of time for sure. Or when you hear words like 100%, 110% or ‘I can give you in writing...’ you know that someone without knowledge is in action.These people don’t know that they don’t know! How can anyone be SURE?
- Don’t be a compulsive trader. Trade only as per the plan AND when risk: reward ratio is favorable. Markets are ocean of opportunities, there will always be another day. Markets are here to stay. Game will always be the same only the players and pockets will change.
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