Today we saw the Biggest rally in market after 7 years, Nifty is almost up 411 points from yesterday panic low of 6825. Traders trading without a trading plan and not having proper discipline are bound to make losses in such market, as they are unable to change the sides quickly end up being a loser. As per Stats only 5% traders are able to make money on “consistent” basis in the market in long run. So what makes trading so fascinating that only 5% traders are able to learn lets look into the reasons.
1. Most of Profitable traders will never trade for living for initial 5 years of trading, They use this time to get acquainted with all kind of market situation and learning from it . The need for steady money like getting a salary will corrupt your thinking , put you under stress and force you to deviate from your trading plan.
2. They will trade only with money they are willing to loose. They do not need the money that they loose. The enormous amounts of money that it requires to learn to trade would exceed most people’s lifetime income. What makes the number of successful traders so low is that even the few who could make it, dont have enough capital to endure the learning curve.
3. They never rely on other people opinion. With the initial learning curve they make sure to build habit of trusting the system.They do not worry what FII’s are doing,listening to blue channel experts or believe in some insider news.
4. They do not follow the crowd, and there is no pressure on them to conform or perform. They will not be boasting their trade on Social Media, that I made xxx profits.
5. They have incredible discipline to not buckle under pressure. They have a perfectly clear head and understand fully what they do and how they do it.Battle wounds and memories of defeat are more valuable to them than the money.