With the Kind of Fall we saw in World Market Many novice trader have difficulty facing a cold, hard fact about the stock market: You can’t get rich overnight. You can imagine i can buy Deep OTM PE and can hold and make a fortune, But In reality most of the traders tend to lose money instead of making a fortune.
Professional Traders know this fact that big money cannot be made overnight. They expect to make big profits in the long run, but they focus on making as many reasonable profitable trades as possible. They do not focus on a single, life-changing trade. As no indicator or trading system in the world can tell you what would be the outcome of a trade. You just need to stick to your system and let market prove you right or wrong.
Most of new traders are initially drawn to market with the hopes of making big profits… Quickly! You will see lot of traders showing money that could have been made in shorting Indusind Bank from 1100-300 in 15 trading session.
However it is dangerous to approach trading in the financial markets from this perspective. It directly contradicts the fact that it’s going to take some time before one makes enough money to support a new lifestyle or to impress others.
Why its dangerous to go by approach of Hitting Overnight Jackpot
- You may take riskier trades with the hope of being lucky enough to triple your capital.
- You may be tempted to ignore from your trading strategy because you are “certain” of a Big winner, You will try to second guess the trade outcome. This is the first step to disaster for any trader, whether a novice or experienced professional.
- You may even abandon your risk and money management rules because you may start to think, “Unless I can make some big money fast, trading isn’t worth it anyway.”
Someday you may very well be wealthy and have an exciting lifestyle, but it isn’t going to happen tomorrow, or in the next year.
Sticking With A Strategy
For now, just focus on the process of sticking with the strategy through good times as well as bad times. Recognize that this is a process that takes years to complete. No one creates instant wealth from trading.
You must stand the test of time to succeed. When you take this perspective, you will be satisfied over time and realize that you are among the select few traders who have found the path to profits.
Key to Successful trading is realistic goals, discipline and a good trading strategy are the only things that will help you become a consistently profitable trader.