Trading is very lucrative because of its low entry barriers like:
- Anyone can open a trading account easily most of people are able to Open Freely
- You can start trading with low capital of Rs 500
- You can trade from anywhere using Laptop or a Mobile.
- High Leverage on Small Capital can make big money and can Blow off the trading account.
But if any business has low entry barriers then there will be huge competition among the participants. This is true in intraday trading. Just 5% people know what it takes to be a successful intraday trader and among them only 1–2% people can literally mint money out of intraday trading. Trading is as difficult as playing football like Lionel Messi or running a successful business like Mukesh Ambani. For an individual with limited capital and No Knowledge it takes immense hard work to be able to get money out of these markets.
Today I am Sharing a Case Study on One of My Student during our 1×1 Coaching How we undestood his Trading problem and have to ask Him to Quit Trading. I decided to highlight these specifically, as I’ve found there are a number of common themes amongst struggling traders who I’ve worked with. Hopefully, by detailing their challenges and offering some action points, you too can take something away from this article to help you Decide Do you want to continue Trading or Want to QUIT.
Bhavik is a Hard Core Intraday Trader and has been trading from alst 5 years but his results have been Highly inconsistent and all the 5 Years have gone negative. He came to me discuss his trading poroblem and How he can improve his trading. We did our analysis on his trades and personality and this is what we found.
Bhavik was having an Adventurer personality, He always craved for action be it in Normal Life or In Trading. He loved fast-moving stocks that would have big move both on upside or downside.So His best performance would come on Days when market are highly voaltile, He made a Killing during March and April 2020, His profits were beyond what you see in Social Media. But when the markets were the way they are normally—selectively volatile,doing time correction filled with fake breakdowns, and fake breakouts—Bhavik used to lose awful lot of money. Almost more money than he made when the markets were volatile.
I liked the way he used to Trade, I moved my schedule around to work/Trade with him personally. I did everything I could to help. We created the Plan for the next day, I shared with him the Rules I follow day in day out . I made sure I pointed out good trades to improve his confidence and offer an idea of the best trades for that particular time period.
But this was just not enough. The market demands more. He just wasn’t a disciplined person. For example, When he has good day he liked to stay up late at night,Party with his Friends and When he had a bad day he will keep watching US Markets late night, He was not getting the rest necessary to be alert during the next trading day. I know this seems like a small matter, but stuff
like this screams, “I am not disciplined.” And the market will respond, “Not in my house, Bhavik . Next!”
We observed atleast 2 days in a week he will not be ready by 9 AM and do the mental excercises which are required before the start of trading which again may not seem crucial, but it is. It’s a testament to how disciplined you will be during the trading day. If Bhavik couldn’t discipline himself to come in on time, then how could he discipline himself not to jump into trades that did not offer him an excellent risk/reward? He couldn’t.
You can’t try to be a disciplined trader. You must be a disciplined person to be a disciplined trader. Trading is a reflection of your personal Life.A Trader cannot become a profitable trader until he becomes a more disciplined person.
Bhavik Lacked Discipline he was Very good in making money in VOlatile and fast moving market but when market trend changed he was unable to control the urge to stop trading. We tried lot of things but he was not Disciplined and we have to take the Hard Decision to let him know He was not Fit for trading. He also understood his problem and he decided NOT TO TRADE as 5 years of efforts he was net negative. He made big money lost big but net to net was in BIG LOSS. These Loss and STRESS were affecting his Health and Personal Life also.
Knowing when to STOP is also very important. Bhavik is now concetrating on His Business and Investing in Blue Chip Stocks. He is become more Clamer and seen a very good improvement in his Health andn personal life.
Many Readers would have gone/going through similar expercience. There is very thin line between PASSION/OBSESSION. Nver be an OBSESSED Trader, If its not working and you are not DISCIPLINED no way you can succed in trading. There is no SHAME in Quitting use than time and energy in things which will yield better results and also keep you healthy
I will end with this simple suggestion. One way to keep a better sense of discipline is through vigorous exercise. A healthy body leads to a healthier and disciplined mind.
Below are few more Case Studies we have shared, Go Through them and Improve your Trading