It depends on you, More importantthing in trading is when we exit our trade. We have to book profit quickly and we have exit with small loss before it becomes huge loss. Our emotions are very dangerous. Always remember stock market is not one day business. U have to made daily small profits consistently for few months. Not one day not one week. Practice this for one year. First control your losses. Look what is ur mistakes. Don’t repeat that mistakes again. Don’t be greedy. I’m also not 100% perfect but above all my experiences.
The following copy pasted from the web: Link is given at the end
4 steps to become a legendary trader!
While reading Gurcharan Das's masterpiece
"The Difficulty of Being Good" (Penguin Books)
I have been reminded of a beautiful life philosophy we read in school only to forget on reaching the college!
This may sound old-fashioned
but is a fine life-technology
written by a great mind,
in his immortal treatise, Manu-Smriti.
As prescribed by the great sage, the human life span is divided into four stages known as ‘ashrams’ (shelter).
The Vedas define a specific purpose for each ashram and offer specific instructions to be followed in each ashram.
I. The first ashram, Brahmacharya, is the student phase of life when the person is supposed to immerse himself or herself to learn the art of life and that of making a living.
II. The second ashram, Grahasta (meaning householder) ashram is the stage of family life. It constitutes raising a family, earning a living through the skills acquired during Brahmacharya ashram. It encourages the enjoyment of material life.
III. The third ashram, Vanaprastha (Retreat to Forest) indicates living in a withdrawn manner. People in this ashram play the role of mentors.
IV. The final stage is Sanyasa or renunciation. The person wthdraws from society to spend the remaining part of his or her life in meditation and solitude.
I found it interesting as well as scary!
Scary because of seeming impossible implementation of ashrams in today's social setup.
Interestingly, i found it very useful for anyone who wants to prepare for trading.
Brahmacharya = Student phase to learn trading and technical analyses, refraining from trading!
True to expectations - this "Brahmacharya" is impossible for the debonair traders!
Grahasta = Making-a-living-by-trading phase
True to anticipation, ill-trained traders (who skipped the first ashram) fail in this stage except 'enjoying the material life' at the expense of the principal amount!
Vanaprastha = Retreat to forest (of investing)
This stage never comes! One can't be a good mentor if he hasn't been a good student!
Sanyasa = True to the Inevitability, the dejected and rejected non-trader gets ejected from the market to spend his or her remaining life in meditation and solitude.
Strangely, this lost trader takes up the Brahmacharya (student phase) after the pain and humiliation of the Sanyasa!
In this second innings, Grahasta phase (making a living and enjoying the worldly pleasures) comes but with the spirit of Vanaprastha, courtesy the bitter experience of the first innings!
The whole write up is copied from :
All credit go to the author.
Being consistently profitable is a far cry.
The technique is in averaging your small losses with greater profits.
For this to work you need an constant supply of capital.
Just analyze this screenshot below:
This trader has a 340% return on capital with trading record available from 2013 with a average capital of 2.4lacs.
Makes a loss of 4.50lacs in the previous week on 2 consecutive days twice the amount of average capital.
Yet will continue to trade and average on these huge losses with an constant addition of capital.