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The story begins in March 2022
When I had limited knowledge about the stock market. I knew that people invested in it and could earn good returns in the long term. A friend introduced me to investing in penny stocks, so I invested around 2,000–3,000 rupees in them. Initially, I was pleased to see a small profit, but eventually, I lost all my money. This setback prompted me to start researching on YouTube, where I came across videos of individuals making significant profits from the stock market on a daily basis. Intrigued, I began learning about intraday trading and gradually gained knowledge about candlesticks, chart patterns, and support and resistance levels.
Armed with these newfound concepts, I believed that trading was quite easy. I decided to open a demat account, deposited some money, and started real trading. At first, I made small profits, which filled me with joy. I thought that by increasing my capital, my profits would also increase. With expanded capital, I started generating better profits. Subsequently, I discovered options trading, which quickly became a profitable venture for me. Seeing these results, I started calculating potential daily earnings and envisioned accumulating significant wealth.
Unfortunately, after a week, I experienced a loss that not only wiped out my previous earnings but also ate into a portion of my capital. It was a disheartening experience.
Determined to find a solution, I delved into research and experimented with various strategies and indicators, but losses persisted. It occurred to me that if I followed the same knowledge that everyone else possessed, I would not be able to achieve consistent profitability. I realized that there must be some undisclosed secrets held by successful traders, that they were unwilling to share. I understood the need to take a different approach, so I discontinued watching videos of traders who appeared to be making money effortlessly. Instead, I decided to conduct my own chart analysis. During the initial phase, I dedicated almost 15 hours a day to analyzing charts. After approximately four months, I managed to uncover some secrets. I realized that trading is heavily influenced by psychology and that traps are set for traders. To succeed in trading, I had to go against the prevailing market sentiment.
It seemed that luck was on my side as, within four months, I acquired a comprehensive understanding of how the market operates and how operators functioned. Filled with enthusiasm, I believed that wealth would soon be within my grasp. I developed my own setup based on my system and began implementing it. Initially, I consistently made profits from the stock market, which delighted me. However, whenever I encountered losses, all my hard-earned profits vanished. This made me question the effectiveness of my strategy, prompting me to make further adjustments. Gradually, I refined my strategy, enabling me to generate profits consistently. Nevertheless, any subsequent losses continued to erode my previously accumulated profits. This cycle of gaining and losing persisted for about six months, leading me to immense frustration. Eventually, I came to the realization that all my efforts were in vain. I understood that the most critical aspects of the stock market are risk management and money management.
I learned that trading is essentially a battle with oneself, not with the market. Overtrading, revenge trading, and succumbing to FOMO (Fear of Missing Out) trades can have detrimental effects on traders. Even if traders possess knowledge about these pitfalls, their lack of self-control becomes the primary reason for losses. They may have a profitable strategy, but their inability to accept losses often drives them towards revenge trading, exacerbating their losses. This destructive behavior negatively impacts their psychology and impedes their path to becoming profitable traders.
It has been over a year since I ventured into trading, and I have made significant progress. I have acquired a deep understanding of how the stock market operates and how operators trap unsuspecting individuals. Furthermore, I have honed and simplified my trading strategy. As time went on, I came to recognize the paramount importance of discipline and emotional control in trading. Mastering risk management is crucial for achieving success. Once you learn to embrace losses with composure and consistently adhere to this mindset, you will find success in trading. There are no shortcuts or hidden secrets. It is important to remember that the market is ever-present, but our capital is finite. Embracing this concept and safeguarding our capital is essential for sustained trading. Surviving in the market entails accumulating experience and navigating through various market conditions, ultimately leading to becoming a profitable trader.
Finally, I would like to emphasize the importance of learning to accept losses before pursuing profits. Set a daily loss limit and adhere to it strictly. If you reach that limit, cease trading for the day and resume the following day. Never entertain the idea of recovering losses within the same day. Gradually cultivate this habit, and I assure you that you will become a profitable trader. There is significant potential for wealth in trading, and we have the ability to effectively compound our capital. Trading is inherently simple, but our mistakes and lack of self-control make it challenging. Therefore, starting today, recognize the significance of risk management and make it a priority to master it.
Thank you!
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