Make sure that as a trader you do not get into undisciplined trading as it is a sure shot panacea to getting losses in the market. We present here 54 checks for you to undertake to come to a conclusion that whether you have been indulging in any of the undisciplined trading tendencies and same are as enumerated below:
- Do you plan all together aspects of the trade before you decide to hit the sell or purchase button? This implies knowing where you might enter the trade, exit by using a small loss, and exit by using a larger gain. If you happen to don't understand all together aspects of the trade in advance, you are performing it wrong. When you find there "isn't sufficient time to figure those out, because it's moving now!" you missed the excellent entry. Have you been buying after several large green candles, or selling after several large red candles? You happen to be late to that particular trade, and should be disciplined to allow for the next one!
- Will you leave your stop loss alone, never moving it in the wrong direction? Meaning, if you happen to planned to have a Rs 3 stop loss, will you take it to 4 or 5 Rupees to stay in a trade that may be going against you? This is often altering your original plan, and one of the most worrying biggest mistakes that non-disciplined traders make.
- Will you increase the position in a losing trade? This can be commonly called averaging down. Additionally it is called throwing good money after bad. An exceptionally famous and successful trader uses a sign over his desk that reads "Losers Average Losers."
- Just like above listed points, will you start a trade being a short-term trade, then commit to hold it being an "investment" since it isn't figuring out? I actually had a student once who said, "I have never taken a loss in months!" Seems like he ought to be doing great, right? So, without a doubt, I asked what he had in his account. It was entirely margined out on stocks which he was losing money on. He hadn't taken his small losses, and was now "stuck" countless losing trades owing to it.
Do undertake disciplined trading with the help of an expert, guide or a mentor and do keep a diary for record keeping of your trades.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
