Profit and Loss is the part of trading. All days are not good but with proper rules you can minimise loss and make more profits. StockMony team has worked to make people understand that loss while trading can be recovered and more profits can be made.
- Loss in Stock Market
- Why Losses
- Profit in Stock Market
- Things to remember
Loss in stock market
Firstly, I’ll tell the definition of Loss is the result of our mistakes. There is no bad luck or bad day. We takes positions without having knowledge or due to having faith on some broker.
Secondly, If your calculation is perfect then no one can beat your accuracy. At least there will be no loss ever.
Imagine why would someone ask you to keep the StopLoss of 30 points when the profit expected by him is not even 20 points.
Many people I have encountered facing losses like hell. We then come across articles which describes the story of suicide. Yes, many people left us due to which trading is not considered as a good career in India.
I have seen people making losses in lakhs. It is not easy to face loss of Rs 100 by us but imagine the condition of person who makes such huge loss.
2. Why Losses occur
First and foremost the main reason of loss is your own weakness of being lazy and not doing own research.
Often people do trading along with their job and forget to put StopLoss. That can lead to heavy loss and the capital that you have can vanish like wind. There is no word called ‘luck’ in stock market.
3. How to make Profit in Stock Market
Where there is loss, there is profit too. Many people have made profit in millions and billions. There is no limit to profit and loss. StopLoss can restrict the loss to certain limit, whereas proper targets can fetch you more and more money.
4. Things to remember
- Learn from the market
- Put StopLoss every-time
- Do not invest If you are unsure
- Do not get trapped by operators as many candles can be fake candles
- Do not trade to recover loss.
RULE #1 : Never loose money
Rule #2 : Never forget Rule #1
– WARREN BUFFET