Thursday, December 16, 2010

Surviving in the Trading Jungle !

Why Do So Many Smart People Fail in Trading ?   

Here is a secret ! In fact it is not a secret ! Majority of traders make losses. Among investors too, most make less than the average returns made by investing in an index like Nifty or BSE Sensex.  But not many people talk about it in the open. But why ? Everybody likes the winners, OK ?  We always hear about the super profits !   And no one talks about the losses. 

The first reason for major losses is the over confidence in one's trading ability. Another reason is the absence of trading discipline and stop losses. However, the most important reason for a  blow up or total ruin of the trading account is relatively huge trading ( leveraged ) positions.  Here is an article on how to prevent the total blowup of your trading account !  It may not make you a super trader overnight. But it will certainly help you to last longer in the trading game till you learn the trade !!

Happy reading over the long week end !

Click Here to Read the article on Preservation of Trading Capital, Money Management and Position Limiting

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