Everyone in the stock market and people who do not know anything about the stock market tell us that trading is hard. The million dollar question however is – Is it really hard?
It is indeed very hard to be profitable, but not impossible. I have been trying to get my head around the markets and how things work for more than a month now. I have read countless articles and several books about the equity market, commodity market, futures and options market and even though I have a vague idea of how things work, I am still not profitable. Even though I have read about a lot of strategies and insights on price action, volatility, volume and what not, I am still not profitable.
One of the main reasons for that is, I believe, my trading psyche is very emotional and greedy when it comes to booking profits or accepting losses. One of the main mistakes I do is whenever I see a little profits in my account, I wait in hope of it getting bigger and better. But more often than not, it goes the other way round and I end up booking a loss because I am scared to lose more money.
The most I have lost in a single day is a whooping 600 rupees which amounts to 15% of my trading capital. Yes, I blew up 15 percent of my capital in one day. But that’s alright because if I had gone out partying with friends, I would spend double that in a day or ten times that in a month considering my amazing food habits thanks to Dominos Pizza.
I hate Pizza now because every time I think of ordering a double cheese margherata with cheese burst crust and extra cheese toppings paired with a chicken parcel and a chilled bottle of coke, I think of losing that money in the stock market for good measure. Because Pizza makes you fat, trading gives you life skills. Poor trading will break you apart, put you through ups and downs 10 times in a week making you realize that your last breakup was a cakewalk compared to trading emotions and the prospect of losing money.
The idea is to get so disciplined at trading that it seems like a boring activity. Real profitable trading is actually said to be very boring (not that i know, I’m still crying over my losses). Amateur traders like me and my colleague go through a roller coaster of emotions when trading, I only hope professional traders are a lot more calmer than us.
If your life is boring, monotonous and sad, if you crave for drama, adventure and sometimes want to kill your trading terminal because it hangs when you want to place a critical buy order! Fear not, trading is here and opening a demat account will make your life very interesting.
Seriously though, if you wish to start trading and you are a complete beginner, I would suggest opening an account with zerodha (apparently the best discount brokerage in the country; they are pretty good when compared to others). Refer Varsity for everything there is to know about the markets, and if you want a fellow trader for moral support hit me up and we will get over this together!
Here is a link to my daily P&L statement.
They say trading is hard, is it though? Well, we ought to find out. 🙂