Hi to all,
just wanted to ask a very simple question and a real problem faced by me many times.
In many trading sessions i use to earn 1000-2000. It happened for cont 8-10 trading sessions, but after that i started facing a problem like, i started thinking k when in 2 hrs of trading i can earn 2k, then why to waste my whole day, the same thing i can do for the remaining trading session and lets earn additional rs 500-1000. And when i started doing this definately i loose the earned profit also and day closes with a loss.
Why i dont know as im doing trading in same style as doing at time of earing 1000-2000.
2nd i want to know is earning 1000-2000 a day is good for a full time trader??
What I understand through my experience is that Trading is not just about returns. It is more about risk management.
Please do not compare it to a fixed bank deposit, like "If you invest, Rs. 1000 at 10% per year, then you make Rs. 100 for the year and, so, if you invest Rs. 5000 per year......". This type of formula does not work for trading.
Now, again do not compare to your job, like "If you work for 8 hours, you make Rs. 2000 and, now if you work 10 hours......". This type of formula again does not work for trading.
Understand trading is a different animal. But, unfortunately most of us measure trading with parameters designed for time based deposits or time based work hours etc.
Trading is risk based. We need to look at it from a different perspective like say.... The title to this thread must have been like: "Are you willing to risk a loss of Rs. 2000 daily?: or "Are you willing to risk a loss of 5% per day/week?" etc.