Problem :
1. You know that risk is only 1 lakh and you can afford to loose, but still you are scared coz it is ur hard earned money.
2. You don't have a sure methods. This could mean that you will randomly make money and randomly loose too. Final outcome would be only Big Loss.
3. Risk averse by nature. This is not suited for traders. Every trade that you take is nothing but a the risk (of amount dt is ur stop loss)
Solution :
1. Must a plan/methods. If you are not willing to learn methods, then it's like shooting in the dark and dreaming of winning Olympic Gold Medal. Not going to happen !! So there is basically a lot to do.. learn methods, back test them to feel confident that they do work and then practice with small capital. This will help you get over with ur worries of loosing coz you know u hv a winning system. Remember this won't happen in days or months.. but only if you are ready to give time.
2. If you are starting from scratch, forget that 1 lakh. For all you know you might end up with more losses. Why ? Because it's a practice session.. where things can go out of control..and u are bound to loose. That is why plan it better. Be ready and accept the losses.. if you can't then better don't do it. Even a small restaurant business takes about 3-4 years to break even.. you can't expect trading to be consistently profitable from 1st month itself.
3. Being risk averse in nature is the biggest enemy for we traders. We human are defensive by nature.. our body and mind defends us from anything harmful/hurtful. The only way to get over this is to train your mind to be able to take losses. This will happen only when you know very well that the methods/systems you trade will give you profit in long run despite having few losses. But if you don't hv sure method then obviously you dnt know whether long run is profitable or not.
Bottomline:
Trading is like learning a music instrument..like becoming a painter, doctor or engineer. You can't listen to Pink Floyd for 1 month, learn to play some chords on guitar and hit the stage to perform a rock concert. Similar things with other professions too. U hv to treat Trading like any other business. Plan well.. understand what it takes and then do it !! I will, no doubt, will take time, effort and money.
These things have been repeatedly said by some very very experienced traders in this forum. If we want to be successful traders, we hv to embrace it.!
