What not to do in Bull Market

India Stock market are going through a Bull phase and is the best performing market for 2017. As market keep rising every day many traders are getting attracted towards it making fast bucks. Today we are discussing the thought process of new trader and the corrective steps which traders should start implementing before their trading account goes for a toss.

• I have a few thousand , I will turn it into a lakhs quickly by trading Options”

The bigger the attempted return the higher the probability of going to zero, Options is a “ZERO” Sum game. Compounding capital over the long term is what it takes to be successful taking big risks eventually takes your account down to where it breaks you financially, emotionally, or mentally.

• I am “THE BEST” I can figure trading out all by myself.

New traders must find educational resources that shorten their learning time frame and saves them thousands of hours by not having to learn everything the hard way themselves.

• I expect to be profitable from the very beginning.

Like any other professional endeavor you have to pay our tuition for education and pay your dues. The odds that you will be profitable right from the start is minimal to zero, not blowing up your account as a new trader is an accomplishment to be proud of.

•   I expect to make huge profits my first year trading.

Think practically if it was so easy to make money why people are doing other business, there is no easy money laying around on the street for us to just go pick up.

• I can trade huge position sizes and never blow out my account or suffer a huge draw down.

The math disagrees agrees with you, big trades eventually lead to big losses and big enough trades eventually lead to ruin.

• I want to trade for a living, it will be great.

Trading for a living is very stressful if not planned very carefully with huge savings and safety nets. For most people it would take multiple six figure trading accounts or even up to a million to even consider such a thing with their current lifestyle expenses. Very few traders live off trading alone almost all have other sources of income and trade for capital appreciation not their monthly bills.

• I will just trade with all my savings and salary and take it out when needed to pay monthly expenses.

Trading capital has to be separate from living expenses and only taken from at times that will not effect your need to pay bills or play catch up with returns.