Have you ever wondered why do most of the traders fail? Inspite of having a good strategy, it gives them losses?

The reason is lack of self discipline. You need to understand trading is a game of probabilities. Sometimes  you win, sometimes you lose provided you have a decent strategy.

When you win a trade, you are on top of the world and you feel no can beat me in this game. But when you lose, you start to lose confidence and you feel like why is this only happening to me.

If you have backtested your strategy, then you need to stick to your trading plan for at least 100 trades. You need to follow your rules of the strategy. You need to let law of large numbers to work in favor of your trades. Most of the traders stop following the strategy after they face a series of losing streaks. Once they stop, then strategy starts giving profits and then they think to themselves that Market is specifically against them. No, Market is not against you. You just did not follow your strategy.

Whenever you backtest any strategy, look for the series of losses you face. This way you will be comfortable in absorbing losses when you go live.

Do not risk more than you can afford. Know before entering in a trade how much you are willing to lose  and then enter your position.

Risk that much amount which you can survive for 100 trades.

If you entered the position planning it to be an intraday trade, then don’t turn it into a positional swing trade once you start seeing a loss. It can seriously damage your account.

Have realistic expectations about your trading goals. Traders want to double their capital in a month. Understand that it’s just not possible. You should aim for consistent returns and try to compound it. Just calculate even if you can achieve 3-4% in a month and compound that see how much wealth you will generate in 3-5 years.

Observe the market daily even if you are not trading that day. Do a post market analysis and try to understand why did the market fall, rise or stayed flat on a particular day.

Give time to learn and market can reward you exponentially. Happy Trading!

Disclaimer: Please note that the views presented above are my own personal opinion. Understand the risk involved in Trading and investing. Please do your due diligence and consult your financial advisor before investing or trading in the financial markets.