YES! You heard it right.
STOCK MARKET is for "YOU".
Do you know how people lose money in stock market?
The main basic reasons for losses is
These are the major 5 reasons for people losing the money in stock market
Above all these reasons, why am I sure that stock market is for “YOU”
Is because that avoiding the above reasons and consistent practice can make you a successful trader in stock market.
There are many scammers and fake stock market experts all over social media and in your city.
Please don't fall for their flashy advertisements as they try to change your mind by showing rented supercars and fake diamond jewellery to make “YOU” join their course.
There is “NO” strategy in the market which works 100% of the time.
There are strategies in the market which has an accuracy of 60-70%.
Then “YOU” must be wondering, How can “YOU” be a SUCCESSFUL TRADER?
The secret behind is RISK REWARD RATIO.
Not many traders teach you about Risk reward ratio.
That is why people lose their money in the stock market.
So, what is risk reward ratio?
I'll explain you with an example,
Imagine “YOU” take 10 trades week.
Out of the 10 trades, You get 5 profits and 5 losses which is 50% accuracy.
Basically what the Risk reward ratio defines is that, “YOU” should
FOCUS on 1:2 RISK REWARD RATIO.
What is 1:2 Risk reward ratio?
If you keep your stop loss of 10rs, then your take profit should be 20rs for a 1000rs Stock.
SIMPLE isn't it?
We'll come back to the previous example of 10 trades a week.
Total trades = 10
Profited trades = 5
Loss trades = 5
5 profited trades has profit of 20rs each which is 5*20=100
5 loss trades has loss of 10rs each which is 5*10=50
To calculate the total profit of the week,
Total profit of the week = Profit - Losses = 100 - 50 = 50
At the end of the week, even though you made 5 losses “YOU” ended up to be PROFITABLE and a SUCCESSFUL TRADER.
Only keep rules that “YOU” should follow is Avoid the reasons for losses which is mentioned above and FOLLOW strict RISK REWARD RATIO.
And YES! STOCK MARKET is for "YOU".
