How to deal with losses in the stock market

How to deal with losses in the stock market


Loss & profit are part of trading system; it depends upon lot of factors and sometimes it depends upon our luck also. No need to worry about our loss. Everyone should be thinking that once I got loss in trading, surely I can achieve profit in next time. It is the key point of a trading. Handling of our loss & profit is most important. Not too much disappoint about your loss, only think all are part of trading. Once you get loss, definitely you will have a chance to win.

One who works sincerely in trading has definitely achieved profit in his life. The main thing we have to learn before trading is that we should obey the rules & regulations in proper manner. Not trade with an emotions mind; we should keep our mind free while trading. If you are a beginner, first you should trade with small amounts, and then only we can study the lessons of trading. We can increase our capital amount slowly after understanding the ways of getting profit & loss. It is the right way of trading. It is the secret of successful trading

The other important thing that needs to remember is that, not to change the segment of trading suddenly without any relevant reason while trading. So first you have to trade continuously in one of the good segment and only change that segment after understanding about the market scenario. This is also a secret of successful trading. One who change the segment of trading without any reason it is sure that he will loss his balance in trading & loss his money also.  It remains as a black mark in his entire trading career.

Next mistake that occasionally happen from the beginners side is that the selection of trading methods. Such as day trading, position trading. In my opinion day trading is suitable for a beginner because in day trading we can buy & sell commodities in a day itself. Also we can study the method of trading very easily through this. That means we can trade with small amounts in day trading. Then gradually we can change the trading section, segment & all.

The other thing which needs to remember is that do not trade by some one’s suggestion & tips. Especially friends, colleagues & others. I heard many people’s story like this. It occasionally happens in share trading, they buy shares according to the suggestion of their friends & colleagues without giving a detailed checking in that. Then the market price deviation happen, that is when the market price move down, because of not having much good returns the company lost their stability. And that way we lost our money also. So the main important thing in NSE Share trading is that the selection of companies. So when you research a stock, the first thing you should look at the earnings of that particular company. Doing proper analysis is an important part of investment process. It is an activity that needs to be done before investing.

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