The TRAP of Trading – Markets:
Most of us who need quick profits want to see our running order to be in the green immediately once we punch the order. Once it reaches 20 or 30 points positive, we book the profit.
What will happen when the same market comes down to 20 or 30 points? We may cut the order in loss or hit stop loss (most of them don’t keep the stop loss but invariably accept huge loss).
What if the market crashes 100 – 150 points? Some will keep on waiting till it reaches the break even point or hoping that market will come up, and then plan to exit only in profits.
Most of them accept the losses or bigger losses than the profits they made. Meaning, they are ready to risk -300 points but take only +30 profits. So how do the mathematics work?
You need to understand one thing clearly. Markets need breathing space. Meaning, it moves up or down every minute, and moves where it is intended to go. So punching the order with multiple lots to make quick money for 30 – 40 points makes no sense. What if the market reverses temporarily?
This may lead to margin calls and destruction (Is it cancellation?) of your accounts. It is just pure gambling, and only a very few survive.
Do you see yourself in that situation? Don’t worry! All you need is proper education in money management & trading strategies to avoid the unfortunate experience.
Trading in the market requires accumulated skill. You should never put real money into the account without product knowledge. We are here to provide complete training and assistance.
So, if you have decided to learn this new business that offers you financial independence and freedom to enjoy your time & money, you are welcome.
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