How to Enjoy Trading

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How to enjoy trading is a multi million dollar question for all traders. Everyone loves to trade and make quick money but it is seen that this enjoyment soon changes to pain. The biggest problem we face while trading is that we constantly keep making the same mistake again and again.

It has been observed that Investors when they have a lot of money, they enter trading and by a matter of chance or luck, they earn and then they start thinking of themselves as one of the smartest traders. These new traders neither follow any money management principles nor are ready to listen to others. They would only listen to TV Channels or someone who tells them what they want to listen. If they are long, they would want to only listen the bullish news and if they are short, then they only want to listen to negative news. They will close their ears to the other view. It is like becoming a pigeon, close the eyes thinking that the Cat is not there but it does not help. This is how they lose money.

Now they try to take some help of some analyst or consultants for trading tips, etc. But the road then becomes very tough as whenever they see a small notional loss, they are first ones to run out of the position. All this happens to traders may it be in stocks, commodity, currencies, forex trading or bonds. I have seen many investors and traders losing money on various exchanges might it be commodity or stock exchanges like Nse (National Stock Exchange), Bse (Bombay Stock Exchange), Nasdaq , Nyse (New York Exchange), Mcx, Ncdex, etc.

These traders decide on some rules, but they soon forget them and it becomes tough for them to implement as they are carried by emotions, fear and greed. I have seen that a good seminar or a book might give you temporary knowledge but it is tough to sustain what is written in the book. It is like every year people take a pledge to start doing yoga and exercise in the morning, but very few follow it.

The changes you try to bring in yourself have to form a habit and then only you can follow a disciplined trading.

My suggestion to you would be to first set some small goals for trading like you would be initially trading in 20% of the current position what you are trading now. The number of trades would be limited in number every month, you will not trade extra trades. This way you would be able to enjoy trading and one can earn in trading only if one starts to enjoy trading. It is very necessary that one needs to evaluate how he or she has done on daily basis by following the rules what he or she thought. Let us say if you have to buy stocks, then your say rule is to buy on dips or once the asset class crosses 200 dma (daily moving average).

Remember you do not need to make a lot of money, my sincere advice to you would be that initially your target should be not to give loss in trading and then slowly you can start earning as if your losses stop, then only two things can happen, either you earn or you do not earn, but you do not lose.

While trading, it should not happen that you become smart only when you lose all your money, because then you would have learnt the tricks of trade at a very high cost. Though it is seen in speculative markets that people learn by paying a very high cost.

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