Traders who comes for trading in equity markets, initially gives losses as they are unable to have control over greed and fear. At times with all the information and luck in their favour, they make profits and then gets over confident about their success resulting in over trading and finally ending up in losses. This is the first stage of every new trader. 80% of the investors who enter the market finish off at the first stage itself. The rest 20% after putting some serious time at learning trading are able to break even and sustain the Second stage which is to Break even. After the testing First and second stage the third stage comes in which traders make profits. Only 5% of the traders are able to reach at this stage. It is strongly believed that anybody who wishes to come to the 3 rd Stage has to pass through the above 2 stages.
Friday, November 10, 2006
Every trader passes through three phases
Posted by Jitendra Joshi on Friday, November 10, 2006 in | Comments : 1
Traders who comes for trading in equity markets, initially gives losses as they are unable to have control over greed and fear. At times with all the information and luck in their favour, they make profits and then gets over confident about their success resulting in over trading and finally ending up in losses. This is the first stage of every new trader. 80% of the investors who enter the market finish off at the first stage itself. The rest 20% after putting some serious time at learning trading are able to break even and sustain the Second stage which is to Break even. After the testing First and second stage the third stage comes in which traders make profits. Only 5% of the traders are able to reach at this stage. It is strongly believed that anybody who wishes to come to the 3 rd Stage has to pass through the above 2 stages.
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perfect analysis
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