What is a trading loss ?
Humans tend to regret on lost money,
it’s a human tendency. What humans often ignore is the mistakes they made while
going into losses which is a very important lesson often ignored.
Investors tend to focus on their lost money
but they ignore the mistakes done while trading. Loss is a part of investment
but what is important is to identify the mistakes and rectifying them.
What to avoid and what to focus on?
Make sure not to repeat the mistakes done
in the past trading activities is essential. But to avoid losses, one should
analyse and reflect on past mistakes. To be a successful trader or investor,
one needs to focus on the process, be disciplined, identify the market
algorithms, analyse past performances of a particular share before investing in
it, evaluate past losses and mistakes in order to avoid such mistakes in future
trading activities.
Trading is a one platform which entertains
all kind of investor’s, one can start trading with Rs100 also. Loss of Rs100
can teach you a great lesson worth a billion. Past mistakes will help you to
earn your next huge amount of profit. Once you learn from your past experience,
you start making more profit. Slowly and Gradually you can start making huge
profits because there are no limits on investments.
Key Note
Traders always record their profits but its
very rare that losses are being recorded. Recording the loss is as essential as
recording the profit. Recording all your losses in a book can give you an insight
of what’s exactly going wrong in your trading activities. It’ll help you to
identify a set of patterns where you are going wrong and you can make
modifications in your trading process and strategies. Once you come to know
which shares are performing bad from your portfolio, you can release those non-performing
shares and let the winners lead your pack.
Once you realize your mistakes behind
investing in non-performing shares, it’ll be easy for you to achieve your
goals.