The idea to trade in stocks came after one of my friends shared his story on his intraday trading success. I didn’t join then, took my own time, and finally when I decided I was prepared to face the consequences of my action. Initially, it looked so easy. My first stock was a cash buy, and I made a profit the very next day.
It didn’t took me long to realize that if I indeed want to make money faster, I will have to begin with intraday trading. I was trying to understand how the trading takes place. I would watch training videos, and read print materials. I was very optimistic about my earning possibilities.`
When I indeed started trading, I also started losing on the intraday platform from the first day itself. Interestingly, even after my losses each day, I will always be quite positive. I will always find an excuse for my losses. Notably, I will try to correct my previous day mistakes. Each day I will come across a new reason for my losses, which became very annoying for me.
With each passing day, the frustration levels also increased. I will increasingly trade to make profits, which never paid off. The more I traded, the more I lost. After a month, I came out with a certain strategy, and continued with it, till I lost, and then I pursued another strategy.
In the meantime I was also reading books on stock market, and also check stock trading videos. Nothing worked for me, though, I did profit occasionally on some of the days.
I learnt a lot. I decided not to worry about my losses. I did put a cap on how much I lose each day. I was losing few bucks only. With each passing day my confidence grew, and I was pretty sure that very soon I will start profiting in a big way.
The one aspect I want to mention is I was trading in just one stock, and continued trading in that stock for the whole first month. When that stock dropped in volume, I traded in another bank stock during the second month. Trading in one stock helped me to understand the behaviour of a stock. After a month, I was able to tell when that stock would move up, or down, and how much it will move. My prediction was right for the majority of times. That’s what made me positive.
For me it was more about managing losses. I would win trades, but then perhaps, due to one wrong decision, I will easily lose my earnings. This was my daily story. Stock trading taught me one important fact – it’s easy to profit, but it’s even easier to lose all your profit. Managing losses will determine how successful you will become in the stock market.