Losing in Trading? Stick to a Trading Plan & Study Your Mistakes

Traders lose money in stock market for many reasons. They may not have the right methodology to trade with. They may not have clear understanding of how the market works, key indicators, key numbers, and ideal times to trade. Risking too much per trade and not being mentally prepared for the ball game.
Whether it’s the result of unexpected market events or simply a poor trade idea, losing money invariably leaves one with a miserable feeling. Worst still if it is happening over and over again- a trader also feels loss of confidence and right attitude.
In my tenure as a trading coach and guide I have come across and observed many traders who consider putting in real money even when they are losing with their paper trades. I don’t think anything can be worst than that. But then there is little you can do as a coach when someone has lost the sense of direction.
Some of the most common consequences of losing in  could be that the trader gets into frenzy and makes haphazard trades without a pre-plan and as a result losing even more, or the second outcome could be that he may be so scared of incurring any more losses that he starts to avoid trading.
Real traders are those who don’t lose

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