Observations - Trading career

We strongly believe that every trader passes through the following three stages in his/her trading career.

STAGE 1

EVERY TRADER LOSES INITIALLY

We strongly believe that every investor who comes for trading initially maker losses as he/she is unable to have control over his/her greed and fear. At times with all the information and luck in his/her favour, he/she makes profit, and then because of his/her new over confidence, trades more that results in his/her profit gone and also sometimes a portion of his/her capital is also gone. This cycle of fear of the losses and greed to earn more makes then initially make losses

STAGE 2

THE TRADER BEGINS TO MAKE NO PROFIT NO LOSS

Out of the total investors who enter the first stage, 80% of them finish off at the first stage only and after a year or two find that the stock market is not their cup of tea. So in the 2nd stage only the 20% investors try to break even in their trading and quite a lot of them are able to have control over their fear and greed with a result that they stop making losses. Now these traders are ready for the 3rd stage

STAGE 3

THE TRADER STARTS TO MAKE PROFITS

This is the stage where a trader makes consistent profit i.e. he/she does not have to give huge loss cheques to the broker. In fact this is the stage that everyone wishes to be in the stock market. But we strongly believe that anybody who wishes to come to the 3rd stage has to pass through the above 2 stages also.