MUST READ ARTICLE !!!! BASIC REASONS AND OVER COME OVER LOOSING MONEY IN MARKET

1 Do not trade with hesitance, half heartedly or in
over confidence. You may incur small but
repeated losses if you are scared of the markets
or heavier ones if you are overtly brave and
foolhardy.
2 Be patient when your trade positions are moving
in the right expected direction to extract
maximum gains and ensure the gains by
improvising the stop-loss level, time and again.
Do not be pessimistic here or else you may book
gains pre-maturely & may later repent on exiting
early. This may lead to keeping on re-entering the
same trade at further levels & repeatedly exit at
small reversals in panic, which in turn would
erode earlier small gains & also build losses. It’s
not whether you’re right or wrong that’s
important, but how much money you make when
you’re right and how much you lose when you’re
wrong & that makes all the difference between
Winners & Losers.
3 Do not be over optimistic when trades have hit
the suggested stop-loss levels and make sure you
exit there. You may miss better and multiple
opportunities on being stuck in deals gone wrong
leading to higher and higher losses each day.
4 Do not discuss your open positions with one and
all. This will lead you nowhere and confuse you
more, as all would air their own views on the
same (whether knowledgeable or not) and many a
times, would make your trade decisions seem as
foolishly and hastily taken. If only you would have
consulted them earlier…
5 Do not develop a tendency of being a Bull or a
Bear in these markets. There is only one side to
the markets and that is neither the Bull side nor
the Bear side – But ONLY the Right Side at the
Right Time. Trend is King, so follow it at all
times.
6 Realize that you are in a bad situation and exit
fast when you need to pray for relief at each rise
or fall in a trade which is leading you further in a
deep pit towards heavier losses.
7 Follow ONLY one Analyst’s or Technical Advisor’s
guideline at a time, as more guidelines will again
create a lot of confusion. You can opt for or look
out for an alternate guidance when the earlier
guideline proves to be less productive or loss
making, but not simultaneously.
8 Be honest to yourself as hoping or praying for
something different, than the actual reality or
situation is nothing less than fooling your own
self.
9 There is NOTHING such as HUGE, mind-blowing
and sky-high profit makings overnight, as assured
by many to win a prospective client. YES, there
are sizeable gains and high returns for a
disciplined trader and may return exactly the
opposite, if not worse, for the non-disciplined. Do
not enter this trade market under any illusions of
getting to be a Billionaire overnight. It will never
happen. In fact all that you now possess may
also be lost.
10 DO NOT BORROW or trade with funds that are not
yours or pump in more funds by borrowing to
hold on to loss making trades. Trade only with
own funds that are spare-able and be prepared
mentally in loosing even that in totality, in the
worst case.
11 Never trade or enter / exit positions in panic.
Volatility is a non-separable component of this
trade market and will be present most of the
times.
12 Do not be a party to rumors or be guided or
misled by these. Verify & double-check on the
source for genuineness.
13 Stay away from the people who have a habit of
saying “I had told you – See now?”. These are
the very same people who would never put
anything on paper or ever trade on their own
views- with their own funds, as in reality they do
not have any concrete views or knowledge. They
are mere sponges on an ego trip, who keep
soaking or gathering tidbits of information from
anywhere available irrespective of their reliability,
put all together and spread the newly formed
news. If what they say goes wrong, they would
disappear and would be seen nowhere or if found,
might now have some stronger views and reasons
for why the wrong happened as generally these
kind of people are very good convincers & are
blessed with the gift of gab. Listening to these
characters and their views is very dangerous. As
the wise always said: – “Half knowledge is
always the most dangerous”, “Ignorance is Bliss”
and “Blessed are the fully knowledgeable”.
14 DO NOT TRY to be the TREND SETTER or the
first one to know where a particular trade will
turn from. No one can possibly be, except by a
sheer matter of chance, the best seller or the best
buyer – so why try it? You might end up loosing
a lot of money and also becoming the laughing-
stock for all. Follow the trend and make
respectable gains, “Quietly”.
15 Do not enter the Commodity Markets with Stock
Market trading ideas. Though both are speculative
trade markets, there is a substantial difference in
both and generally have opposite trading patterns
and thumb rules.
16 Providing past performance records is not a
mandatory rule for Analysts or Advisors, and the
same info (wherever posted) can be misleading,
as the same can be manufactured by the end of
day to dupe prospective clients. Do not try to look
for something that can misguide you & lead you
on the wrong path, ending up in losses – money-
wise & also confidence-wise. Upon subscription
by the trader, the same people showing fantastic
results on their websites, but performing poorly in
real-time may later not be available even for a
discussion or may later say that “Past
performances are not an assurance of any future
success”. So take a Trial for a fortnight or a
month (not for a day or two), do some live paper
trading & only trust the live performances. Judge
the genuineness of the research quality and real-
time trading support only on the basis of live
experience and not by past performance records.
Most of these records could be fakes. Better to
pay for the Trial & come to the right conclusion,
rather than loose a lot of capital by trading on
faith generated by looking at & getting impressed
by the past performances.
17 “Trading without a Stop-Loss & yet making gains
is sheer Talent – Not trying such stunts is
Intelligence”. The stop-loss practice is for your
own benefit as this provision has utmost
importance and is not provided on each trading
ticket by the exchanges, just for the heck of it. If
the trades turn & move in the opposite directions
beyond entry levels, they might further move very
fast in a volatile manner & the losses accrued, in
the absence of a stop-loss, can be un-
imaginable. There are several things happening
across the globe constantly, which affect the price
movement, direction & volumes in commodity
trading, as basically they move in accordance
with demand and supply situations & are also
greatly affected by the Geo-political scenarios all
over. It is not humanly possible to track each &
every occurrence, watch out for economic data’s
released all around the globe and understand the
level of their impacts on the trade movement &
direction of all commodities, though you may be
constantly updated on most of the developments,
most of the time. Many times the reaction or the
impact of these developments is so quick &
enormous, that large & rapid movements in rates
are instantly triggered with high volatility, even
before the news on these developments reach all
over the world. In such a scenario, you may never
know as to what level these trades could go to &
the losses (though sustainable by a few) may be
very large. These losses are not the only losses
that you incur if caught in such a situation – you
also miss out on the opportunity, the same
commodity is offering, in the opposite direction
and also by other trades as most of your
attention and funds will now be concentrated and
caught up on this particular trade gone wrong.
Remember – Growing wealth is important, but
safe guarding seed capital is even more
important. It’s easier to resist & also absorb
losses at the beginning than later.
18 Averaging in loss making positions is a practice
which is most commonly seen & generally leads
to more dangerous losses. This is also
recommended by a number of advisors, but I
certainly do not recommend it. In fact I strongly
oppose it. Remember – YOU are incurring the loss
& not your advisor.
19 Putting all your eggs in one or a couple of
baskets could prove to be more dangerous for the
day trader. Having a wider investment or a
trading spectrum would be more effective. All
entered trades may never go wrong
simultaneously but a stray one or two could and
what, if you have traded in only those? It may
also happen that the 1 or 2 trades that you have
entered into, have moved in the right direction,
but have not achieved the expected high results
or gains in comparison to the ones you have left
out. So it is only advised and not stressed upon
– that the trader should take positions in a wider
range of trading / investment opportunities to
achieve better results.
20 Do not be biased to a particular commodity. Look
at all commodities (having healthy trading
volumes) only as profit generating opportunities &
not at the English name or Social status of the
commodity.
21 Always remember –“You cannot use yesterday’s
ideas for today’s business and expect to be in
business tomorrow”. Be ready to accept and
implement change immediately and constantly as
“Change” is the only factor that’s constant in the
world – everything else keeps changing and its
meaning is all the more true in these highly
volatile and ever-changing market scenarios.

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