It amuses me to see people finding reason, when market goes against them. Markets are much smarter than all of us put together.

Should it even matter that how much market has moved? Your profit should be function of your risk capital and your bet size. I think if one wants to become successful than small consistent wins are essential over random big wins.

I get on an average 10 messages a day where various people from different part of country reaches me out. They share their story how they lost money. And now with limited capital and want to revive their luck. While I want to reply most of them.

I am not sure what strategy, what system what call I may give them which would change their luck. But then I realize that, if they cant bet they wont make money. Cause I also go wrong with views/trades. And this would break them further.

Well first thing, To win the game you have to be in the game. YOU CAN NEVER LOSE YOUR CAPITAL. Instead of reaching out some expert on twitter, The best thing is to
1. Look for mistakes you did
2. Was it position Size
3. Was in wrong stock
4. Was it just bad luck ?

5. Introspect, did you actually thought for outcome this bad?
6. Were you prepared for this kind of loss?
7. Did you know this would devastate your mental state?
8. What was your plan B to recover this loss?

9. Now what?
10. I wanna make money from market itself now.

Normally this is what the mental state of trader who goes through that difficult phase of life. Alone, cant share with family, friends would laugh. So he does all the blunders which all us have done.

So he starts looking all around and he thinks that markets everyday moves so much all I have to do is catch this low and sell at that high. But it never happens that we know.

With whatever money that has remain, the only available choice is Buying #options. And thats the like lottery ticket. And for most of us the first few trades where we bet less works in our favour. And we start feeling that i have understood this game of speculation.

And this time for a brief period his luck and confidence rises. And on good trending day he manages to buy some CE and call himself trader that, now I need to bet large and I can get there.

And guess what with his personal loan plan for tripling money in 3 months goes out of the window. he failed to understand his own psychology. It was never accuracy or market view. But always my own bet size, and emotions attached my own money which was cause of disaster.

With few large bets on non trending days his capital halves and his confidence thrashes. This time he takes it too seriously and does not want to return until next bull market.

A small thread of practically every retail / HNI trades who bet large with odds against him. And without plan.

Well then what should be the approach of someone who has smaller capital? Should they not venture in to trading ? Should they not bet at all? Is there no chance of them recovering their losses.

Will try to make small video soon on our youtube channel. What and how a small #trader should look to trade.

https://youtube.com/chasealpha 

Until then please dont trade :)