The stock market is a magnet for many people who are attracted by the hope of making quick profits, but the truth is that most of the people who trade in the market end up losing money. This is not because it is impossible to trade, but because most people who trade in the market do not have the right approach.
Lack of planning is one of the main reasons why traders fail. Most traders enter the market through tips, news, or social media. Without a proper trading plan, trading is done emotionally through greed and fear. Proper trading in the stock market requires a proper trading plan that has a strategy of entry, exit, and sizing.
Another critical error is risk management. New traders tend to risk too much money on a trade, hoping for a big payoff. But when the market turns against them, they lose a lot of money. Experienced traders always put capital protection first because, in trading, survival is more important than making money. Small losses are part of the game.
Trading psychology is also very important. Over-trading, revenge trading, and a lack of patience are some of the problems. Traders do not accept losses and continue trading aggressively to cover them, which results in larger losses. Discipline and self-control are as important as knowledge of technical analysis.
At Praj Academy, traders are trained that making consistent profits is possible through financial planning, effective risk management, and a trading system. Understanding how markets work, being disciplined, and managing risk effectively can greatly help traders.
In order not to lose money, it is important to learn and not take shortcuts. Create a strong foundation, follow your plan, and be patient. Trading is not about winning every trade; it is about being consistent and disciplined.
At Praj Academy, you can learn to make your trading-investing plan.
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