Comment on Software Engineer up 400%

Pawan_Arora commented on 07 Aug 2013, 04:38 AM

Thanks Kiruba, Let me reply your questions:

1) The reason is simple, you would have seen many stocks going down 50-60% in a single day. Successful traders don’t want to blow up their account with just one such bad unforeseen event. Index futures are much safer because the % movement is not too much and one gap up/gap down wont define trader’s destiny.

2) I generally don’t keep targets for Futures, but for options I book when there is enough money on the table.

3) There is no simple answer that how did I manage to treat money as number, There are too many days of loss/profit has gone into the process to overcome that emotional barrier. But we can not treat money as mere number when we are trading with the money which we can not afford to lose. So one advice – Don’t play with big money initially, keep trading with small sums so that in the learning process when you are bound to loose, you don’t make big losses. Don’t just dump call options and then hoping for market to turn around, These actions can blow up your account in couple of weeks. You can not escape from losses but what you can do is to keep your losses less so that you can trade for few months rather than giving up after few days just because you blew up account fast enough. Just make sure that with every loss you are learning some lesson. Rest all will follow.


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