Anaghalaxmi Academy

Typical JOURNEY OF Trader

1. I finished reading a book on technical analysis and attended a couple of paid seminars. Now I know what to do. I will just start making money from Monday. Can't wait. Don't know why this weekend is so long. I will kill the market

2. I am shocked. This moving average worked so fine in my testing but did not work in my first trade. Let me change the parameter. Now it should work

3. No way, this moving average is not just work the way the trainer demonstrated in the seminar. I am getting a lot of whipsaws. I think I need to add one more indicator like RSI or MACD

4. This is still not working. I lost in 8 out of 10 trades. I can not handle volatility and can not afford wide stop losses. So, Let me change the time-frame from Daily to 30 minute

5. Oh my God, I did 20 trades and 17 resulted in losses. Maybe this was not my week. And, I could have made so much but I missed all the good trades since I was in meeting with my boss

6. Oh now I know, I forgot to notice the triangle. Next time, I will focus on patterns also

7. I am missing good trades. The trading signals on my chart are not aligned well. By the time I take notice, market already makes a move and I do not want to chase the market because that would spoil by risk-reward ratio. I need a paid charting platform

8. My new paid trading platform looks so good and I also boasted in front my trader friends and they all feel that I have graduated to the next level

9 S**t ! I am still unable to avoid big losses and end up cashing out small profits

10. I have lost a lot of money and confidence. I need to take a break, read more books and attend one more seminar by that new teacher. I have seen seen his Youtube videos and he is really good. Now I know what to focus on

11. Oh my God ! I am still losing money. Nothing works

12. I think the only way to make money is through "Algo Trading". These algo guys make all the money that poor guys like me lose. I have got to shift onto algo trading

13. I just can't believe that I have lost more money. Actually, trading is gambling. But, I have to recover my money

14. I lost more because in order to recover, I took bigger bets. I can not even tell my wife now as I had told her last month itself that I had quit trading. I need to close the trading account anyhow

15. Wait ! My friend just told me that he used supertrend indicator last month and made money. I should have talked to him when I started. Nevertheless, Let me give myself one more chance and use supertrend indicator

16. Oh, I lost more money. Now, I have to postpone buying the car (can't even buy a bike now)

It can go on and on. My advice is to get out of this trap (Chakravyuh) before it leads to emotional,financial and time loss. Stop looking for a holy grail. Because, there is no holy grail. The secret to make money is not some exotic technique or some hidden indicator. The only way to make money is TRADE MANAGEMENT (POSITION SIZING + RISK MANAGEMENT + MIND MANAGEMENT). Spend your time on gaining knowledge of these aspects rather than searching for a new indicator or a new trading system or a new AFL or a new GURU. As I always say, "the only person who can help you is the one in the mirror.

Discipline is main toll to success in the trading share market. The main issue with all we humans is that we are emotional creatures and often our emotions lead to a lot of troubles to ourself, be it relationships or be it trading. One of the biggest reasons why you keep listening to this fact that 95 % of the traders are loosing money is because they don’t keep a check on emotions. They know they need to cut looses, but emotions hold them back until there is a bigger loss and broker shuns the account. Awe could found a lot of traders in the trap of being right with technical analysis. They do not close the position though they found it will not going into their favour.

Everyone seems to be talking about money management in the trading world yet very few people put it into practice to make their account grow safely.

One thing I’ve learned from hearing all the blowout stories over the years is that a trader is only as good as his trading plan.
Everybody deviates from a plan occasionally, but without one, you are toast.

"There are good trading systems out there, but they have to be monitored and adjusted using individual judgment. You have to stay on the ball—you cannot abdicate responsibility for your success to a mechanical system."
_Alexander Elder

"When a beginner wins he feels brilliant and invincible Then he takes wild risk and loses everything."
_Alexander Elder

The temptation to do something while you wait is too hard for most people to resist.