Today I didn’t do much trading during the day. I watched and
observed the market for Zinc, Crude Oil and Natural Gas during the morning Hours. I did trading in these
commodities during the evening and at the end of the closing day I lost all my Profits. Please go through
the reasons why I lost all my profit.
Causes of Failure: I was getting almost 3700 of Profit in
Zinc but I was expecting more from the market so I didn’t book the Trade. When it
came down a bit I booked a profit of 2800. Later on I experimented with Natural
Gas, the trend was bearish but as it was almost 7 points low and resisting at
that level I thought it will bounce back and I will make some profit. But it
didn’t happen. The market came down 2-3 more points and I lost money.
Even at that time I was getting 2000+ profit, but to screw my
Happiness I again experimented with Crude Oil. It was showing a very high
upward movement, than it slowed down a bit at one point, I thought it will come
down again and I took a selling position, but after a few minutes it again
bounce Back and speed-ed up so much that I lost 2300 at that point and then
square off the trade with a loss. I actually had to square off because it was inching
towards the closing of the day.
Learning :
·
Don’t be so greedy: Due to greediness I lost consecutively
for 4 days loosing almost 60000 rupees. If I had booked a profit of 35000 in
those four days without any greediness I would have added 35000 to my account
and the sum would have been 95000 Rupees. But due to my Laalchi attitude I had
to lose that amount also. And now I am down to 50000 Rupees. This could have
been 145000 Rupees.
·
Don’t do too much of Trading: The reason why I
lose this much of my capital is because of excessive trading. I use to sit the
whole day from 10 am to 11.30 pm and wanted to earn as much profit as I can. So
suppose if during the day time I am able to earn 5000 Rupees I will again trade
in the same stock and eventually I lose all of it because I can’t be right all
the time. So one of the most important lessons is that I should square off if I
am already getting a reasonable profit from that particular commodity.
