Stock Trading (Day Trading )-5

                                                                  V. "I don't know."

"I don't know." Concept- In one medical session a person asked - "Doctor, many people say if we keep the painful body part under waterfalls for a few minutes, the pain will be cured immediately. What is your take on this?". Doctor said - "I don't know sir; it is not mentioned in the books which I have studied. So, I cannot say anything. Please let me know if you try this method and if it works!". He still was able to say, "I don't know."  But over 99% of the people cannot say "I don't know," and this attitude is the biggest obstacle to growth in life. Because when we agree that we do not know something, our mind opens for learning. But when we develop an opinion about everything, it indicates our mind is closed to knowledge, and we will not get the life lessons.

 

Improving self for Trade-The same logic applies to stock market trading as well. Most people arrive at some conclusions when they see some fluctuations in the chart, and they opt for the trade(entry/exit). Instead, if they develop an "I don't know" attitude, they walk on the path of successful trading. When you think you know everything in the market, the next day you lose big money. If you lose money on any trade, then you have made a mistake. There is a lesson to learn (no matter what). You are right if you are making money in the market. Profit in trading is inversely proportional to your ego.

 

Never punch an order if you do not understand what are you doing and why, also know your possible loss before entering the trade. Keep a checklist of rules you must follow for each trade, unless you tick the checklist and find all rules in place, do not trade. Ultimately it is about who can remain patient in the process of back testing/demo testing and live testing to build a profitable trading plan.