Fears in Trading

1. Trading is never certain. We trade on probabilities. based on our charts and analysis, we feel that Bharti Airtel share price should come down. So, we take a trade on the short side.Remember, we can never guarantee that price will fall. No chart pattern can give such an assurance. What we
are doing is this: we take a position based on our analysis. If it works out we make money. But, it may not work out. Then, we have to be prepared to lose money.

As Traders, our job is to earn Rs 100  and Lose - not more than Rs 80. then,we will make a net profit of Rs 20.

Understand this. Losses will come. They are part of trading. 

So, why do we get worried when we want to trade?  Two reasons.

First, we do not like to take a loss. It hurts our ego. 

Second, the loss may be more than our capital can afford.

The solutions are easy and simple.

First, accept that losses are inevitable. Enjoy the process of trading. If there is a loss, that is what the market wanted.

Second, manage your volumes. if the loss is worrying you becasue you feel you cannot afford it, then you are trading too large. Reduce your volumes immediately.

-Sudarshan's blog