What are the dark secrets of stock markets that are unknown to ordinary traders?
>>>>Here few dark secrets of stock market that are important to know every trader
- returns. In hope of good returns and lack of knowledge ordinary traders are the biggest losers in the market.
- Ordinary Traders and Investors do not understand the relationship among the various financial assets and the reason that drives the asset to a particular point price. They do not know about the link between the economy and the financial asset they are trading.
- Big Players trade with the strict stop loss of 2% of the capital they are trading so that capital can be managed even after straight consecutive losses. Capital can only be managed with a strict stop loss which is avoided by most ordinary traders because they trade on leveraged accounts and end up blowing their whole account in one go.
- There is no trader in the world with 100% accuracy. One must be comfortable with losses one makes as this is the part of the game. One must shift their focus from making money fast to making large profits and small losses. Avoiding large losses will help you to last longer in the investing game.
- Psychology plays an important role that differentiates a profitable trader from the trader who books losses. If your psychology related to trading is not right, then it will become hard for you to make money.
- You make no money on stocks bought by you if you have not booked your profits and you make no losses on stocks if you have not booked your losses.
- Ordinary traders overpay to fund managers every time even though they are making losses out of their investments.
