Navigating the Challenges of Stock Market TradingLife can be tough for many of us because we need to earn money, whether we enjoy our jobs or not. To make a living, we often have to sacrifice our time and energy. Finding something that truly satisfies us is a challenge in itself, and only a few people manage to achieve that. Even when some of us do find our passion, others may criticize us for not sticking to the jobs we studied for. While some discover their passion and pursue it, others may feel trapped in their career choices.
For me, I find satisfaction in trading and investing in the stock market. I enjoy having the flexibility to spend my time how I want, which is why I chose this path. I know it isn't easy to earn money in the stock market, but I believe it's possible. With a strong desire to learn and confidence in my abilities, I am committed to making it work.
Like many traders, I've faced my fair share of obstacles. I've tried various strategies, and, unfortunately, I've lost a significant amount of money along the way. Despite being cautious, the nature of trading means that losses can happen. I remember when COVID-19 hit; it sparked chaos in the market, and my portfolio crashed. At that point, some of my funds were locked, which limited my ability to buy dips. However, I persevered and found a way to recover.
The journey didn’t stop there. After the pandemic, regulations changed, cutting leverage for trades. This was a significant setback for me, especially since I primarily traded in Futures & Options (F&O). Previously, I relied on leverage to amplify my trades, allowing me to use a portion of my funds to F&O trades while saving the rest for buy stocks .
However, when the leverage was cut, I found myself in a difficult spot. Now, I have to use my entire capital for F&O trading, which limits my ability to invest in other opportunities. Additionally, They have increased the margin requirements for F&O trades, meaning I need to put in even more money to take positions. Despite these setbacks, I'm trying to manage my situation and adapt to the new trading environment. I remain hopeful that with patience and a solid strategy, I can find my way back to successful trading.
After everything was set and going well another problem emerged: the market became extremely unpredictable due to global events, like the Russia-Ukraine war. I found that everything I’d learned seemed ineffective as I faced daily gaps in stock prices. I made losses instead of profits for some time, but I knew this volatility wasn't permanent. I decided to take a break from futures and options trading to focus on swing trading and creating and back-testing some strategies.
To be frank,It took me more than three years to become profitable in the stock market. While I eventually became profitable, the journey remained challenging for many retailers. Taxes on trading profits and loss can be daunting, and the government frequently raises these taxes, further complicating the situation for traders. Recent changes implemented by the Securities and Exchange Board of India (SEBI), such as shifting from weekly expires to daily expires and now back to weekly expires, along with the changes in lot sizes and increased margin requirements, have made it more difficult for retail traders to navigate the market.
The current regulatory environment seems to disadvantage retail investors who have invested years in learning about the stock market, developing patience, and gaining experience through both struggles and mistakes. Despite these efforts, it feels as though recent changes implemented by SEBI are making it more challenging for many retail traders, both struggling and profitable. It appears that these regulations may be favoring institutional investors who have more financial resources to navigate the market, leaving smaller investors and traders at a disadvantage.
Despite these challenges, I want to stay hopeful for the future. I wish all traders the best in their journeys, hoping they find profitability and consistency in their trading. The path is not easy, but with perseverance, it's still possible to thrive in the stock market.
"Anyone can choose anything, but only a few have the perseverance to stay the course on the path they’ve chosen."
Journey
THE JOURNEY OF A TRADER🎯 THE JOURNEY OF A SUCCESSFUL TRADER
📌This is very important to understand that a traders journey is not a pretty one.
📌It's filled with stress, highs, lots of lows and a lot of hours spent analyzing charts.
1️⃣ The start : HE/SHE Starts trading with the capital
2️⃣ Initial win / Euphoria : Beginning of an excitement for initial win without knowing what has actually happened, even though made some profit luckily or unlikely.
3️⃣ Losses / Slowing down / Low traction : After making some profit started betting all the money without having an idea of proper risk management and losing all. And started complaining about the market.
4️⃣ Pivoting / Drifting and Starts learning (The actual Journey) : Its never too late to start learning. Starts learning the art of trading and doing it properly this time.
5️⃣ Quit or continue : Confused whether to quit or continue.
6️⃣ Start working : Decided to not to give up and starts working harder this time.
7️⃣ Gaining Momentum : Every thing goes good and started to know about the market. Gradually getting to know the tricks, institutional behaviors, where to buy where to sell and when to exit.
8️⃣ Breakeven : Almost there. This is where traders will be in the line of no profit no loss point.
9️⃣ Consistency and Maturity in Trading : Following discipline with the perfection of trading, Traders starting to gain consistency. Even gaining few a bucks consistently over a period of time what is matters the most.
🔟 Success : Now success is not that simple for a trader, He / She had to go through all the struggles, obstacles, Ups and Downs and with the passion for trading.