Why Traders Ignore Stop-Losses Despite Knowing They Should: The concept of a stop-loss is one of the first things every trader learns. Yet, many fail to follow it when it matters the most. Ironically, the very tool designed to protect capital is often ignored, leading to massive drawdowns or even account wipeouts. But why does this happen? If traders understand...
Title: Are We Witnessing a Medium-Term Top in Indian Markets? A Deeper Dive into Market Trends The Indian stock markets have corrected nearly 10-12% in recent months, and the internal structure of the market suggests that this may not just be a routine pullback. Instead, it raises the possibility of 26,000 acting as a potential medium-term top. The charts of...
The Golden Days of Technical Analysis Are Behind Us—But Not for the Reasons You Think Technical analysis (TA) has been the backbone of trading for decades. Patterns, indicators, and price action strategies have helped traders navigate the markets, and they continue to do so. But here’s the problem—many traders don’t realize that TA isn’t failing them; their own...
Cognitive Biases and Heuristics in Trading: How Our Minds Impede Sound Decision Making Trading is often seen as a rational, data-driven activity, where success hinges on analysis, strategy, and execution. But, in reality, it is not just technical indicators and chart patterns that affect a trader’s performance. The human mind, with its biases and heuristics,...
Every Field Demands Skills, and Trading is No Different Every profession requires a unique set of skills—doctors need precision, engineers need problem-solving abilities, and athletes need discipline and endurance. Yet, when it comes to trading, many people mistakenly believe it’s just about clicking buttons and watching numbers move. The truth? Trading demands a...
One of the most common frustrations traders face is missing out on stocks that rally while being stuck with stocks that barely move. Why does this happen? It often boils down to impulsive decision-making. Here’s the scenario: You enter a trade based on your analysis. The stock doesn’t move as expected, while the market or other stocks start rallying. The fear of...
Jim Roppel is a seasoned investor with a unique approach to stock market investing, and his career offers a wealth of knowledge for traders and investors looking to refine their strategies. His expertise in spotting growth opportunities and his disciplined approach to investing have helped him build a strong track record over the years. While not as widely known...
Lessons from the Life of Jesse Livermore: The Man Who Mastered the Markets Jesse Livermore, often regarded as one of the greatest traders of all time, left a legacy that continues to influence traders to this day. His life and career, filled with both extraordinary successes and catastrophic failures, offer timeless lessons for anyone looking to navigate the...
The financial markets are full of complexities, and one pattern that traders often encounter in bear markets is the “Dead Cat Bounce.” It’s a term that sounds peculiar, but understanding it can save traders from making costly mistakes. In this article, we’ll delve into what a Dead Cat Bounce is, why it occurs, and how traders can spot it to make more informed...
Why Do People Lose All Their Money in Bear Markets? Bear markets are a natural phase of the market cycle, yet they leave many traders and investors with empty pockets and crushed spirits. While bull markets are often forgiving, bear markets expose every weakness in a trader's strategy, psychology, and risk management. Let’s explore the primary reasons why people...
Market Outlook for 2025: A Cautious Approach Based on my analysis, the current market level around 26,000 appears to be topping out, and I am not particularly optimistic about a sustained upward trend. My overall outlook for 2025 is bearish, as I anticipate a challenging and potentially painful year for equities. Therefore, I am adopting a defensive approach in...
The Problem with Unrealistic Expectations in Trading In trading, there’s an inherent paradox that many beginners face but rarely acknowledge: we enter the markets expecting them to yield profits from day one, with little to no preparation. This expectation starkly contrasts with how we approach most other fields in life, where education, patience, and practice...
Developing a Winning Mindset: The Edge That Sets You Apart in Trading In the competitive world of trading, achieving consistent profitability requires more than just mastering the basics. While technical analysis, risk management, and money management are essential components, they’re not enough to set you apart from the crowd. Everyone knows about them, and most...
The Market is a Marathon, Not a Sprint: A Mindset for Long-Term Trading Success In the fast-paced world of financial markets, the allure of quick profits can be intoxicating. Many new traders enter the stock market with dreams of instant wealth, fueled by stories of overnight successes. However, seasoned investors and traders know that the market is not a sprint...
If you’ve been trading for a while, you’ve likely experienced the bittersweet relationship every trader has with the market. It's alluring, promising wealth and freedom, but just when you think you're in control, it turns around and shows you who's boss. If you ask me, the market is like that one girl (or guy) who seduces you with charm, only to leave you...
Trading Will Break You Before You Master It: A Trader's Journey Trading in financial markets can be one of the most rewarding yet humbling pursuits one can embark on. Beginners often enter the arena with dreams of quick riches and freedom, but they soon discover that trading is a brutal teacher. Before you "get the knack of it," trading will break your...
When it comes to trading, many people envision it as a fast track to consistent monthly income. The idea of making a predictable, regular amount of money every month is alluring, especially in the world of day trading or intraday trading. But while the potential is there, focusing too much on generating monthly income from trading can quickly lead to frustration...
Think Like a Casino Owner: Master the Psychology of Trading If you want to win in trading, stop thinking like a gambler and start thinking like the casino. Here’s why: Casinos lose money to players all the time, but do they panic? No. Why? Because they know one thing: the edge is on their side. They don’t care about a single hand, a single spin, or a...