Today we will discuss a common question that is asked by every investor which is how to recover losses and gain profits. It is mandatory to make a few changes in our strategies to gain profits, so here are a few strategies we have to follow strictly.
1 > Loss is your own and you own it
We have to accept that whatever losses we have faced is because of ourselves and we cannot blame any tip providers as it is not mandatory to follow their tips. We have to take the responsibility for losses we have made and we have to make a correct strategy to improvise.
2- Stop revenge trading
It is wrong to trade with the double the amount which we have lost in order to cover losses. We won’t get any benefit through this revenge trading. Most of the people even take loans and invest in the stock market in order to cover their losses which is a wrong thing. We have to stop trading and think about what went wrong in our trading. We have to figure out whether we
- Have placed Risk management correctly or not,
- Have you selected the right stock?
- Did a proper analysis of the company?
- Did we know why the price will go?
- Whether it is your greed to take a huge risk.
3 –Lack of knowledge on the stock market? Upgrade !!
After figuring out our mistakes, we have to upgrade ourselves by gaining knowledge of the stock market. There are so many stock market training institutes that help to train you online/ offline. We have to improvise our basic trading skills and behavior expected.
For example, Most of the investors trade in options but they don’t know what open interest is. We have to see trading as a business in which rule, knowledge and risk management plays an important role. We should research companies on the basis of their management, production, future plans, etc. you can join our training program by clicking here.
4-Analyze past trades and make a plan
You have to make a plan on how you are going to trade or invest in different ones by placing risk management and money management. We have to make a note on what mistake we did while investing and we have to correct it. Every trade you lost money is a lesson, note it down and promise not to repeat it. If you are not sure about any strategy, you can trade in paper and check whether you analyze a stock by placing risk management is correct or not.
5- Be inspired by traders and investors
If you are not able to analyze a stock or company by yourself, you can even follow an inspired trader or investor to help you out. You have to
- Follow how they use Risk management and which stock they choose to invest.
- See how they select companies or pick stocks for trading.
- Now make a new plan with a 3 step process which is access, feedback and improve.