Why Most New Traders Lose Money

Asad Dossani
Around 90% of traders lose money.

And even though they do whatever they think they are supposed to do, they still lose out.

When I first started trading, I was like that too.

People are always handing out trading advice like, 'always keep your emotions in check' and 'don't let feelings affect your trading behavior'.

This advice is certainly important, but it is useless on its own. In spite of following all this standard advice, I lost my entire first trading account.

Have you ever lost money in a bad trade? If yes, then you know how I felt. I was disappointed and ashamed.

But instead of giving up I told myself I was lucky it had only been a small amount of money. I gathered the courage to do it again, and this time I would do it right.

I then set out to learn everything I could about how to trade. I read books on trading, subscribed to newsletters, talked to other traders, and eventually began my second trading account. This time, I was better prepared. I came up with better trading ideas, applied solid risk management techniques, and my account began to grow.

Throughout my trading career, I have constantly been studying different approaches to trading the markets. I've traded different assets over various time frames, using all kinds of strategies and techniques. Over time, I've discovered what works and what doesn't.

At the same time, I've made plenty of mistakes too. This includes trades gone wrong, strategies that stopped working, and sometimes poor discipline leading to poor results.

The silver lining to making mistakes is that you can learn a lot from them. We tend to learn more from out failures than our successes. This is because we usually analyze the failures in greater detail in order to understand what went wrong.

Over the years, and after much trial and error, I have learnt a lot about how markets work.

I learnt that most of the advice I received when I started trading turned out to be useless.

I learnt that making money trading in the markets requires a deep understanding of market behavior.

It also requires a strong level of commitment.

With the Profit Hunter, I want to share my market and trading knowledge with you.

Over the course of these newsletters, I will teach you all the secrets and all the techniques you need to be profitable in your trading efforts.

So, let's get started, after all time is very important for anyone who wants to profit from trading strategies!

The first, and most important, secret is that market movements are random. Most of your trading gains or losses are based on luck alone.

Whenever markets move in a certain way, we try to find an explanation for why the movement occurred. It must be a result of a coup in so-and-so country, we say. Or the rising prices of some or other commodity.

If we can't find an explanation, we just go ahead and invent one. We then believe this explanation even if it probably had nothing to do with why the market moved in the first place.

This is natural - we, human beings, are naturally curious creatures. We need answers, we like knowing things. But do yourself a favor - and switch off whatever business channel is feeding you useless 'market explanations' 24/7.

Because markets move in mysterious ways. And we often can't explain the movement, and honestly, it doesn't really matter.

So forget about why the market moved. Just be aware that it did move and don't worry about why. The best way to interpret market movements is to think of them as random, because that's exactly what they are. The sooner you completely accept this fact, the sooner you can begin trading profitably.

Your goal, as a trader, should be to find predictable movements amidst all the randomness. Although most market movements are random, there is usually an underlying trend. You need to find these trends and profit from them. Now, finding these trends is not easy. Even if you do find a way to predict the trends, you will be wrong a lot of the time due to the random movements of markets. But that's okay. Because your goal is not to be right all the time. Your true goal is be correct more often than you are wrong.

This is not easy. It is a great challenge, with even greater rewards. But I will help you every step of the way.

As I said before, the reason most new traders lose money is that they follow the wrong advice. They focus too much on things like keeping emotions in check. Even though this is important, it doesn't help them find predictable movements in markets.

Instead, new traders (and seasoned traders) should focus on understanding the nature of market movements.

And that's exactly what I will show you how to do through the Profit Hunter.

As a market veteran, I am still learning and studying the markets every day. My life's work is to identify underlying market trends, and figure out where profits are made. And then bring these profit-making ideas to you.

With my strategies, and your commitment, great profits can be yours.

You may be wondering how to find these underlying market trends. How do we know when a market movement is random versus when it can be predicted?

And this brings us to our second secret that I'll reveal in the next newsletter. I'll reveal how we can focus our efforts on the market movements that are predictable, and use this to come up with profitable trading strategies.

In the meanwhile I'd like to hear your trading story. Have you too blown up your trading account in the past? Why do you think it happened? Tell me about it.

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110 Responses to "Why Most New Traders Lose Money"
Susan
30 Sep, 2018
I lost all my savings with iq options . I invested £95,000 and they refused to allow me withdraw both my initial deposit and accrued interest. I have reached out to a recovery expert hackwhitewizard@tutanota.com... to help me recover the money back from them and it is really progressing. I have been able to recover over £59,000 and I hope I will get the rest of the money in few days Like 
Sandip Marathe
12 Feb, 2017
Hello sir, I appreciate you article. It is nice one. I agree that people always try to invent new reasons to analyse market Moves based on there x indicators. Which reason is not always true, if they start believing that reason as a secret tick eventually they fail. And again they come up with another anlysis sectret ticks which which alsp eventualy fail. So traders become victim of analysis pralysis. Instead of accepting the out of rule behaviour of market. But i disagree with ur statement that market is random. Its not random but its partially random. We see many time it revereses from previus supoort nd resistance zones, from where market hd reversed. Many times we see retracemetns from 61, 78% fibo levels. So i would say. Market is not always random. Another thing is people trade with no brain. What there indicators say they believes blindly. And push themselves into d losses. Instead lf fearing market, make it friend of yours. An asset which has enormous potential to make u prosperous. Your thoughts about mkt also matters, confidnece is the key. If u fearing before taking trade, means u hv no confidnce on ur setup. Which means u wont make money ever with that. The success of stategy is not depend on single trade but on series of trades. And always start with small lot size trade, by lookong at ur capital. If u loose ur 50% capital in 2-3 trades. People wont even look towards d trading in future. Give urslef a time to settle down. Like (2)
aju
06 Nov, 2016
sir i lost 3 lack in stock and commodity in few days pls guide me how recover it....Like (5)
ajay a
06 Nov, 2016
i have trade in stock future but i have always lose money pls give advice sir....Like (1)
ajay
18 Oct, 2016
i have trade in stock future but i have always lose moneyLike 
Nagesh Kini
24 Sep, 2016
For success in any field it requires acquiring in depth knowledge in that field. What we call proficiency. It tales many years to empower in the subject with lot of reading, practicing, experimenting, "Najnenana Sadrushum" is an ancient adage propagated by our pears. Don't be leave in seeing, Looking in depth into the subject will give the correct result. For any failure, one should blame for oneself and not on anything else. All our activities we make for furtherance of better life. Without Human intervention no human activities will get through. By the human being, for the human being and to the human being. In stock market greed for quick money plays more that the logic. One should take ebpvery recaution before investing huge money that too borrowed one.Like (1)
Valerian Madthin Goveas
23 Sep, 2016
Most of the persons invest in stocks as per the broker friends advise. None of them know that they should learn to swim in the market. Personally they can not take a decision to learn. Like 
Kunal
26 Jun, 2016
Hiii sir I lost 7 lack in just 4 months in equity and commodity market feeling afraid of trading now ,shall I stop my trade plz guideLike (2)
g.Purushothaman
26 Jan, 2016
In my earlier e-mail, I have written that trading is a white collar crime. Operators buy from short sellers and push up the price to close the short trades. It is not a manipulation? Short trades are closed quickly. But, long trades are not closed quickly. Retail traders are being trapped. Price falls after all the operators liquidate. Retail short traders and long traders are the victims of the operators. In such a situation, who can earn? It is a million dollar question.Like (3)
G.Purushothaman
26 Jan, 2016
I am a commodity trader. I don't do it on large scale. I have found out one thing in this trade. Price rises after squaring off the stop loss of long traders. Price falls after squaring off the stop loss of short trades. I understand that there is a nexus among all the exchanges of the world. Trading is a preset course. It is not run on demand and supply theory. Operators create short trades and make rally. Once rally is over, buyers are liquidated. This is the market. No technical analysis or no indicators will work out. I think that the software has been designed to have access to stop loss details of both long and short trades. With these disadvantages, I don't think that the retail traders can make money. It is a white collar crime being committed daily with the support of the government. It is a legal gamble.Like (5)
Shiv
05 Nov, 2015
Hi Sir, I have been following you since the days I started reading Dalal Street (not a regular reader of DS but whenever I read I make sure I read your article). Your advices are very practical and unorthodox if I can say that. I have started to trade full time (its less than 2 months). I was trading previously also but for long-term and after many trial and errors I was able to or learned to set-up a good portfolio. But my problem is with intraday. Though I have a software which shows all the indicators to buy/sell, I understand now that it doesn't yield much. In this two months' period, I have almost lost 60-70k (which includes one or two call options as well). As you have rightly mentioned not to follow the news for trading, this is one of the areas where I lost money. SKS Microfinance...which declared superb results and even revised its guidance (ignoring CBI enquiry), I thought this would be a sure shot and bought few lots of call options, was a fiasco. Then comes problem with stop losses.. it is very difficult to let go a bad trade...emotional check..yes it worked few times and few other times I just let it loose, I was able to win those trades and the next time or same day I used to lose and get into the negative zone with that strategy. Then I tried to follow strict stop losses..even then most of the times see losing trades. Yeah, as you mentioned, movements are random... where I made money few days for example when 50bps rate cut was announced. It was pure luck on this day because on this day and previous days bank nifty was down. I was losing the trade even on this day when suddenly the news brought the change. I am mentioning it as pure luck, because if it had been only 25bps rate cut as the market was expecting I would have lost badly on that day also. Right, so, it would be of great great help if you can advice/suggest few strategies or checklist on intraday trading. Of course, not expecting a holy grail but a better method of building a trading strategy is what I am looking for. Thank you very much. Like 
sanjay deshpande
19 Sep, 2015
When the markets grow, advisers grow like mushrooms and vanish when it starts correcting. Being patient and consistent is the the key to success. Be with good quality stocks and treat them like assets. keep booking profit from time to time so that your capital is not locked any time. Best is SIP which keeps you unaffected by daily turmoil. How many advisers have really shared their bank statement to prove that they have actually earned in derivative market? how many are willing to bet their own money alongside you and guarantee returns? Think hard. If they are so expert, why they are not millionaire themselves? I am yet find one adviser who wants to commit his own capital alongside me and guarantee returns. I have always earned in mutual funds thru SIP route. Only you have to stay long enough to generate CAGR target. It will if you are patient and consistent. There is no shortcut to become rich. In equity also you need to adopt SIP route on good quality stock. Don't get lured by fly by trading advisers and operators. Options should be used only to hedge your profitable portfolio and nothing beyond. Remember Consultant Bulls cannot produce calf themselves. They have nothing at stake on their advice. Every dip big dip should be used to inject little extra and every big day should b used to take out little to remain afloat. You will enjoy. Don't get carried away. I learned this hard way. So I do not entertain any advisers any more. It is your money and you are the best judge and most caring for it. nobody else will. A paid CEO can never think like an entrepreneur. Because CEO has only his job at stake not his business. Taking risk of Rs. 100 million of some one else is much easier than taking risk of Rs. 1000 of your own. Thought process changes entirely when you risk your own money. Happy Investing. Best Regards, Sanjay DeshpandeLike (2)
keshav
30 Aug, 2015
iam not in trading but i have invested 50k with my friend1 year back now he is telling everything has lost icant return to youcan i enter trading and eatn lost moneyLike (1)
S.M Kumari
29 Aug, 2015
I always try to learn new things, but nothing works properly, recently i found a website www.unlocktrading.com, they described some trading methods for Crude and others, But when i back tested these, i again Failed. I think, discipline is more important and Quantity should be very small for risk management that i learnt as a good thing form this website. And also a lot form your websiteLike (2)
Maneesh Sharma
19 Aug, 2015
Dear All, The best way to earn money in the market is...Whenever you are using paid advices or tips. Kindly do the exact reverse of what they say. they see u will get more profit. Losses will be there but minimum.. There are other smart strategies too for positional tradersLike (1)
ag
10 Aug, 2015
I have lost 34 lakhs in trading in 2 years. Additionaly, some of the shares that I held in equity,Auro Pharma,JK Lakshmi cement,L&T , which I sold in panic at 11 lakhs, its value now would have been 35 lakhs. So, effectively trading has cost me 34+24= 58 lakhs. I am 30 and now just have a savings of 5 lakhs. I had poor strategies, no stop losses, not cutting losses and averaging at small gapings. In the last 2 months itself,I have lost 16 lakhs.With a lot of determination,I have stopped trading and closed my trading account. Healthhas deterriorated massively, and relationships have suffered .The hope is to somehow bounce back in life, now that I have financially gone 7-8 years behind. Its a very difficut jolt. The thing about trading is that legally it looks as the fastest way to gain money, but if there is no discipline,the consequence could be very severe. In my case 58 lakhs, and I did not even have much more than this. Had I had a few crores,I would have probably lost a lot more.Like (9)
Subramanian Ram
29 Jul, 2014
Hi Asad, I was trading commodities in MCX in a small way. As soon as I entered a position, i would immediately place a stop loss order. I was making money on some trades & losing on a few but was comfortable. One day I was short on Mini Zinc & trading without a stop. Suddenly there was a spike & the price went up by nearly 30 paise I averaged by going short again, but the rice still went up. I closed out both the positions & went long by doubling at a higher price. The market stalled and started reversing direction . I held on to the position till the expiry of the contract but unfortunately the price did not come back to the level where i was long & the exchange itself squared the position at expiry. So I feel discipline in trading is very important if one has to be successful in trading consistently. I would like to venture once again & shall be grateful if you can guide & give hints. Ram Like (4)
R S Yadav
20 Jul, 2014
You will not lose money if you combine your holding with options. There are unlimited strategies available. You can make around 2 to 3 % per month conservatively.Like (1)
Mahagaonkar R.P.
27 Jun, 2014
As you said, many times traders loose money as because of trading not based on strategy, they trades based on friends information's or emotions. I am also trading from last two years, and my trading based on information from Ventura securities. as because my D'mat account is with Ventura securities. I want to learn strategic trading. Trading must based on some strategy. I want to make sizable profit from trading.Like (4)
Chak S
26 Jun, 2014
Is it possible that the expert takes in a percentage of the profits/losses that an investor invests? In most cases the adviser takes the fee upfront/every trade, finally losses remain with the investor. Like (2)
Prasad
25 Jun, 2014
Halo Asad, I too lost lot of money initially as I was not using a proper trading tool and not aware of stop loss. Even now trading in some selected scrips in future its being compensated by making profit one day and loss other day. I really dont understand why most of the time stop loss is executed with in no time. Is it I am being cheated by some traders? Hope I will have some fruitfule advice, learning from you. ThanksLike (1)
Mervyn Fernandes
22 Jun, 2014
Traders loose money because they trade when markets are already at a high point and follow a strategy by just listening to their friends Like (1)
K.P.N.Nair
18 Jun, 2014
As you said, I am new in the trading business,only two or three years. I am doing it with the help of Agent, follow their directions,sometimes gain,sometimes lose, but, As you said, emotions are not dominating me, There is gain-Ok, loss-then also OK.-Running through an 'even path'. I hold this business as a side business, main is salaried job. I am trying to gain the secrets of this trading to continue on it full time when retire, very soon-in one or at the most two years-from Gulf. Thanks, K.P.N.Nair.Like (2)
K.P.N.Nair
18 Jun, 2014
As you said, I am new in the trading business,only two or three years. I am doing it with the help of Agent, follow their directions,sometimes gain,sometimes lose, but, As you said, emotions are not dominating me, There is gain-Ok, loss-then also OK.-Running through an 'even path'. I hold this business as a side business, main is salaried job. I am trying to gain the secrets of this trading to continue on it full time when retire, very soon-in one or at the most two years-from Gulf. Thanks, K.P.N.Nair.Like (1)
K.P.N.Nair
18 Jun, 2014
As you said, I am new in the trading business,only two or three years. I am doing it with the help of Agent, follow their directions,sometimes gain,sometimes lose, but, As you said, emotions are not dominating me, There is gain-Ok, loss-then also OK.-Running through an 'even path'. I hold this business as a side business, main is salaried job. I am trying to gain the secrets of this trading to continue on it full time when retire, very soon-in one or at the most two years-from Gulf. Thanks, K.P.N.Nair.Like 
K.P.N.Nair
18 Jun, 2014
As you said, I am new in the trading business,only two or three years. I am doing it with the help of Agent, follow their directions,sometimes gain,sometimes lose, but, As you said, emotions are not dominating me, There is gain-Ok, loss-then also OK.-Running through an 'even path'. I hold this business as a side business, main is salaried job. I am trying to gain the secrets of this trading to continue on it full time when retire, very soon-in one or at the most two years-from Gulf. Thanks, K.P.N.Nair.Like 
kibotomba
17 Jun, 2014
Because markets are made to loose, it is a natural rule logically Rich people are fewer than poorer. Thank youLike 
Pradeep
17 Jun, 2014
Dear Sir, You are providing a great opportunity to learn about the trading and market trends.. I am yet to ope my DEMAT acount. I think we can save ourslef from loss by resticting to particular amount of profi. the valu will be calculate on the basis of solid logic and study. THANK YOU SO MUCH.Like 
Ravindra Kumar Karnani
16 Jun, 2014
You ask :" Why most NEW traders lose money?" Your question would be better if you asked it without the word "NEW" : Why most traders lose money !? New one may make mistake for the first time but even the seasoned ones lose money in Stock trading for they repeat the mistakes they have been making! Surfing and watching various Financial TV channels is one of them. At times within 30 seconds you get 2 different views about Nifty and maybe 3 different Targets, one says Sell other says Buy ! The emotions take over their rationale thinking. Indiscipline is another enemy and so is lack of Money Management! (Risk Management)! Most who enter Stock Market come with a view of making money overnight. They are more prone to accept their Wins or Loss as a matter of luck. The minority who is there for a long haul and willing to learn from his errors will survive and triumph. As for me, I learnt the lessons the hard way after blowing my capital twice and then have consistently taken out returns in excess of 25% p.a. from the market in last 5 years. Like (1)
Pradeep Poddar
16 Jun, 2014
I a C.A and in my opinion i possess good (not Gr8) knowledge about the market and the reasons for it movements. I also analyse trends and understand charts. My advice is followed by my friends and relatives and more often than not they have always made money. But i have always lost money both in trading and investment. The foremost reason being initially i make a lot of money and start going overbroad and start overtrading. But when faced with huge losses, when one of my decision goes wrong, i fail to rectify it by not selling my loss making transactions. I keep the position open and the losses keep on mounting. In order to cover up my losses, i start selling my profit making positions and in the end am left with only dud stocks. Also, astrologically, i should not indulge in the stock market as my planetary positions dont support me. But still i continue to trade in stocks due to my interest in it and due to my feeling that some day i will make huge profits from trading/investments in stocksLike 
Pradeep Poddar
16 Jun, 2014
I a C.A and in my opinion i possess good (not Gr8) knowledge about the market and the reasons for it movements. I also analyse trends and understand charts. My advice is followed by my friends and relatives and more often than not they have always made money. But i have always lost money both in trading and investment. The foremost reason being initially i make a lot of money and start going overbroad and start overtrading. But when faced with huge losses, when one of my decision goes wrong, i fail to rectify it by not selling my loss making transactions. I keep the position open and the losses keep on mounting. In order to cover up my losses, i start selling my profit making positions and in the end am left with only dud stocks. Also, astrologically, i should not indulge in the stock market as my planetary positions dont support me. But still i continue to trade in stocks due to my interest in it and due to my feeling that some day i will make huge profits from trading/investments in stocksLike 
RS Rathore
16 Jun, 2014
I have lost in lacs(INR), for I was a dope then. Believed to what experts comments on TV channels. Without exercising my brains any more, I'd like now to follow to what you suggest/recommend. In fact, I've gambled a lot in BSE Equity. The reason to believe is that you will be suggesting/recommending scripts from small, mid & large caps for quite short term. I have become restless after I had opened my D-mat a/c and started trading almost all days without giving break to my horses.Like (1)
RS Rathore
16 Jun, 2014
I have lost in lacs(INR), for I was a dope then. Believed to what experts comments on TV channels. Without exercising my brains any more, I'd like now to follow to what you suggest/recommend. In fact, I've gambled a lot in BSE Equity. The reason to believe is that you will be suggesting/recommending scripts from small, mid & large caps for quite short term. I have become restless after I had opened my D-mat a/c and started trading almost all days without giving break to my horses.Like (1)
dev
16 Jun, 2014
I lost 80% of my capital in the 1st year of trading U.S treasuries. On analysis I found certain reasons why I lost. 1) No trading plan. risk-reward was not calculated; 2) never book losses as its a sign of inferiority and it questions your smartness(ego); 3) Get rich today. Prove your'e xtraordinary by trading more rather than waiting for trades which you understand.Like (2)
Dilip Patel
16 Jun, 2014
Yes, you are right....by following tips from any news letter to earn in no of days, I lost lots of money. And its without any knowledge of market's fundamentals. Actually to become much greedy or emotional about money is also one of the factor. That's all result in wrong decision. I hope and trust that your secret is not just like any news or tips. Thank you.... Like 
dinesh
16 Jun, 2014
dear sir .I am in this market for more than 30 years. but i couild not understand is how to get out of it after booking the profit. I know how to enter but not know how to exit. pl do advise dineshLike (1)

16 Jun, 2014
after trading on tips for several years, lost money during harshad mehta`s time. never learnt anything . shifted to m.f..s.after the 2008 down turn found equity master. though E.M. knows what to recommend ,they didnot ever understand the price movements. so, usually with their philosophy of not timing the market, they would recommend stocks at very high levels. so 50 % OF MY CAPITAL WAS WIPED OUT. I BLAME MYSELF FOR FOLLOWING THEIR RECOMMENDATIONS BLINDLY. THEY HAVE of course become wiser. i have always avoided the derivatives section.i felt it was pure gambling. i request you clearly state your recommendation in a separate paragraph, clearly stating what is to be done. raoLike (1)
BISWESWAR GHOSH
15 Jun, 2014
This is my experience in the last two years in trading. For average traders gains come only in bull market. Most traders gained massively during March to May 2014 due to the Election backed hysteria in the market. FIIs are the real players in the market. They first raise the market by gradually buying and thus leading the ordinary people behind their track luring them to greater targets and then suddenly they drop out causing the market to slide back and the general traders lincur losses. I lost nearly 2 lacs during the 1st year but gathered knowledge on balanced portfolio i.e. Losses in some sectors are made good by gains in other sectors. I observed that whenever Banks, FMCGs fall the Pharma and IT starts gaining and vice-versa. I concluded that they big players switch over from Banks/FMCG by booking profits and then start buying in Pharma and IT which by this time came to the lower point. The trading cycles show a sea saw game shifting from one sector to the other. The brilliant are those who can correctly guess when the switch is turned up and down. Anyway thanks to the Election time gains and I have recovered my losses although the real losses have to be yet counted like Brokerage, Taxes etc, electricity, blood pressure. Best I think is to invest over medium to long term selecting scripts based on strong fundamentals and to adjust timings of entry and exit by checking and comparing P/E, P/BV and also the Dividend Payout / yield. Like (1)
RAM AVTAR GUPTA
15 Jun, 2014
Like 
Kanishka
15 Jun, 2014
For me it's been a mixed experience...but I love the trends and the developing undercurrents in this uncertainty...I feel I have met the right advisor in you Mr. Dossani...Like 
vrajesh
15 Jun, 2014
first time did some trading on reliance and did not exit even after my stop loss passed. stopped trading since then Like 
SUMAN
15 Jun, 2014
1.people loose because of uncertainty as the stock market is spooked by the vested interest.Like 
Dr.Sachin
15 Jun, 2014
I lost around 12 lakhs in just 5 months. reasons:-1) subscribing to paid services of pathetic market companies. 2) not following stoplosses and hanging on to loss making positions that too in futures market with big lot size. 3) not holding profitable trade i.e. taking out small profits or holding it too long in greed. Though i would like to mention here--I had made good profit in cash market with holding delivery for short -mid term. So i believed "TRADING IS NOT MEANT FOR ME" But with profit hunter i am again very hopeful and gathering courage to trade in derivatives. Please help us make our fortunes. Looking for your valuable guidance and eagerly waiting the next issue.Like 
Babu
15 Jun, 2014
I feel the heavy losses in the market are due to avalanche effect created by first big loss. After the first loss logic goes for a toss for many many traders. Most of my friends find the the most stupid moment occurred after a bad miscalculation. " Find where you have lost" is good until you add immediacy to the adage to end up with more losses.Like (1)
Anjan
15 Jun, 2014
I stop trading as I am lost money in trading due to following the stock ideas from others like tv channels and broking houses. I think may be one of the reason. Second reason is I didnot do the proper analysis from my side. I think in trading we need knowledge about the trading techiniquesLike (2)
R S Chakravarti
15 Jun, 2014
It was 1999 or 2000. I had 200 shares of DSQ Software and 100 of Silverline Industries which I had paid Rs 3000 for (IPO price of Rs 10 per share). I could have sold them for Rs 2400 per share (DSQ) and Rs 1500 (Silverline). But a newspaper article and an Advisor both dissuaded me. The paper predicted that DSQ would go up to Rs 5000! I still have the shares. Their value is approx 0. That says something about the promoters.Like (1)
T. Balasubramanian
15 Jun, 2014
I started trading in stock mkt for the last one year. I am not a intraday trader, but on the other hand purchase when the market dips and sells when the boom comes. I also retain bluechip stocks and consolidating the holding. So far in my trading since my start, I only gained to an extent of 35-40%. And no loss sofarLike 
kannan
15 Jun, 2014
T was not interested in trading, since a wellknown fund manager had remarked in a meeting that 'aap ka future khrab hojayega'.But one broker convinced me to to trade and he offered to handle my account and fetch me 10percent returns per month.I had asked himto trade one lot to stat with.But he started with 2. I was also greedy.After three months I found that my investment was continuing to depreciate.The manager also had come with the Rm who made me to accept his offer.When iwanted to withdraw my authorisation, the mobile no.was not reachable.I was informed that he is on leave .When icontacted the manager, i understood that the RM had left the job.From then i stopped trading.For the second time ,I invested huge money with another broker who earkier was an analyst with a leading business channel , a member of the presidents delegation to U S, along with my friends and relatives.That also has gone into the drains.Like 
TS SADASHIVA
15 Jun, 2014
I lost my hard earned money by listning to many bad advises. I believed that the so called experts are giving good and useful adivises. But all in vain. Result is I lost my money heavily.Like 
P T Cherian
15 Jun, 2014
"Market movements are random". Are they really? When BJP won with absolute majority, with someone like Modi the prime ministerial candidate, wasn't it obvious that the market will shoot up?Like 
Ramesh Godwani
15 Jun, 2014
Most of the new traders lose money by listening to Market rumors and invest accordingly without analyzing the Companies Balance sheet . In past even I have lost too much of money by investing blindly following rumors and Brokers advice . I am having shares in physical form worth 10/- lakhs most of them delisted or below face value. Now I don't repent as I am having a Portfolio which is I am proud of after Investing in Market since last 30 years. I know long term investing in sound companies or promising looking small caps. give good return.Like 

15 Jun, 2014
with doing homework if we blindly invest on hearsay and over and above w/o stop loss, we are bound to loose our hard earn money Like 
Om Maheshwari
15 Jun, 2014
Dear Asad, I feel very happy to read your article"HOW TO MAKE PROFIT IN TRADING" I shall indeed be looking forward to your valuable advises based on real research. I am not a DAY TRADER but I am a long time Investor. I have started my Portfolio about 40 years back. I have gone thru lots of UPS & DOWNs. But followed one principal is not to churn your portfolio on loss. I can happily state that in these last 40 years my portfolio of only shares has done fairly very well. Yes not to the extent of appreciation in Real Estate Looking anxiously to your strategies. Om Like 
narayan
15 Jun, 2014
Once bitten twice shy, I bookd profit in x stock at 280 which gone upto 2000 I lost money in 2008 by hldng to a stock bought at 180 and did not book profit at 280 which crashd to 30Like 
Muthuswamy Rajasekar
15 Jun, 2014
I have lost money owning to the discipline I was asked to follow to book profit or loss on the same day when I executive order in day trading. I have discipline, but still reading the market movement seems difficult. Like 
Ramamurthy
15 Jun, 2014
From the response I have read,I believe that most of them have come from Day Traders.Have they misunderstood your message? My feeling is when you say trading I dont think you refer to day trading only.Can you please define the term trading you have used? I am not a day trader but an investor with a horizon of about 2 to 4 Years.Who are your target readers please?Like 
APPADURAI
15 Jun, 2014
I had a bad expericnce in the past and with a loss of all my savings due to my entry during the bad market periodsLike 
satish S Dabholkar
15 Jun, 2014
I have not made any loss since I have started my trading account.Twenty five years before when I started my trading account,I used to go through Maximum and Minimum price for 52 weeks of the selected stocks, which used to be published in daily BHAV copy published by BSE stock exchange. I purchased the sock at the reasonable price-between the range high and low and keep the stock-hold the stock till it reached my expected value.I know that you earn profit if you are having holding capacity and stock is healthy. Like 
Rajesh Vyas
15 Jun, 2014
Trading should always be in flow of the market, one should never try to go against the tide, we as trader always believe that we are the most smartest person and can not go wrong. In this scenario, we fail to accept the wrong decisions and tries to against the market which leads to wrong and emotional decisions. One should never be trading under fear to loose or BIG Greed to earn, as these will not allow you to trade prudently. Will be eagerly waiting for the next idea letter from the author. Like 
Navin Chand Gupta
15 Jun, 2014
I read your inputs with great interests. I am 75. I just have reasonable living to live in society. I had invested about 25 lac in shares /MF in most big known companies and MFs. I have not earned any real money except dividends. But not lost also in total portfolio. Experience is just luck works most times in decision making. Basic idea of investing in this line is to have near liquid cash to meet any sudden problems of health needing finance. But i do have urge to make atleast 4 lacs /yearly from these 20 lac portfolio otherwise why not invest in FDs and sit back comfortable. Is this target feasible? I have free time and good knowledge to assess businesses. N.C.Gupta 09899466424Like 
Navin Chand Gupta
15 Jun, 2014
I read your inputs with great interests. I am 75. I just have reasonable living to live in society. I had invested about 25 lac in shares /MF in most big known companies and MFs. I have not earned any real money except dividends. But not lost also in total portfolio. Experience is just luck works most times in decision making. Basic idea of investing in this line is to have near liquid cash to meet any sudden problems of health needing finance. But i do have urge to make atleast 4 lacs /yearly from these 20 lac portfolio otherwise why not invest in FDs and sit back comfortable. Is this target feasible? I have free time and good knowledge to assess businesses. N.C.GuptaLike 
Navin Chand Gupta
15 Jun, 2014
I read your inputs with great interests. I am 75. I just have reasonable living to live in society. I had invested about 25 lac in shares /MF in most big known companies and MFs. I have not earned any real money except dividends. But not lost also in total portfolio. Experience is just luck works most times in decision making. Basic idea of investing in this line is to have near liquid cash to meet any sudden problems of health needing finance. But i do have urge to make atleast 4 lacs /yearly from these 20 lac portfolio otherwise why not invest in FDs and sit back comfortable. Is this target feasible? I have free time and good knowledge to assess businesses. N.C.Gupta 09899466424Like 
Gopal
15 Jun, 2014
I did lost my trading account for many reason. First I did not use stop losses when I started trading in F&O Then , I realised the mistake and startrd using it. But I found later that I was losing out on making profit because most of the time stop losses getting executed. Then startrd hedging with options but that did not work too. If u could provide solution, eould be of great help.Like 
Gopal
15 Jun, 2014
I did lost my trading account for many reason. First I did not use stop losses when I started trading in F&O Then , I realised the mistake and startrd using it. But I found later that I was losing out on making profit because most of the time stop losses getting executed. Then startrd hedging with options but that did not work too. If u could provide solution, eould be of great help.Like 
Prasanna
15 Jun, 2014
I have lost 65% of my committed capital by handing over my trading account to a broker who promised guaranteed minimum profit above 12% and stop loss of 5%. After the loss, the broker washed away his hands, never took responsibility. I tried on my own few times. few times gained, some other times lost, resulting in net loss. Could never be sure of the trend or the limit to get out of trade. Truly random. I believe it is difficult to make money in trading. May be 5% make money while 95% loss.Like 
Satish Marathe
15 Jun, 2014
You havesaid truth. Market movements are based on randomness. Invester need to find out and study underlying trend in radomness. Looking forward toacquire guidence for investment in Midcap and small caps. Also guideance for structure of Investment profile. Satish MaratheLike 
Hiren Desai
15 Jun, 2014
I have lost most money due to not following stop loss and not exited from trade after stop loss triggered..also lost money due to giving my trading to Two portfolio manager in my trading life of 20 years..now I become investor with best research house EQUITY MASTER. Now from last 9 month I am recovering my 50% capital loss from Equity Investment and leaving trading.Like 
V.VIJAYARAGHAVAN
15 Jun, 2014
Sir, I lost money in daily trading because of following points 1.Judging the mkt movement of individual equities wrongly. 2.Bitof greedy ,fears , emotions . 3. Even though selecting entry right lose in waiting game . 4.Seeing the intra screen continusly by fear doing wrong thing & lose 5.Chasing the scrips which jumps & entry was wrongLike 
Rajan
15 Jun, 2014
Even though most of us are told repeatedly when to book profits and cut losses, we just don't do it expecting better things to happen. Hard way to learn that discipline is most important. Like 
Rajan
15 Jun, 2014
Even though most of us are told repeatedly when to book profits and cut losses, we just don't do it expecting better things to happen. Hard way to learn that discipline is most important. Like 
Madhu
15 Jun, 2014
Yes, I have lost much more than profited over a period of one year in intra-day and short term swing trading. I depended more on the advise of an 'expert' who has not been correct on most occasions. Its high time I learnt to read the market trends on my own and invest/trade on that basis. I look forward to your gyan to learn more as I go along. ThanksLike 
Sethumadhavan
15 Jun, 2014
Many are entering the market when it is high and refrain from the market when it is low.Like 
MOHIT
15 Jun, 2014
Primary reason is greed which results in poor risk management. Like 
piyush
15 Jun, 2014
most traders lose because they book profits very early and do not do that on loss.They go on holding to their lossLike (1)
Vincent.
15 Jun, 2014
I too lost my money because of bad advice and more so because I allowed my adviser to handle my account for few days owing to the busy schedule I was at . He wiped out everything of mine and disappeared leaving me high and dry. Like 
Pad
15 Jun, 2014
In technical STOP Loss is vital. Very often after our stop losses are breached we still hang on to the stock in hope.This should be avoided.Like 
JK
15 Jun, 2014
Most of the Losers blindly follow "Market Gurus"without taking the trouble to do their own analysis and "Follow The Trend" without an in depth dtudy.!Like (1)

15 Jun, 2014
After placing each trade, I would open my Bible and recite my favorite versus from the Psalms:"He leads to the green pastures, He leads me to the still waters". But by evening, He only led me to the broker's office to pay for the margin call. Only later on I realized that the trader on the other side had also said his prayers, leaving the Good Lord, totally confused on which side to stand by. Whatsoever, I am eagerly awaiting for the next issues of the Profit Hunter to hunt more profits, although so far it was the hunter who was hunted by Mr Market.Like (1)
Bosco Eremita
14 Jun, 2014
Traders lose money because they are overwhelmed by advice from "advisors", besides market sentiment suddenly going awyre. Most traders cannot risk being "stuck" with the same stock for weeks, even months, thereby panic, and dispose off their stock at a loss. Like 
SANATH
14 Jun, 2014
I TRADE MAXIMUM IN FUTURE BUT 1st 2 WEEKS OF THE MONTH I MAKE PROFIT AND LAST 2 WEEKS WITHOUT KEEPING STOP LOSS I LOSE OUT THE ENTIRE PROFIT AND GO INTO BIG LOSS. WOULD LIKE YOUR ESTEEMED GUIDANCE TO IMPROVE.Like 
jos
14 Jun, 2014
thx for narrating the true picture.. am also a strong believer that one can play safe in market if a bit careful and knowledgeable.. the returns may not be great.. but can earn better than bank FDs.. been trading in cash since 1998 in very low volumes.. a profit of Rs 50 per day was great achievement for me.. however with careful study could home on to few stocks and reasonably make profits utlilising the opportunities.. most of them slipped away due to my safe play.. still happy about it.. with a stock like amaraja which normally moves within 1 to 2 % up or down in one or two cycles per day one gets a chance to book profit if that days trend is predicted. i take help of the best five in the pre market which generally gives the indication.. once the buy/sell is done immediately put it up for squaring up/down 2%.. most of the time one is lucky .. else take delivery and hope for the next best day.. tatamot, lichf, LT etc are other shares i track.. request others experiences also may be shared..Like (1)
Tejas Master
14 Jun, 2014
Yes, It is true, I have lost my entire portfolio in 2008 Crash . Where I traded in Future without any knowledge , just on TIPS... Also, I did not book profits at the peak, due to emotional attachment of stock and thinking , the portfolio will rise further..Like 
vijay s
14 Jun, 2014
I lost most of the money I had in my trading account because of one single fact i.e. market is meant to fool you around no matter what you do. After burning almost all my money i realised that the only way to win it all back is that someone on my behalf playes just opposit to me and buy when I sell and sell when I buy. If someone can do this I bet he/ she can be a milioner in short span of time. This further confirms your finding that 90% of the newbees lose. And if this is true than why now play against these newbees and make 90% winning trades? Cheers!Like (1)
GP
14 Jun, 2014
Story of the new trader sounds so familiar to me...! Appreciate your initiative on sharing through the new letter. God Bless you.Like 
hk shastry
14 Jun, 2014
I think most traders loose money because of greed and always optimistic of market.Yesterdays market crash i lost a fortune as i was waiting for my target in almost all the scripts.and as the target achieved raise the target further .set the target and once reached get out. thanksLike 
Shrikant Govil
14 Jun, 2014
Hi Asad, I blew up my trading account by seeking advise from an adviser. Later on I realized that these advisers were using retail investors like us to make brokerage income because advise was free as we use his brokerage and depository. The advises were all laced with intention to create market for dud stocks or potentially dud stocks. I had lost quite a bit of money; roughly about USD20000/- RegardsLike 
Shravan
14 Jun, 2014
In my view, real time monitoring and pop up of computed analytical result of stock prices, in case of intraday trades is necessary. Stochastic s/candles and so on are found to be tough ones to understand/practice. Take my trades yesterday. Dabur, DLF, tata global, dr.Reddy DLF has taken away all the profits I made in the other two and caused additional losses. I was under the impression that elf couldn't fall fall that huge. I have been watching and trading these stocks for many days daily. I am not knowing anything why it could have fallen from 245/250 levels to 200 levels. Likewise, the 320 option call of join dal steel. Has come down from 39 to 9 in which I entered at 19. News/software/guidance/studying /understanding technicals are a must.Like 
vishnu agarwal
14 Jun, 2014
very well said . we waste our energies finding reasons for mkt movements whereas there are ' n ' no of reasons and beyond the scope of a laymen. We wud be much better off if we acknowledge the movement and can develop the ability to immediately rework our qwn trading strategies.Like (1)
Ganesh Lal Moondra
14 Jun, 2014
Very trueLike 
nelli
14 Jun, 2014
Great start and truths mentioned to start a new seriesl - I believe that we have much more interesting observation from your side that will help us allLike 
Aditya
14 Jun, 2014
Hi, Liked your article and waiting for next one. I never met a single trder in life who made money in stock market and same thing happend with me also. Looks like Its game of big pockets guys like FII / DII and there is no place for small investor/Trader. All strategies are good on paper but not so effective in market. Trading requires so much learing and expertise which is lacking in small trader/investor. ThnxLike 
Soman Mani
14 Jun, 2014
Although i have invested profitably, I have never tried trading, as I could not understand derivatives.Like 
SANDEEP AGGARWAL
14 Jun, 2014
I started trading since 2007. I had two accounts. I had invested Rs. 4 lac in each account and got marging of 40 lac + 5 days. Within 6 months I doubled by money in trading RNRL, RIL, RELINFRA. But due to collapse of market in 2008 I had margin dues. So lost all my money and left with Rs,1,50,000/- only. Big disappointment but not loose the hopes, withdrawn money from Providend fund again started with Rs.1,50,0000/- + 2,50,000/-. But this time no margin. Luckily I purchased SATYAM 10,000/- shares @ Rs.13/- and sold them @ 80/- so convered my capital. But trading without margin the profit is very less. Then I purchased SPIDER software EOD in 2011. I start trading with that and start buying midcap and small cap with the help of BOLLINGER BAND and SUPER TREND but not entered in INDEX FUNDs. But it also not so fruitful. Not losing money but also not earning. Like 
Turab
14 Jun, 2014
Have never traded before and being a new trader will read and understand what your concept and philosophy is there before venturing out.Like 
SANDEEP AGGARWAL
14 Jun, 2014
I started trading since 2007. I had two accounts. I had invested Rs. 4 lac in each account and got marging of 40 lac + 5 days. Within 6 months I doubled by money in trading RNRL, RIL, RELINFRA. But due to collapse of market in 2008 I had margin dues. So lost all my money and left with Rs,1,50,000/- only. Big disappointment but not loose the hopes, withdrawn money from Providend fund again started with Rs.1,50,0000/- + 2,50,000/-. But this time no margin. Luckily I purchased SATYAM 10,000/- shares @ Rs.13/- and sold them @ 80/- so convered my capital. But trading without margin the profit is very less. Then I purchased SPIDER software EOD in 2011. I start trading with that and start buying midcap and small cap with the help of BOLLINGER BAND and SUPER TREND but not entered in INDEX FUNDs. But it also not so fruitful. Not losing money but also not earning. Like 
Ansar
14 Jun, 2014
Thanks for profit hunter. I used to engage in day trading. I made little from it, rather lost all I made from stocks. I completely stopped say trading. Hope your letters will give me understanding and confidence for future trading. Like 
Lenin C
14 Jun, 2014
I like the way the first letter has been composed. From start to end, I feel like reading more and more of these kind of letters. Only a frustrated and failed trader will understand the "undercurrent of this letter. I am looking more of this kind. Awaiting your next letter to learn the thing in "correct ways" Thanks & Regards Lenin CLike 
S.K.Kayal
14 Jun, 2014
I lost lot of money because I followed advice from various paid and free web sites . Almost 90% of them are wrong . Two websiites ( paid ) are good at least 50% of the time. But curious thing is that mostly when I follow them they are wrong . But on the days or for tips I follow them they are right . Sometimes on the days they are right I just book a little profit and quit and then I find that had I not quit I would have made good profit . I subscribed to equitymaster also about 5/6 years back - but lost all the money used for Purchasing shares as per their tips.Like 
s nagaraja kumar
14 Jun, 2014
This article by Asad Dossani is one of the finest I have read about the randomness of the Stock Market. I am no big Investor but have been watching with surprise, many a time with agony the market movements . In his simple but effective style Asad Dossani has untied the mysterious knot. Candid and straightforward analysis.of the Market movemnts. Eager to keep reading more such articles from Asad Dossani and learn and implement. s.nagaraja kumarLike 
jerry k thomas
14 Jun, 2014
I am a short term trader usually makes losses from trading and I couln't find the exact timing of trading.When I sell ,share price rises or viceversa.I could'nt get the actual profit of tradingLike 
S K Gupta
14 Jun, 2014
I tried, only in a small way. I gained in a few trades, but lost many more. Then I realized that the system is so designed that Broker and Govt both made more money than me. Entire money invested by me and and entire risk is mine and they make more money. Then I stopped.Like (4)
PRAFUL D MEHTA
13 Jun, 2014
YOUR COMMENT THAT PROFIT AND LOSS IS PURELY DEPENDS ON LUCK. AND YOU ARE HUNDRED PERCENT RIGHT. I AM NOT A TRADER BUT DOING MY OWN INVESTMENTS AND I AM IN THIS MARKET SINCE LAST 30 YEARS. I HAVE SEEN MANY UP DOWN IN MARKET DURING THIS PERIOD. BUT LUCKILY I HAVE NOT MADE ANY SIGNIFICANT LOSS IN THE MARKET. I HEAR ALL THE ADVICE BUT NOT FOLLOWING ALL BUT FOLLOWS ONLY THE ONE WHICH I PERSONALLY THINKS OKEY. THANK YOU. BUT I WILL BE HAPPY TO LEARN FROM YOUR NEWSLETTER. Like 
Girdhar Gopal Arora
13 Jun, 2014
Dear Asad, Hello! I have gone through today's profit hunter's letter. The very idea of going through the flow of market is really good. But it abstain me most of the time from clicking on to a trade. I keep on watching the movement on chart and drawing lines over it to find out the range within which the price is moving and in order to catch the movement from boundry to boundry I missed it generally. Can you help me out of this problem. Regards, G.G.AroraLike 
Surya
13 Jun, 2014
So very true! Straight to the heart and mind kind of stuff! Good learning. Like 
P M Soori
13 Jun, 2014
Traders loose because they think they are wiser than the market. Markets move in its own direction on which we have no control. We should stay put till market comes to our expectation. And profit from it. Like 
Alphones
13 Jun, 2014
Really, this is a wonderful lesson from you. In fact, I have also burnt my money in the past. Do not know what to do, what to buy and when to buy? In fact, Equity master helped a lot, at least to buy fundamentally strong scripts. I used to be eagerly waiting to read your weekly news letters through Equity master. Thank you.Like 
pravinlal
13 Jun, 2014
New and small traders lose money... a. they do not know when to get in the market They enter late when the market is over-priced and they try to follow the herd. Having chosen the right stock if one patiently watches its the price movement, volume, etc and also look at the charts of price movement over past three years he will slowly get the confidence over time to know when to buy. b. the most difficult problem I face is when to sell and get out of the market. Say following election market shoot up like a boom rang within a week. One of my holding was Union Bank entered arond Rs 130. I sold half at 155. Another half sold at 190.... Hower It immediately crossed 200 and better. I could not believe my eyes. I could not understandthat the stock which languised around 110-115 following my entry can just double within a fortnight due to MODI MAGIC. c. I thought the present euphoria will be short-lived and got almost 95% of my portfolio liquidated making an average 30%. Had I had guts to wait I would have easily reaped another 20-30%. But Ia happy and waiting in the wing for market to settle down or correct.There is n too high BP to enter enter at this level. For it could be more easier to lose. d.Just like Modi effect one need to watch international events... War and natural happening like El Nino...Currency and Government Announcement. Market cannot be trusted and can change overnight to worse or better. e. I always wait and see when prices a specific stock is being pumped up. When you feel uneasy to enter a particular stock do not enter your instincts may prove to be right. Like 
Sudhir Vinyak Kubal
13 Jun, 2014
Dear All, Yes it’s true that most of the new trader lost their money in Share bazaar! One of me also but not now. As you said, we should start with small investment & increase later. Most important, don’t give any place to greed. 1st decide with yourself that what you want to earn from trading. Once you reach your target, you must sell. Remember; do not love with any securities. Share counts only when you sell it or it’s just a fridge investment. Work hard to grow your money. Quality stock must be studied. Don’t look in to penny stock. From many recommendations, select few on fundamental & capacity of your pocket. Our Guru says, Invest only that much that such investment will not affect you in any manner, even stock market close for 10 years. You must spare some time daily for this purpose & if you can’t then don’t enter. You will be looser. Money doesn’t come easily. You must have passion about your trade. Once you enter in to your passion phase, believe me you will be millionaire soon! That’s my words of experience. Before I end, I must thanks Equity Master for their great support on the path of my success! Have a nice start with lots of best of luck from me. Sudhir Vinayak Kubal Like (1)
industrader
13 Jun, 2014
Hi Asad, I agree with you 100%. The primary reason for losses are some kind of wrong advice. However, who's to be blamed? The one losing money. If I did not understand the market and "followed" someone's words and made an investment decision without giving thought to the idea, I am stepping on a mine! I am looking forward to your series. Thanks!Like 
deepika desai
13 Jun, 2014
Mostly tried to trade on tipsLike (3)
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