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Many inexperienced traders are enticed into profit capture charades conducted by telegram channels all over India on a daily basis. The sight of large sums of money in a green colour scheme virtually induces a mini-orgasm in these inexperienced dealers. As a result of all of this, these newcomers connect on to their trading terminals and place trades without using any backtested tactics. When it comes to seasoned traders, however, the process and trading style are vastly different. That is exactly what this post is about. We’ll show you what happens when you trade and invest regularly in the market from 0 to 10 years.

Expectations vs. Reality in Superficial Returns

For a paltry 5% annual return, most retail traders would keep their hard-earned money in bank fixed deposits. That particular retailer anticipates a 100 percent market return in their first month of trading. What is superficial now, if it isn’t that?

In truth, even seasoned traders can only expect a ten percent return on their total capital each month. Professional traders demand a monthly return of no more than 10% on their total money, not just on one trade. Of sure, there are deals where your ROI approaches 100%, but that’s a rare occurrence that necessitates persistent, exact judgement.

So, for any trader or you, a realisation from 0 to 10 years would be – don’t expect anything special from Mr. Market. Be modest, and accept what the market has to offer with joy. “Jo mile, woh apna, baki sab sapna…!!” in a nutshell.

Expectations vs. Reality: Fundamentals & Technicals

When traders initially enter the market, they believe that investing in fundamentally sound companies can help them make quick money. This is the most common reason why consumers lose money or invest in low-beta equities that are stagnant.

After a few years, everyone realises that technical research is crucial even when investing in fundamentally sound stocks.

Let’s use our beloved ITC as an example. Fundamentally, ITC is a robust corporation with a diversified product portfolio and customers from all walks of life — whether they like luxury hotels or instant noodles. If anyone had gone long at the wrong levels in ITC, their stop loss would have been hit.

Are you curious as to why? The chart is apparent, forming the double top pattern; nevertheless, you must notice that the chart does not have to show you an exact textbook double top or ‘M’ pattern; instead, you must spot it abstractly. Despite the fact that the volume was reducing in tandem with the double top, going long would still result in a significant loss of cash.

After ten years of experience, one would easily see all of these indicators and would absolutely prioritise technical analysis above fundamental analysis.


Expectation vs. Reality: Averaging Down

Another key issue with new traders is that they have an excessive amount of hope. And there’s just one problem with having too much hope: it breeds expectations, which inevitably disappoint…!!

Let’s look at an example: a beginner trader places a trade with a system stop loss and objective. The price begins to move near the stop loss ten minutes into a deal. When fear and greed take over. The fear of the price hitting the stop loss, as well as the desire to save the capital required to activate the stop loss. Novice traders, being what they are, react emotionally to this situation and continue to add to their position.Why do people behave in this manner? In order to reduce the overall average price. Everything appears to be in order here, but greed takes over, and they don’t want their stop loss to be struck. The majority of these would abolish the stop loss totally, while others would lower it even further. Their deeper stop loss would hit nine times out of ten, or the trade would continue to exhibit a negative P&L.

This isn’t going to benefit any rookie trader. It also has a negative impact on their emotional and financial well. After many years in the market, one would realise that a losing trade should never be averaged.

Option Expectations vs. Reality in Buying Your Way to Wealth

Option buying is now widely believed to be the most effective technique to generate money, thanks to social media and telegram traders. As a result of this tendency, every beginner trader goes out and buys options, mostly out of pocket.

Although option buying has the potential to make you a lot of money, the chances are slim, even if your analysis is spot on. A trader would learn that, sure, option buying is very effective, but when to take option buying trades, or when to convert the momentum to option selling, after experiencing the various colours of our market.

Why? Because premium decay is an option buyer’s worst enemy, but an option seller’s best friend. Traders with experience know how to switch gears from intraday cash to option buying, positional and swing trading, and option selling transactions.

And one thing is certain: when a trader becomes a pro, he or she does not wake up every morning hoping to buy options and double their money in one deal.

Expectations vs. Reality in Breakouts and Money Minting

Here, we would talk about some intermediate traders who know that breakout stocks give momentum and money inflows. But an experienced trader would know that they should always enter a breakout position after a successful retest. Along with this, pro traders always take a look at the volume action and price action, whereas novices miss out big time on that. Checking all this before entering trades helps pro players avoid fakeouts and successfully ride the wave with conviction. 


Ten years in the market would teach you a lot, from avoiding fakeouts to trusting technicals. So, do you have to stay in the market for ten years and keep burning your hands over and over? No, no, no… You can always begin learning as soon as possible. Join Trade Cafe India to gain access to the nuggets of years of expertise that will make your trading run more smoothly than ever.

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