Is Trading a really hard Business or an easy Business?
Rajat Kulshrestha
Equity Research analyst in Livelong Wealth | Valuations, Transactions & Equity Research| 175k Followers on Linkedin + Quora | MBA'21 Top Voice for Investment Banking | Got Featured in Economic times
It is a really hard business if we look at the data points published by SEBI clearly says,?SEBI is?89% of traders have incurred losses in FY2021-2022?and the?average loss is around Rs1.25 Lakhs. But, on the other hand, the?average profit of 11% traders is of Rs1.5Lakhs.
That means, 9 out of 10 traders are not making any money, and the remaining 10% have made around Rs1.5 Lakhs.
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The success rate in this profession is 10-11%?&?Let's compare it with the other professions are:
The effort-to-success ratio is quite good here in this profession but only for those folks who are ready to put in 1-2 years with a pure heart and mind dedication.
I think anyone who started trading is going to lose money for several weeks or months in the beginning, This is a career that pays a lot of money! and everyone here wants to make a lot of money.
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Here in this career, you are competing against not only extremely smart people but also with Systems ( big Algos) and it is essentially a ZERO SUM GAME!
so, in that case. you are trying to take money from really really smart people who are eventually trying to take it from you. when you start off they are going to win and you're going to lose and but if you have the discipline, followed the proper risk management by using Stop loss and Master Psychology is something you can do!
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And that's a wrap for our Is Trading a really hard Business or an easy Business! We hope you found this newsletter informative and useful in your journey to becoming a more informed Trader. If you're new to technical analysis, take some time to practice and refine your skills. And if you're a pro, keep honing your craft and exploring new strategies. With dedication and practice, you'll be well on your way to mastering the art of technical analysis.
Thank you for reading, and we'll see you in the next newsletter!
Disclaimer:?I would like to clarify to the readers that I am not a SEBI registered investment advisor, and the analysis presented in this newsletter does not constitute a buy or sell recommendation. The content provided is for informational purposes only, and it is recommended to consult a financial advisor before taking any trades based on this analysis.