Although, MCX and NSE trading is an excellent way to make good money at the comfort of your home, there are some traders who lose a lot of money. To help you out here are some of the reasons why these traders lose their money:
Lack Of Experience
Many MCX and NSE trading accounts have a demo account where you practice with virtual money. The unfortunate thing is that some traders are too eager to start trading with the real money thus they don’t take full advantage of the demo account. The result is that they lose almost all of their invested money. To avoid losing money you should ensure that you first master how to trade using the demo account before you use a real account.
If demo trading is not provided by your broker, you can do paper trading. Check out importance of paper trading in MCX and NSE here…
Having Unrealistic Expectations
It’s good to be ambitious in life, but you shouldn’t be over-ambitious. Many new traders get into the market hoping to make millions so that they can quit their day jobs. Due to their big ambitions, they tend to risk huge amounts of money with the hope of making huge profits. If the market goes against them, they end up losing large amounts of money.
Failing To Control Loses
Due to ignorance or lack of knowledge, many MCX and F&O traders fail to control theirs loses. When the market goes against them they lose almost all of their money. To avoid this you should ensure that you add stop-loss instructions to all of your open trades.
Being Indecisive Traders
It’s common for some traders to open a trade and when they don’t make a profit within a short period of time they feel that they make the wrong move. Most of them close the trade and open another only for the trade to reverse and go back to the initial direction. This results in these traders lose money.
To avoid this you should pick one direction and stick with it. When you open and close a trade every now and then you end up losing small bits of your money and eventually find that you have lost all of your money. That’s why at McxNiftyTips.com we focus on QUALITY rather than QUANTITY. Traders get at the most 2 tips per script/ commodity during the day.
Using Trading Systems
There are many MCX and NSE trading systems on the internet that purport to help you trade. The truth is that most of these systems don’t work and you end up losing your money.
Most of the system are so confused that every 30-60 minutes they keep changing Buy-Sell signal. If the system itself is so much confused you can easily assume the quality of this signals.
You should know that there is nothing like free money, you need to work hard for you to get any money.