Dear Friends,
There is something I want to share from my own experience and my heart.
After talking to many traders on social media, I have realised that there are three common mistakes that every person who newly joins the stock market ends up making.
1. Whenever new traders see that a stock is going up continuously, they feel FOMO (fear of missing out) and end up buying the stock, hoping that it will continue to go up. The stock rarely goes up after they buy.
2. After a huge fall, if the price calms down, new traders start to think that it is time for a reversal. They think, “The price has already fallen so much; how much further can it fall?” Truthfully, most of the time, it is not a reversal but a consolidation.
3. Whenever price goes against the direction of a new trader’s position, the first thought they have is to average it down. Averaging a losing trade is a bad idea because it shows overconfidence and a lack of experience. If you were so sure about how market would behave, why didn’t you buy it after it fell instead of buying where you bought?
Note these three mistakes down and stick them on the wall of the room where you sit and trade, so that whenever you are about to make those mistakes, you can remind yourself to stop.
The truth is, you cannot save money in order to become rich or financially free.
Nowadays, a simple house costs ₹70-90 lacs, and medical expenses, school expenses, everything is rising uncontrollably.
Suppose your salary is ₹50,000 per month and you save 100% of it. You don’t buy food, don’t pay rent, don’t pay child’s school fee, assume you have zero expenses and save your entire salary.
Even in that case, it will take you 10 years to reach ₹1 crore and over 21 years to reach ₹5 crores.
How do you imagine yourself getting rich by saving money, unless your salary is ₹2-5 lakhs per month, and even then you live frugally?
There is only one way to become rich or financially free, and that is by increasing your income so much that it automatically gets saved like what happens with me.
You should spend at your maximum capacity and still end up saving more than 99% of people simply because there’s no more place left to spend money.
Saving money cannot give you the life you want. You have to find ways to increase your income.
You will always try your best to make your child hang around with only good clean studious people so that your child also becomes like one of them.
Apply that rule on yourself too - Talk to only those people who only talk about trading, like what happens in my students group. Soon, you will also get influenced and become a better trader.
What I just told you is a cheat code that god developed inside humans and you should be utilising it as much as possible to your advantage.
