How to Lose Money in Stock Market? -Thinking Contrary.
This a contrary thought. Whenever most of the people attempt to make the money in stocks, they lose. What will be the consequences if we try to lose money and actually act to lose money? In fact, the trick is to make money by understanding what a loser do to lose his money and how we can walk in opposite direction to make money in stock markets.
Loser try to profit but he makes mistakes and lose money in the stock market. Now, we will plan to lose money and make the mistake that loser can make to turn the table of the game. I have my previous blog Why do People Fail in Stock Market !, that explains failure psychology that leads traders to lose money.
Fortunately, we don’t have to face any of failure psychology as our strategy is clear. WE WANT TO LOSE MONEY. We own a failure psychology and want to lose money. If someone tips us to buy the stock, we might sell it. Keeping the “lose” factor in mind, we will act upon it very sincerely and (over) confident to lose money.
Before a person (a loser) starts losing money, he should decide the terms for it.
On every trade a person will try to lose the determined portion of money and he has to fix the losing amount on each trade.
On every trade he has to dream and expect the particular amount to lose and if he successed to lose money he has to close the trade by taking loss on the trade and look for the another loser.
Same way, if he has a profitable trade he has to hold until a trade turns out to be a loser.
A person will lose money in trades only, not through high volume and paying high brokerage.
A person neither need to be experienced and knowledgeable nor he need to be educated himself to achieve success. (he wants to be a failure)
There are no tips and no advise to lose money. So a person do not need to watch the television experts nor read newspaper for any type of fundamental and technical analysis of the stock markets.
How common trader lose money due to his hope and fear? And how contrary thinking works for you?
Generally, a trader book a small profit and hold the losing position in hope to turn out the trade into profit. Here, with thinking contrary trader book the small losses and hold the profitable trades. So, he would make small losses and big profits.
A trader gets tips, evaluate fundamentals, watch the charts and make his positions in the market. He fails to assume future news and upcoming events. In fact, the price and valuation of a share is a reflection of what other people believe. Contrary thinker do not get involve because he wants to lose money.
A trader buys a stock when the prices fall in hope of rising prices, assuming that it is cheaper than other stocks and it is under-valued. And the same way he inclined to sell the stocks when the prices are high, assuming the prices are over-valued. On the contrary, a person who wants to lose money tends to sell the stocks when the price fail to maintain his level in hope to lose money and buy the more shares at top prices (which may not be a top) of stock that can help him lose money.
A greedy trader can stack-up more and more losing positions whereas in case of contrary thinking person will stack-up profitable trades.
Contrary thinking is not easy to adopt as every human being is motivated to make money only. Also an unconscious mind can create chaos due to your double thoughts of losing money and making money. Your unconscious mind know the trick that by way of losing money actually you wants to make money and unconscious mind will not let you think as the common trader have the real feelings of Hope, Fear and Greed.
