This post will be with respect to Indian stock market. I have lost around 11k INR on a trading capital of 12k in just 2hours. Due to my simple negligence, my whole trading account got blown up.
Below is the screenshot of my final position.
And let me tell you, there is no limit on how much money one can lose if one commit the same mistake again and again.
Let me show you my order book
When you will see above order-book, you will note that once my Stop Loss got hit, I entered the trade within 1–2 minutes and lost 3 times. Stop loss is meant to protect losses, therefore do wait and analyze the situation before entering into same trade again.
Even if you enter in opposite side of the trade, there are high chances that you will lose money. Therefore it is highly recommended that stick to your trade setup.
Takeaway from mistake
1. Never do revenge trading. I have lost good amount in investing in PCJ, therefore, I badly want to recover my losses. The market is not bothered by anyone and it doesn’t know that I have made or lost money.
2. Wait for confirmation before entering into the trade. I got so much excited and panicked while trading that I was not even willing to wait for sometime after my Stop Loss got hit. S
Guys, it is very easy to blow up the trading account but it is very difficult to earn that same money. Do not fall into the trap of making easy money. Because there is none. Keep learning and keep analyzing your mistake and finally keep improving.
I hope this has helped you.