What is Avoid scalping?

If you are a beginner you may be in trading you have just started you have put some initial capital also put 5 10 20 thousand I will tell you to avoid scalping, now What is the meaning of scalping that in a very short time frame 1 minute, 2 minutes or within 5 minutes you have traded and sold, see your accuracy increases on larger time frames. 

I don't want you to be impatient, if you keep typing, you will become impatient, and you will think that instant profit, instant loss, so if you get used to instant, then understand that when we talked about investing, we did compounding. We talked about the Rule of 72, and we talked about years, so it takes time, making money is not as easy as a snap, whether it is investing, whether it is trading, it takes time, and it takes analysis. effort and patience too, warren buffet says the Stock market is an instrument to take money from impatient people and give money to patient people.

Rule Number One

Avoid scalping initially when you become a pro you can do anything but if you are a beginner then I must guide you then I will tell you to avoid scalping. 

Rule Number two 

Now if you are thinking of investing money that I invest, I invest money to trade, then I have an initial question, how much are you ready to lose if you say that my 20 25000 goes to zero? Even if it happens, it will not matter to me, it is important, everyone's risk appetite is different, we are talking about risk management, now I am here, I can say that I can take a loss of 50 lakhs, I can take 1.5cr Maybe I can't take yours, maybe some person says that I can bear a loss of 10 crores, brother, I can't take it, everyone's risk appetite is different, some person says that if it makes a difference to me from 10000, then you initially You have to decide that how much money goes out of your pocket, even if it becomes zero, you do not mind, then you initial You should put that much capital and give another good analysis of it. 

How much money do you want to earn every month from the stock market, now you can say whatever you want, you can say that I want ₹ 10000, then I would like to tell you, initially you only have to expect 5% of your monthly capital, if you make 10%, then a lot Good but your expectation should be that if you make 5% of your capital, then 5% of 200000 is  10000. If you want to earn 10,000, then your capital requirement will be 200000 which is ideal. You can earn 10000 even by investing one lakh, it is not that it is impossible in a month, but the expectation has increased a lot, 10% capital, you think you are talking about making 110000 if any person is chatting with 10 crores. He is expecting to make one crore every month, and 5000000 is also a lot for him, someone is talking about spending 100 crores, how much he must be thinking of making 100000000 in 1 month, you have to think accordingly. 

If we reduce our expectations, then we reduce our risk sometimes and it is necessary to minimize the risk. 5% according to me is a good expectation to have. You have to see that if your expectation is 10000 then you need a capital of 200000. Now the question is whether you are ready to lose 200000. You will say that this is too much, then your expectation to earn 10000 is also too high because you think that if you do any business, will you be able to earn 10000 by opening a shop of 200000. You will say that you will have to put items to earn 10000. Even if that takes five 1000000, then the stock market is also an instrument of the same type, if you are a business, then it is very important to set your mind in this way, if you do not have a demat account yet, you can go to upstox and open your demat account for free.

What is Never Average? 

What many people do whether they are trading whether they are investing I told you that this psychology is also important for investing If you invest in a stock that was 100 and it decreases to 60, then what do you think, should I buy it again at 60, earlier I bought it for 10000, now I buy it for 10000 and now I buy it for ₹ 60 Maybe now it will go up from here then the profit will be 80 then no problem friend there will be no significant loss then you see it is 40 then you should not average in the stock market.

I will tell you its reason, if you look at Yes Bank, if a person is running average, then where is 400 and the proverb came up to ₹ 5, where are you averaging, everything will be looted, the stock price can be zero. One thing is important in the stock market, see what I have written here, your analysis, you should have it before trading because if you take it once, you will get two Things will happen eithermy stop-loss will be I will exit or my target will be hit there is no such thing as average. Either exit the stop loss or target just before that do the analysis you have to do, after investing money don't analyze, now either exit after the stop loss or you directly wait for your target one more thing no one likes is that someone is perfect nobody is perfect. If there was someone perfect who knows everything, someone says that they know everything in the stock market, then there is no need to have a thing called stop loss, if he knows what is going to happen, and he will not put stop loss. Why there will be such a thing as stop loss? There is nobody who knows everything so always being humble means I am telling you from the start that I do not know everything, I am trying to focus on what I know and try to learn something new every day.

We make mistakes and then we learn from mistakes so many people are making a lot of money means you and I can't even imagine so we always have to be humble and learn and if you want to bring this learning attitude then you have no need to copy. Some made a profit of 5 crores, some made a profit of 50 crores, and some made a profit of 500000, so I want to see what is my risk appetite, my risk appetite was 200000 and I want to make 10000 from 200000 I made 10000 I want to see my trading and investing are very personal game. You can take the risk if you made 500 which is also good depending on how much capital you traded with how much capital you invested doesn't matter.

It is this much that we don't have to show it to anyone and I told you before also that people take loans to show themselves off, take loans, trade and invest it. Recognize that if you go out of your limit if you stretch, then you will come into a problem, and then the risk has to be minimized, as much as you can afford, it is not okay to lose more than that.