How do stock traders get investors?
A trader will forgive whatever mistake he makes in his trading career, But instead of booking small loss, if he takes it for investment, never forgivable. If not today then tomorrow the market will give of punishment.
There was a guy, he used to help his father in the cultivation of that teak trees. His father always used to get all the trees cut when he was getting a good price to earn more profit. He saw a lot of profit in farming. He decided to take up farming for his career growth. He had neither experience in farming nor any information. He got into farming in the pursuit of profit. And he decided to cultivate paddy.
He did whatever he wanted to do in the first month of farming. He was very excited, so he did a great job. That year the rain was also right, for which everyone got to see a lot of farming in the field. After a few weeks, it was time to harvest. One time was fixed for harvesting the crop for everyone. But due to good harvesting, prices have fallen for the availability of supply. Then this first farm boy did not tolerate it. He decided not to harvest. And he decided to wait few more days.
Other farmers harvested and sold their crops. Some of them came and explained it to him. But he didn’t listen to anybody. He wished that he would wait for a few days when he got the best rate, then he would harvest and sell the crop. This was the decision that he learned from his father through the business of teak trees.
The result of this, when he cut the farming, then he took the machine at his own expense for rent. Due to heavy rains, the crop did not turn out as well. It happens because of one reason. It was the result of not getting the harvest at the right time.
And if we relate this thing to the stock market then. People come to make money in trading. Just Like Paddy Farming. If the profit becomes less or if there is a slight loss, then he does book it. Like the boy above, he likes to apply the formula of teak trees in paddy cultivation. Selecting the wrong stock, doing the wrong trade, even this is not that big a mistake, But the implementation of the profit strategy of a teak tree from the cultivation of paddy can prove to be a huge mistake for your capital invested.