VideoPsychology6 min read
Why most people lose money in the stock market
Most losses come from one pattern: buying late after a rise and selling late after a fall. Here is why the crowd does it, and how a plan breaks the cycle.
Trading psychology
Trading journalhar trade ka record aur uska kaaran
A written record of every trade with the reason for entry, stop, target, result and what you felt, used to find and fix repeating mistakes.
A trading journal is a log you keep of every trade, beyond what the broker's statement shows. For each trade you note the setup, why you took it, the planned stop and target, the actual entry and exit, the result after costs, and how you felt before and after. A screenshot of the chart at entry helps. Reviewed weekly, the journal reveals patterns that are invisible day to day: that most losses come from trades taken after 2 PM, or from a particular stock, or from entries made against your own rules. Suppose your journal shows that trades taken on impulse lost ₹18,000 over a month while planned trades gained ₹6,000; the fix is obvious. The journal is also where win rate, average win and loss, and expectancy are calculated. Most traders who do not keep one repeat the same mistake for years.
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