Summary of "2. Setting realistic expectations"
In the video titled "Setting Realistic Expectations," presenter Pratik discusses the importance of having realistic expectations when engaging in Technical Analysis and Trading. He emphasizes that setting unattainable goals can lead to undue risk and potential loss of capital. Here are the key wellness strategies, Self-Care Techniques, and Productivity Tips shared:
Key Strategies and Tips:
- Set Realistic Expectations:
- Understand that doubling your money in a short time frame is unlikely.
- Aim for a return expectation of around 12-13% per year, which aligns with the Nifty's CAGR return.
- Risk Management:
- Avoid taking undue risks to meet unrealistic expectations, as this increases the probability of significant losses.
- Managing risk is crucial; it constitutes 99% of Trading efforts.
- Trade Frequency and Patience:
- Don’t expect daily Trading opportunities; it’s normal to have days without trades.
- Recognize that having no position can also be a strategic choice.
- Understanding Trading Timeframes:
- Technical Analysis is typically used for short-term Trading, with holding periods ranging from a few minutes to a few weeks.
- Intentional Trading:
- Each trade should have a clear intent, including exit strategies like stop-losses or profit targets.
- Continuous Learning:
- Focus on learning and mastering Trading skills over time rather than seeking quick wealth.
Presenters/Sources:
Category
Wellness and Self-Improvement
