Daily, many newbie traders get lured into profit screenshot charades organized by telegram channels all around India. Showing big sums of money in a green colour scheme almost gives these newbie traders a mini-orgasm. All of this leads to these new entrants logging on to their trading terminals and taking trades without any backtested strategies. But when we talk about experienced traders, there’s a massive difference in the methodology and trading style. This article talks about those very things. We will share what changes from 0 to 10 years when you keep trading and investing consistently in the market. 

Superficial Returns – Expectations Vs. Reality 

Most retail traders would keep their hard-earned money in bank fixed deposits for mere five percent returns per anum. That very retailer expects 100% return from the market in their initial trading month only. Now, if it isn’t superficial, what’s superficial? 

Now talking ground reality, even seasoned traders only expect 10% returns per month on their overall capital. Professional traders only expect not more than 10% per month on overall capital but not just one trade. Of course, there can be trades where your ROI gets about 100%, but that’s a once in a while thing and requires consistent, precise judgment. 

So a realization from 0 to 10 years for any trader or you would be – not to expect extraordinary from Mr. Market. Be humble, and accept what the market gives you with happiness. In a nutshell – “Jo mile, woh apna, baki sab sapna…!!” 

Fundamentals & Technicals – Expectations Vs Reality 

Initially, when traders are voyaging into the market in their first year, they feel that fundamentally good companies would help them earn quick money. This is the single most reason why people lose money or stuck their money into stagnant low-beta stocks. 

The realisation hits everyone hard after some years when people know that even to make money from fundamentally strong stocks, technical analysis is paramount. 

Let’s take the example of our beloved ITC. Fundamentally, ITC is a solid company with a diverse product portfolio and consumers of every spending class – whether they are lovers of luxurious hotels or purchasing instant noodles. Now, if anyone who would’ve gone long at wrong levels in ITC would have hit their stop loss. 

Want to know why? The chart is clear cut, making the double top pattern, now you need to see the chart doesn’t need to show you an exact textbook double top or ‘M’ pattern, but you’ll have to spot it abstractly. Along with double top, the volume was also decreasing, still going long would burn substantial capital. 

After ten years of experience, one would smoothly observe all these signs and definitely place technical analysis over fundamental analysis in their priority list.

Averaging Down – Expectation Vs. Reality 

Another major problem of novice traders is that they have too much hope. And there’s only one problem with too much hope – it leads to expectations, and expectations always disappoint…!! 

Let’s understand this with a scenario – a novice trader enters a trade with a system stop loss and target. Ten minutes into a trade, the price starts moving towards the stop loss. As and when fear and greed step in. The fear of price hitting the stop loss and the greed of saving the capital that will go into triggering the stop loss. Novice traders, what they are, use emotions to counter this situation and keep on adding to their position. Why do they do so? To bring down the overall average price. Everything is somewhat okay here, but then greed plays its role, and they don’t want their stop loss to hit. Most of them would entirely remove the stop loss, and others would shift it down even deeper. Nine out of ten times, their deeper stop loss would hit, or the trade would keep on showing negative P&L. 

Doing this doesn’t help any new trader. Moreover, it dents their mental and financial state. After spending many years in the market, one would know to Never Average a Losing Trade.

 Option Buying Your Way to Richness – Expectations Vs. Reality 

Nowadays, social media and telegram traders have led novices to believe that option buying is the whole and soul way to make good money. Seeing this trend, every newbie trader goes on to buy options, primarily out of money. 

Although option buying can make good money, the probability of that is limited, and that too when your analysis is precisely correct. After experiencing the various colours of our market, a trader would get to know that, yes, option buying is very powerful, but when to take option buying trades, or when to change the momentum to option selling. Why? Because premium decay is the number one foe of an option buyer, but it’s an ally of option sellers. Experienced traders know how to shift gears from intraday cash to option buying to positional and swing trading to option selling trades. 

And one thing is for sure; when a trader turns into a pro, they don’t get up every morning looking to buy options and double their capital in just one trade. 

Breakouts & Minting Money – Expectations Vs. Reality 

Here, we would talk about some intermediate traders who know that breakout stocks give momentum and money inflows. But an experienced trader would know that they should always enter a breakout position after a successful retest. Along with this, pro traders always take a look at the volume action and price action, whereas novices miss out big time on that. Checking all this before entering trades helps pro players avoid fakeouts and successfully ride the wave with conviction. 


From avoiding fakeouts to trusting technicals, ten years in the market would teach you a lot. So do you have to spend ten years in the market and keep burning your hands again and again? Well, no… You can always start learning at the earliest. Join Trading Cafe India to get the crux of long years of experience to make your trading smoother than ever.

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