Betting everything (or almost) on a single trade with the aim of doubling your capital and getting flushed by the opposite market and your trading account melting like ice cream in the sun is an example of a situation that often happens to traders who think they can control the market and May be the king of trading.
A trader does not control the stock market
A trader does not decide whether the stock market will rise or fall, he cannot always be right and many traders find this difficult to understand. They think that they can get their hands on a miracle trading strategy that allows them to trade 100% profitably and as soon as they start generating profits, they gain a lot of confidence, feel invincible and take high risks that are enough to make up for their small errors. leads to loss. . A trader cannot know exactly what lies behind the rise or fall of the market, he does not control it and must accept it first or risk being violently slapped as explained in the introduction.
A trader has no certainty about the stock market price
A trader can predict, analyze the market, but he does not know for sure whether the price will rise or not. Sometimes he will position himself too late, sometimes he will position himself and nothing happens in the market, thus sometimes he is able to take trades that are not very high or profitable. So it is important to understand that a trader does not have control of the market and losses exist and are part of the game.
Take the market and exploit it
Once aware of the fact that he has no control over the market, the optimization of trading strategies and money management will be effective, then the trader will do everything to enter the market to maximize his profit and minimize its risk. A trader’s objective will be to be profitable while taking calculated risks.