Trader X -

Net-worth - 5 Cr
Trading capital - 25 lakh

Trader Y -

Net-worth - 30 lakh
Trading capital - 25 lakh

Trader X take risk of 2% per trade and he makes about 30-40 % Return on trading capital per month,
Whereas Trader Y only risk 0.25% per trade and he makes about 3-4 % on Trading capital per month.

Trader Y saw how much trader X is making with the same amount of capital that he has.
He is frustrated with his mediocre results as compared to Trader X, though he don’t know the fact that Trader X Is only trading with 5 % of his total net worth.

Trader X has much more risk taking ability in Rupee terms as compared to the Trader Y because he has higher net-worth.
Trader X will not have much impact when he goes into deep Drawdowns , 40-50% where as if the Trader Y goes below 15% DD , it will have deep psychological impact on him.

Even if the Trader X makes 100% return on his trading capital , turns 25 lakh into 50 lakhs ,
it will be only 5% gain on his total net-worth.

Where as Trader Y who is using almost 80% of his total capital on his net-worth as Trading capital, so even if he makes 5% on his trading capital , it will have significant impact on his Net-worth.
Learning-

1. Don’t compare your trading results with anyone, because you don’t know there total capital, there source of income , Risk taking levels, Mindset

2. Anything is possible in markets, True, but it’s also a fact that The more % you make the more risk you have to take,
Sometimes you just don’t see that risk, but its there.

If someone making 10-20% in a day, then you accept it or not they are also taking the similar risk, Leverage is a good tool,but like Driving a car at 200 might not take you to the hospital this time, but eventually it will.
3. Market is a Money making machine, not in a single day, not In a single trade but only over a long period of time.

As @anandableanand say " There are old traders and there are bold traders, but there are no old and bold traders".

Cheers,

Trader knight

More from Trader knight

More from Trading

TradingView isn't just charts

It's much more powerful than you think

9 things TradingView can do, you'll wish you knew yesterday: 🧵

Collaborated with @niki_poojary

1/ Free Multi Timeframe Analysis

Step 1. Download Vivaldi Browser

Step 2. Login to trading view

Step 3. Open bank nifty chart in 4 separate windows

Step 4. Click on the first tab and shift + click by mouse on the last tab.

Step 5. Select "Tile all 4 tabs"


What happens is you get 4 charts joint on one screen.

Refer to the attached picture.

The best part about this is this is absolutely free to do.

Also, do note:

I do not have the paid version of trading view.


2/ Free Multiple Watchlists

Go through this informative thread where @sarosijghosh teaches you how to create multiple free watchlists in the free


3/ Free Segregation into different headers/sectors

You can create multiple sections sector-wise for free.

1. Long tap on any index/stock and click on "Add section above."
2. Secgregate the stocks/indices based on where they belong.

Kinda like how I did in the picture below.

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