Learnings from Aug 31 and Aug 18

1. Unpreparedness for extreme situation / scenarios - lack of adjustment trade plan

2. Taking trades that you are not fully convinced enough (Sep series short straddle based on suggestion from PR Sundar) 

3. Lack of conviction / stickiness to the plan (sep 1)

4. Tendency to take the revenge trade as soon as possible - it is a very common behaviours to scout of revenge trades to cover up the losses. First of all,we need to understand while we took profits with smile, we should also take losses without too much regrets. Losses should give us learnings and not regrets, because at the end of day it is you who made losses not some one else - hence don't get too harsh or angry on yourself and take revenge trade . Secondly, whenever you are taking losses it means like market might have moved violently and  it would hit your stop loss. Which means that markets are volatile and most likely it will stay like that for some time- even if market shows some form of stability- we need to be careful and wait for couple of more days  to take fresh trade. hence, it is prudent to wait till the volatility subsides for you take trades, probably in this way you will recover the losses at slower pace, but you will definitely recover the losses, while in revenge trade there is high probability that you will lose more. Remember losing capital also means the losing the chance of gaining return from the lost capital. Hence we need to absolutely sure of recovery trades and if possible be additionally conservative in these trades

5. Do not look at other profitable trades when you are making losses and get carried away- People tend to showcase only he profitable trades- this is the feeling even i get when i make profit- i want to tell the world that i have succeeded. But for the viewers who are seeing these profit announcement (only) , we tend to think that the trader is making is profit while we are losing the money which either leads us to lose confidence on ourselves and quit trading or pushes to take aggressive trades to overcome the losses fast and lose additional money. Please remember , everyone makes losses- even if they show that they are making only profit - so it be, we don't know how much they have invested or losses they have to overcome to reach this stage. Hence don't get carried away. It is like after seeing a car overtaking you in a highway , you tend to speed up in a revenge- we tend to ignore that driver skills, car capacity, their background and state of mind. Hence for our safety- we should avoid all these distractions and purely look at those announcements from learning perspective and move on only with our plan.

6. Taking trade based on the current market movement due to FOMO (fear of missing out)- Markets are alway available for us to take profit- while timing of entry and exit decides the profit % , wrong timing and emotional decisions lead to loss of capital. Most of the times decisions taken by seeing the ticker are the decisions induced by release of dopamine which is not always the best decision - sometimes it may be correct but more times it will wrong, and when it goes wrong , regret sets in and it puushes us to book losses as knee jerk reaction, Hence even if it results in losing some profit by no taking the trade , do not let your mind take a decision for taking unplanned trade during the market hours- this will also help in increasing the will power of the mind and reduce the guilt thereby help you in sticking to the market

7. Never take trade at volatile time of the day

Find root cause of the above mistakes and decide on rules to stick to it so as to mitigate from making the mistake again