Some questions to consider as you review your last years trading results and plan for the upcoming year

I fond the following questions posted by YTC are very helpful while reviewing.

USP - United Spirits Limited seems to be in the final leg of the 5 wave down move

USL (earlier noted here) completed 4th wave up move and is in its 5th wave of the down move. This 5 waves may be noted as wave 'A' of the larger correction. This may find support near 1985-1800 range. This could be a very good range to buy this for the corrective move up in the form of wave 'B'. Further it may correct the entire down move from 4082 which started from March 2015 taking over 20 months. This corrective move may go towards 2800 to 3300 taking over 1 to 2 years.

USP Elliott Wave on a daily chart:

Loss aversion

Loss aversion also explains the behaviour of gamblers (and day traders and even stock market investors) who become risk seeking immediately after experiencing a string of losses. They will do almost anything just to “get back in the game.”

This tendency almost all the times causes traders to taken undue risk interms of :
1. Taking a trade which has a very poor setup.
2. Risking more capital than their system allow them.

As a result of these the trader will end up making further losses. This is a vicious circle. Sure recipe for disaster. A trader or an investor need to identify these tendencies and should have strict self imposed rules to resist themselves from doing any of these. That is the only way to create wealth and preserve it.