Futures and Options traders often experience beginner's luck and may escalate their lot sizes too quickly, potentially leading to overconfidence and significant losses, especially if the market is in a bull phase.
"F&O traders would do their own study. Typically, in the first trade, they trade only with one lot. Ok? And we know they have something called beginner's luck and they will succeed. Now they feel are I one in the very first trade. Now the next trade I want to take is with two lots. Again they succeeded. They take their third trade. Third trade with lots to four lots. And they are keeping on doubling their lot size with every single trade. Assume that they are winning in all first first four, five six trades. There could be a possibility that the overall market is in a bull face. And that is the reason why they are actually winning in their trades. At one point and time they are going to get this feeling off. Sometimes it seems that Punisher is God. They are going to slip from confidence to overconfidence."
