My methods and suggestions to win in Stock Market / Day Trading
• KNOWLEDGE (attained through your research and studies)
•BALANCED or CONTROLLED EMOTIONS
• FAITH in your technique that you had discovered.
• HARD WORK
• YOUR RESPECT TOWARDS THIS BUSINESS.
{(i.e.) Do/consider trading as a business, not as a number game/gambling}
You may start as a Gambler anywhere in any business but end as a pro to attain consistency
&
LUCK - (In my terminology,
that is what happens when preparation meets opportunity)
Whatever your business may be, these 5 qualities lead you as the best in your field.
Particularly in Stock Market these qualities make you as a perfect trader and a wizard in near future.
As per the saying ‘Practice makes a man perfect’,
I want my co-traders, friends and the readers to practice the above-mentioned stuffs for consistent winning and to develop the confidence in them.
Personally I do practice still to develop more & more…
I want you all to practice things before you enter into day trading so that you can start & win even with the micro investment of Rs5000/- like our Rakesh Jhunjun wala (the man who is known as the Warren Buffet of India)
Unlike other business, trading in Stock Market makes you understand that every day is a new day..
(i.e.) Everyday here you learn a new stuff..
Every day is a challenge..
Everyday is a newborn baby
It induces,challenges,every minute your brain,emotions,nervous system, and belief and tells who you are at the end..
& that is why it has become an interesting business for many and a sickening one for some people…
I belong to the first category and love this business to the extent I choose this for my daily bread..
I don’t insist or try to advice you to follow my way, but if you are already in this business, follow some rules and that is the intention of the writing.
Because I’m fully convinced that
“ONE DOESNOT CHOOSE THE STOCK MARKET BUSINESS rather STOCK MARKET CHOOSES ONE & ‘THE ONE’ UNDENIABLY”
Here are some suggestions to become a discipline trader from my experience…
Are you trading because you want to trade?
Consider trading a business not a game.
Are you not trading?
This is the opposite of trading too often. You may be so scared
of taking a loss that you avoid trading altogether.
If you get stopped out of several stocks, walk away. Paper trade until the profits return.
Follow the system: Would you be making more money if you followed your trading
signals? Understand why you’re ignoring the signals you receive.
Don’t overtrade: Sometimes the best place for cash is in the bank. You don’t HAVE
to trade.
Learn from mistakes: Review your trades periodically. It’ll uncover bad habits.
Focus on the positive: The loss your suffered today pales to the killing you made last
week.
Ignore profits: If you find yourself getting nervous about a winning trade or making
too much money, then concentrate not on the bottom line but on improving your
trading skills. Get used to making too much money.
Obey your trading signals: Otherwise, what are you trading for? Plan your trade and
trade your plan.
Don’t trade when you’re upset: This also goes for being too excited.
Abandoning a winning system: Don’t become bored with your winning system and
search for new, more exciting ways to lose money.
EVOLUTION OF A SUCCESSFUL TRADER
Gambler: This is the oldest trader’s ancestor. He was naive, highly emotional and addicted gambler. The gambler perceived the market as his casino-like entertaining arena. He bet large and he bet often. His goal was to get rich quick. Most, if not all, of his capital was quickly distributed to more evolved traders.
• Hunter: He came to understanding that markets are not random, but quite predictable. His quest was to find a single technical indicator, which will make him rich. The hunter spent countless hours back testing expensive software algorithms and other people’s methods. Unfortunately, most of his capital was promptly distributed to more evolved traders. A great deal of traders stayed stuck in this stage of development for a relatively long time.
• Analyst: He gave up the quest for “holy grail”. He came to understanding that the market is much more complex and dynamic place, so he applied his analytical skills to conquer it. The analyst developed better understanding of market interdependency and correlations. He was able to develop sophisticated methods for identifying low risk/high reward trading opportunities. Unfortunately, he was not the master of his emotions. He would sell his winners too early and hang onto losers for too long. His capital was distributed over time, at relatively slow rate, to highly developed traders.
• Manager: At this stage, our ancestors got grip of proper money management technique, which enabled them to control their emotions in the market place. The manager was extremely systematic in his decision making process. He fully understood importance of active account management, position sizing and capital preservation. Unfortunately, he was often under-capitalized, which affected his bottom line via high commissions and other cost of doing business. In addition, he could not commit to trading full time. Although, he was not net loser, his results trailed those of professional traders.
• Professional trader: The final stage of trader evolution. Properly capitalized, fully developed and highly motivated, the professional trader takes a full advantage of his predecessors. He is aware of his weaknesses, so he dedicates time and energy to work on them. He is humble, unemotional and self-sustaining. His only goal is to trade well.
Now tell me
Which stage are you at pals?
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