Boost Profits with These Trading Tips.
Stock Market Trading is very simple.
You may do Stock market trading sitting on the hill and you can do trading for 1 hour every day if you wish.
You will not find it difficult to generate a lot of money as well.
It might seem to us that we are sure to make profits from stock market trading.
There is no ending in stock market trading, and you can go on adding as many positions as you like, but your capital is going to be spent in the long run.
Stock market
Individuals have one target in front of them and that will be to earn crores of money.
For this, they begin their quest of trading.
But it might not be known to you that only 10% of people are able to make profits.
It means that this game is not as simple as it might appear to be.
stock market Trading is the most difficult way to earn money in a simple manner.
So, what will the few people do, who are able to make profits? What are the wrong techniques of the remaining 90%? I will discuss this topic in the forthcoming article.
Here, I will discuss as many as 3 trading tips that will prove to be useful to you.
But, you need to follow these guidelines on a regular basis; otherwise, it will not provide you with the desired results.
Systematic trading
What do you mean by the term “system”? It means a set of rules.
Trading happens to be an open field where you will be able to do whatever you feel like.
Here, you don’t have any boss, any co-workers, and no customers either.
None will tell you that you ought to make improvements. You must handle everything by yourself, no matter what needs to be done.
We need to make a framework or a set of rules within which we will work.
We need to plan our day when we start working in the morning.
You will find it quite difficult to generate cash for the long term if you do not have any particular system.
It is a fact that some individuals might follow certain indicators or some price actions or they might have some methods based on which they will perform their buying and selling.
Whatever this process might be, it’ll be a good idea to write it down.
It will guide you on when to purchase and when to sell.
In a nutshell, you have to perform trading based on rules.
Trade Log
This particular point is extremely important, and you need to follow it regularly to see some drastic improvement in your trading.
There are very few people who maintain records of all the trades done by them in the evening.
If you have not been doing it right now, then please start doing this from tomorrow.
Make sure to put all your trades in Excel – when did you make the entry, when did you make the exit and what was the reason for you to make that trade? If you do this for one month, then you will have the records of all the trades done by you for one month.
This will help you to understand what exactly your pattern is, and what is right or wrong that you are doing.
It is a fact that nobody will tell you regarding all these, and you need to create all these records yourself.
You need to be disciplined when it comes to the stock market.
Risk management
Many people might think that trading will become simpler if they are able to manage risks.
But what exactly is risk management? Here, I have mentioned some tips that can be applied in risk management.
The first thing that you need to do will be to apply stop-loss.
Once we enter a trade, our brain informs us that there will be profit.
But, it is also a fact that there might be loss too.
Therefore, it is essential to apply stop-loss or a limit to making losses.
We might expect that we are going to make a profit, but it might always not be the fact.
Secondly, we need to focus on position sizing.
First, we make a purchase, and then we follow it with another purchase with the hope that we will make a profit.
And, we go on doing this. But things might start moving in the wrong direction, and we might start making losses.
Position sizing will help you to decide your success as a trader.
Whenever you are going to make a trade, think that if you incur a loss, then will it be okay for you? You might feel that this loss might be quite significant for you.
In that case, your position is quite high and you have to reduce it.
The third tip will be to focus on the maximum loss for the day.
Being an intraday trader, you need to focus on how much loss can you afford per day.
There is no limit to trading, and you can go on adding more and more positions, but in that case, you are going to spend your capital.
But you should not do this.
So, please take care how much loss you will be able to afford. Also, create a framework within which you will be able to work.
In case you have figured out your loss on the day in the morning, and you have already reached that limit, then that’s all for the day.
You should not do any more trading for that day.
You will try again the next day, but that’s all for today.
All these tips that I have shared with you, please try your best to apply them to your trading as well.
Or else, you will not be able to achieve success as a trader.
Here, I like to mention that your success as a trader will not depend only on those few hours invested by you.
A lot will depend on what you are doing beyond those few hours.
You need to make some changes in your lifestyle as a trader.
Let me talk about these lifestyle changes in the following paragraphs.
The first thing that I will talk about here will be the social media.
Social media helps many people to share their experiences with other people.
But, there are also some people who tend to misuse social media.
For example, you will be able to do trading sitting virtually anywhere.
And, you need to work for only one hour a day to earn lakhs of money.
But, in reality, you need to work much harder.
Trading happens to be a serious profession just like any other business.
In case, you don’t pay respect to trading as well as time, it will not provide you with cash.
So, never think that trading is quite simple and you will be able to earn lots of cash very easily after listening to social media.
On the other hand, you need to stay focused and give everything to trading.
Many people might be sharing trading screenshots with you, and you might think that earning a lot of money will not be an issue whatsoever.
But, here I will inform you that 99% of these screenshots are fake.
There are many apps available these days, which will be able to create fake screenshots very easily.
So, never think that trading is very easy after seeing all these screenshots.
Some people might inform you that stock is going to go up tomorrow;
but, it is not possible for any person to know beforehand when the stock is going to go up.
In case someone provides you with any guarantee, then he is nothing but a cheater.
And, you should not learn from a cheater, but from a trader.
The second tip provided by me will be concerned about physical activity.
Trading happens to be a stressful profession.
You will not be able to avoid stress while doing trading, and it will be possible to counter stress with the help of workouts.
It will be a sensible idea to perform swimming, running, go to the fitness center, do yoga, and so on.
Always make sure that you are taking care of your health on a regular basis, and that you are performing some sort of physical activity.
Unless you do these types of workouts, you will not be able to do trading after a few years because you will suffer from excessive stress.
The third thing is what exactly is trading.
Here, I would like to mention that trading is a mental game.
If your mind is not okay, then you will not be able to achieve success with trading.
The best workout for your mind will be meditation.
It is essential to do meditation if you like to maintain a calm and strong mind.
There are so many meditation apps and meditation videos available on the market at present that you need not do anything special.
just sit down with your earphone for 5 to 10 minutes, and that’s all! It will provide peace to your mind.
If you think that you cannot do meditation, then make sure to perform breathing workouts for 5 to 10 minutes, and this can make a big impact too.
You will not get the result overnight, and you need to do this consistently for several days.
