“I am a Trader, Should
I Trade?” Such misconceptions we have heard many times during trading. Well,
this is may be the biggest mistake made by traders. The trader’s job is not
only to trade but trade in a right way based on trading tips
or strategies. Trading is just like business. It is a
business of making profitable trades. In order to achieve this - trader needs
to understand that how he/she can do his job well. Let us discuss on some
essential points a trader needs to achieve.
Develop Discipline-
People use to condemn
that market is not going well, the market is always right. Never go
against the market. The price on your computer screen should be the guide.
Always have respect for the market and do not keep your eyes away from the goal.
Market prices are
volatiles at times and the only self defense a trader can employ is Develop Discipline.
It is the discipline and passion for the markets that keeps a trader in the
market for a long time.
Be Patience-
The trader has to wait
for an opportunity patiently. Therefore, this is a business where you need to
keep patience (wait and choose a good opportunity). With the help of few good
trades you can earn big bucks. Going to trade each small move (read
overtrading) only leads to under performance, stress and frustration. The goal
is not only to trade but trade well with beneficial opportunity.
Preserve Capital-
In trading you can see
and observe that you get the highs and lows very quickly. In these highs and
lows, traders usually make silly mistakes like getting overcautious in lows and
throwing all caution to wind in the highs. A professional trader must never get
carried away or bogged down whether success and failure. Remember, trading is a
journey and one wrong decision or mistake can get you out of business. That’s
why, as a rule, traders should never get carried away and keeps an eye on
trading capital all the time.
While trading, it is
better to miss an opportunity than loses capital sometimes. The focus should be
on to gain money while preserving capital.
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info on Stock Tips and Indian stock market tips.
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