How To Become A Successful Trader?
The ratio of how many people are successful in trading keeps changing with time. But you should understand that most retail investors make losses in trading. Only professional traders and big institutions make money in trading. Retail investors are not successful in trading due to their lack of understanding and knowledge. So let us know how you can become a successful trader.
1. Become a professional trader
If you are a retail investor then you will have to become a professional trader only then you can be successful in trading. Professional traders follow the big players in their trading decisions and make money with them. If you want to become a professional trader then you will have to work according to the rules. Spend as much time as possible reading charts and learning where the big players enter and exit.
2. Follow your trading system only
Retail investors do not make any strategy of their own. Seeing the strategies of others, they start following them and when they suffer losses, they start following someone else's strategy. Stick to your only strategy and follow it only. You need to understand that there is no such strategy in the stock market that works 100 percent. You should not be concerned with what others are doing. If you want to become a professional trader then just focus on your strategy and keep working on it.
3. Learn to control your emotions
If you have emotions regarding your capital, then for your information let us tell you that emotions have no use in trading. Trading becomes very easy for the one who controls his emotions. Some retail traders use more capital and are also afraid of losing capital.
It is normal for everyone to have emotions towards their capital but emotions do not work in trading. You trade with such capital whose loss does not make any difference to you. By doing this you will be able to control your emotions. By having emotion control you will be able to last longer in the trade.
4. Never hold losses
Retail investors often remain in trades even during periods of loss. They feel that the market will move in their direction and they will start making profits. The biggest mistake in trading is holding losses. Due to this, your entire capital can become zero in a single day. Learn to time your losses and profits and exit at the right time. If you repeat this mistake again and again, you will never be successful in trading. There are profits and losses in trading because it is a business. If you keep sitting with the losses then it is common to suffer losses.
5. Do not run after compensation for the loss
It is often seen that retail investors make repeated trades to cover their losses. If you cannot bear the loss and go to cover it, then your capital will become zero. As we told you earlier also, treat the stock market like a business and there will be both loss and profit in the business. If you want to make only a profit in trading then you should stay away from trading.
6. Do not force trade
Some people make losses in trading and lose money every day in their insistence on earning money. You don't need to trade every day. Market trends keep changing every day. Those who think that they will get something or the other from the market every day, then those with such thinking are not successful in trading. If you do not find a trade as per your system then you should not force the market. If you try to force a trade, you will mostly see losses.
7. Stick to your risk and reward
Risk and reward play the most important role in trading. After taking the trade, just keep in mind your risk and reward. Decide in advance how much loss you have to make and how much profit you have to make. If you don't do this then you cannot make money from trading. For example, if you take a risk of Rs 500, you should get a profit of at least Rs 1000-1500. Only your risk reward will make you successful in trading.
8. Follow simple things
For your information, let us tell you that simple things work better in the market. If you think that by filling the charts with indicators you will become a trader, then you are mistaken. The more complicated you make the chart, the more difficult it will be for you to make trading decisions. Learn simple things and follow simple things. You can learn anything in the stock market but follow only that.
Good habits of successful traders
- Identifying the footprints of big players and trading.
- Do not enter into a trade without logic.
- Taking trades with less risk and more profits.
- Making your trading system even better.
- Just following your trading plan.
- Preparing for trading the day before.
- Keep trailing profits to make big profits.
