For many, trading in stock market is really a delightful opportunity. It successfully tempts everyone no matter who we are; for sure we can make good money from this thing. Well, earning money is not easy, so ultimately will it be so easy for me to make money from stock trading? You must have heard one fundamental story of stock trading that ‘For becoming a successful stock trader, buy a share when it is at its low price and sell it when it reaches its high price’. If it is so simple, why people lose money here? You may also have heard the argument that ‘Trading is only for smart people’, if it’s so, a trader with the highest IQ must have been the richest person in the world.
In point of fact, success in trading does not depend on whether you are smart or an average person. Rather it depends upon your attitude, your practice, dedication, discipline and your approach towards the markets. Let’s take an example of cricket; you may learn all types of shots that to be used in different bowls that sounds good but expertise comes only when we are committed to learn and practice it day after day. Basically, learn and practice. In order to become successful as a stock trader, keeping an aim of money following you will let you master the art and business of stock trading well. Well, keeping up with that aim, below are a few of the many proven ways for a profitable stock marketing.
#1. Don’t trade without trading– We never drive a vehicle in traffic areas unless and until we are trained. Warren Buffet, one of the best investors in this industry, says, “The dumbest reason in the world to buy a stock is because it’s going up”. Try to gain knowledge and information about this game before you enter it. You can enrol for a course or you can hire a professional or mentor basically, and try to learn about rubrics of this business as much as you can.
#2. Don’t trade without a plan– Stock trading is a business, it’s your business and when you handle any business you don’t make decisions unless and until it is having a solid foundation and good technical analysis. Try to analyze the market, make proper plans and then buy, hold or sell the stock.
#3. Don’t trade for a business becoming very rich– Of course, stock trading is a best opportunity to earn good money. But risk is the price you pay for it. It may happen sometime that we are in a position that has potential to wipe out our entire capital in just a single trade. It’s better to make small consistent profits and stay in the market for the long run than to take one wrong trade and become negative about the market.
#4. Don’t always trade on advice– No one is perfect in stock trading, even Indian stock trader tycoon, Sir Rakesh Jhunjhunwala must be making some or other mistakes. Trading in the stock market with someone else’s advice may prove fatal most of the time and is not going to give you any success. The success you will get by doing this will be for short term but for a long-term, no one guarantees at all. Take responsibility for your own trading decision.
#5. Maintain your trading journal– Try to review your good and bad trades just like any sportsman watching his videos to review what he is good and bad at.
#6. Read, Read and Read– Read economic times, watch CNBC, read business articles and try to understand what is happening in the market. Anyone can coach you but you can excel only when you unleash your unsurpassed potential.
#7. Find trading styles which suit you-Try to read Market Wizards including business talks made by successful traders who incorporate various trading styles. Doing this you’ll get to know the current market trends, and will let you easily pick one suitable trading style. For example, if you have a full-time job, it doesn’t make any sense to become a day trader.
#8. Don’t trade every day or every hour– Sometimes it happens that you are continuously suffering losses in stock trading. In the end, it may happen that stock trading is just like gambling and sometimes requires a good luck. At this time control yourself and wait patiently for best trades because, not trading sometimes can result in a better trade.
So, remember these ways and try to make best trades, and surely money will follow you.