Requisites Of Being A Successful Trader

Trading of shares for a living or being an active trader is quite a rewarding career as it gives you financial independence and also instant gratification. The decision to be an active trader should be carefully made after analyzing your dedication, skills, love for trading and discipline. Or else it would be quite detrimental to your personal and professional life. Listed below are few rules one should follow to be a winner in the field of trading. Check bitcoin code trading robot review

Rules to follow

Never try to go against trend-Whenever the market goes up, don’t try to sell and when the market is going down, don’t try to buy. If you are beginner you need to stick to this rule as only an expert or professional trader should ideally conduct the counter-trend trades. The skill set required to do such trades are lot more.

Don’t blindly follow the tips from others– In order to be a successful trader, one should understand the logic behind each and every trade. You need to document all the trades and learn from the trades done. Just simply, if you follow others ideas, you will end up losing money.

Learn the technical analysis– One of the ideal ways to begin the trading activities is by learning to do technical analysis or by looking at charts. Most of the technical strategies will never give you a sell or buy signals against the market trend. The initial step to learning about the technical analysis is by reading about moving averages and candlesticks.

Fix a stop loss on all the trades– For a beginner; it is a must to have the stop loss on all the trades you conduct. It is essentially a predetermined point to book the loss if at all things don’t go as planned. By doing so, one can come out of the wrong trades quickly and can maintain a mental balance to search for other trades that are profitable. The biggest mistake an amateur does is by adding more to the trade to lower the acquisition cost whenever they are wrong, instead of exiting that trade. You need to slow down whenever things are not going well and never increase the trading capital in such scenarios.

Posses’ money or risk management skill– A trader is required to have risk management skill to be a profitable one. It is critical to allocate those funds for trading which you can afford to lose. The money put for each trade should not exceed more than 15% of the capital allocated in total. It ensures that you don’t put all the money in a single trade.

Keep your emotions in check- Don’t let the emotions like fear, greed. etc take over your decisions. Think logically and practically when you make a decision to trade.

Trading shares is a fruitful career when done rightly. You need to be focused, disciplined and put in a lot of effort. Following the above mentioned simple rules will ensure that you will be able to beat all the odds and be a winner.

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