An Useful Tips for Trader
1. Take low risk
This is one of the very important success mantras in trading. Trading is not possible without risk, so take small risk and avoid big risk. Traders mostly fail or encounter by taking big risk like doing overtrading, trading when market is uncertain/directionless, trading for sake for trading, trading purely based on tips etc
How to avoid big risk in trading?
a) Never put all your savings money into trading.
b) Never take loans for share market trading
c) Never put all your trading capital/money in single trade.
d) Never act on any tips blindly.
e) Avoid over trading, to get experience trade only with the amount available with you so that if the trade reverses you can take delivery of those stocks and sell later whenever the stock price goes up.
f) If you lose one trade then don’t lose patience and act immediately to recover those losses. This action will end up again with more losses.
2. Try to minimize lossesa) Losses are part of trading. It is not possible to do trading without losses but trader has to minimize loss and increase profits. Losses occur because markets move based on various factors and parameters which are not in anybody’s control. In such scenarios stop loss trigger price order comes need to be applied.
b) If the trade goes wrong then trader can come out by accepting loss and then analyze what went wrong. If market is moving in very volatile manner and trader is not able to understand then it is highly recommended to stay away from market for that particular day. Money save is money earned.
3). Your Experience
We get lots of email from traders to know the short cuts to earn money in share market and we always keep saying that there is not short cut to earn money in share market.
Lots of new comers to share market enter into trading and make losses because they don’t know what trading is and very importantly trading requires experience and it’s not the job of overnight reading of trading articles and strategies and start trading on very next day.
So we keep advising to all new comers to share market to do paper trading practice without actual risking your money and if you get success then you can start trading with your money.
Without experience it’s not possible to get consistent success in share market trading, so don’t risk your hard earned money without gaining trading experience.
4) Experience removes your mental blocks
What type of person you are is also important to get success in trading. If you are short temper, undisciplined, acting without thinking then trading is going to be extremely difficult.
So to overcome all these unwanted characters you have to gain experience by doing paper trading practice.
Experience will remove all your mental blocks and you will start doing successful trading.
Take your own time to gain experience, don’t hurry and jump to start trading.
1. Take low risk
This is one of the very important success mantras in trading. Trading is not possible without risk, so take small risk and avoid big risk. Traders mostly fail or encounter by taking big risk like doing overtrading, trading when market is uncertain/directionless, trading for sake for trading, trading purely based on tips etc
How to avoid big risk in trading?
a) Never put all your savings money into trading.
b) Never take loans for share market trading
c) Never put all your trading capital/money in single trade.
d) Never act on any tips blindly.
e) Avoid over trading, to get experience trade only with the amount available with you so that if the trade reverses you can take delivery of those stocks and sell later whenever the stock price goes up.
f) If you lose one trade then don’t lose patience and act immediately to recover those losses. This action will end up again with more losses.
2. Try to minimize lossesa) Losses are part of trading. It is not possible to do trading without losses but trader has to minimize loss and increase profits. Losses occur because markets move based on various factors and parameters which are not in anybody’s control. In such scenarios stop loss trigger price order comes need to be applied.
b) If the trade goes wrong then trader can come out by accepting loss and then analyze what went wrong. If market is moving in very volatile manner and trader is not able to understand then it is highly recommended to stay away from market for that particular day. Money save is money earned.
3). Your Experience
We get lots of email from traders to know the short cuts to earn money in share market and we always keep saying that there is not short cut to earn money in share market.
Lots of new comers to share market enter into trading and make losses because they don’t know what trading is and very importantly trading requires experience and it’s not the job of overnight reading of trading articles and strategies and start trading on very next day.
So we keep advising to all new comers to share market to do paper trading practice without actual risking your money and if you get success then you can start trading with your money.
Without experience it’s not possible to get consistent success in share market trading, so don’t risk your hard earned money without gaining trading experience.
4) Experience removes your mental blocks
What type of person you are is also important to get success in trading. If you are short temper, undisciplined, acting without thinking then trading is going to be extremely difficult.
So to overcome all these unwanted characters you have to gain experience by doing paper trading practice.
Experience will remove all your mental blocks and you will start doing successful trading.
Take your own time to gain experience, don’t hurry and jump to start trading.
