: A Successful trader has an ample of experience and strategies to follow to survive in the market. We can find few similarities among these traders to be fortunate. The following bullet points gives a vivid idea of a being a successful trader.
Search for the desired market
Each market has its own merits and demerits based on the trader’s choice and preferences in selecting the market is the foremost step. This is the crucial step for the trader, hence determining the effectiveness and monitoring your trades.
Plan a strategy:
Explore and understand the trading strategies in the first 9-18 months for a better approach in managing the trade. Regular change in trading strategy for every 3-4 months demonstrates the good understanding of the process.
Execute the strategy:
Put the wheels in motion and stop the trial and error method. It is necessary to understand that any trading strategy will not give money from the beginning. Furthermore, it is a continuous process of applying the strategies without emotional breakdown.
Learn from your mistakes:
Evaluating your trades gives two purposes:
Firstly, the trader thinks that the losses incurred are caused by themselves. Yes, despite of following the correct strategies sometimes the things goes off the hands. In the first place it is more evident that the losses incurred are due to violating the rules.
Secondly, the regular trade review could exhibits the problems with your following strategy. Therefore, most of the traders don’t learn from their past mistakes. Today, we have websites for ex: Edgewink.com trading journal that helps to review the procedure.
Fasten your learning process:
Back testing is an exercise to speed up the learning process among the traders. The traders goes to the old data and check out the opportunities by applying the rules. The purpose of following this process gives the makes them understand the previous trading strategies performed. It helps in pattern recognition. In the beginning you won’t acquire good skills.
Later on by exposing yourself to these past patterns and number of back test patters give the understanding of various chat scenarios. It helps the trader to grab more opportunities in real-time trading.
It is recommended to save the last few minutes to do this process to ascertain the learning process.
Risk Management:
Most of the traders believe that they can earn good returns in a small span of time. Unfortunately it’s not. To make good money, trader takes high level of risks of losing money. As a result, you should make sure to learn the risk management. Being discipline in course of action gives fruitful results.
Value of Discipline and patience:
Successful stock market investors indicates that discipline and patience are essential values for navigating the unpredictable currents of financial markets
Develop your trading account:
Trading is a test of patience. Traders should be patient to grab the trading opportunities to maximize the profits. You have to understand that the trading is a long run process which doubles the investment over few months.
When you have planned the strategy, executed it, backtested the past data, and inaccuracies, and learnt the risk management, then the process kicks off.