Whether you are day trader, positional trader or swing trader ,there are fundamental skills that each trader should master. Skill-building activities will help you sharpen your ability to make money and cash in on critical market movements.
1. Focus on Consistency and Patience
Consistent profits are achieved from winning more than you lose – not winning every single trade.There are plenty of professional traders who generate profits by winning just 10% of their trades by maximizing gains and minimizing their losses. To make Good Trade you must prepare properly, work hard, and have patience
“In this game, the market has to keep pitching, but you don’t have to swing. You can stand there with the bat on your shoulder until you get a fat pitch.” —Warren Buffett
It is not enough to buy a strong stock, or short a weak one. Price matters. You have to open your positions at a price that offers the best risk/reward opportunity
Patience enables an excellent entry point, which allows a trader to
- Take the Rigt Entry with Right Position Size
- As Entry his Right SL will not Increase and get the Right Risk to Reward
- Hold the position for a larger move
2. Stick to a Trading Plan/ Trading Strategy
Developing a Trading plan is extremely important.Day/Swing trading around your own set plan for each position will produce consistent profits or LImited Loss. A trading plan should be your best friend when developing your own trading style. The key is sticking to what you’ve written down on paper. As we have discussed before we work on Gann trading strategy, so we do not trade on news we just trade as System is signalling us. We have firm belief price is everything so we just trade the system signals. The best trader is a prepared trader.
3. Know the Fundamental of Trading
Below are the 7 Things which every trader need to follow
1. Proper preparation 2. Hard work 3. Patience 4. A detailed plan before every trade 5. Discipline 6. Maintain a Trading Journal 7. Review important trades
Trading is a game of math. It is about finding setups that offer you a good risk/reward and pulling the trigger. Thirty–40 percent of these trades will result in a loss. This is the game. You should know the risk for each trade that you take.Your trading plan should include a way to regulate how much capital you’re willing to risk on each position and can you sustain a series a loser.
4. Ability to Keep Emotions Under Control
It’s hard not to be emotional with your hard earned money at stake each moment of the day.Think like you would in a survival scenario;you’ve got to be calm and keep your head above the water.Many traders slip from their plan and take positions to cover losses only to lose more money. Over time,a complete trading plan will produce consistent profits,but only if you believe in it. Read more on Emotions and Trading.
Consistently profitable traders do not force trades. They embrace the important part of their job—just waiting for a setup to develop.
5. Know How the Market Responds
After getting some experience, you should be able to know how the market responds to certain events before they happen. Either be with the trend or stay on sideline.Most of the money you will earn trading will be easy money. You will see something on your screen that signals a great trading opportunity for you and you will pounce. But these great opportunities present themselves only because you have watched your stock(s) and gathered valuable information.