While You are trading or planing to take a trade, It YOU from making a trade plan till trade execution irrespective of profit and loss.Many traders gives excuses like Market is bad so we lost money , Do remember market is always right its YOU where faults lies into.
Surprised, you really shouldn’t be as you are the one writing your own trading story, so the big question is;
- Do you really want to be a trader?
- Do you have ability to become a trader, means thinking I want to be trader will nt work out, Do you have a concrete plan ?
- How much do you believe in your ability to get there?
My mentor once told me the below lines which are etched in my Mind as if he told me 5 minutes before.
“Trading is the most tough-fest business,you will need to be tough to survive and become a successful trader. It is not enough just wanting to be a trader you have to believe that you can truly be a professional trader and you will need to work on that belief every single day. If you give anything less than your very best effort you may as well give up now and do 9-5 Job”
Remember, you are competing against other traders just like YOU! The successful traders are better prepared, smarter, more disciplined, have better technology and are relentless in being the best they can be. Do you want to join this group?
What will separate YOU from them is your commitment, discipline, professionalism, self belief and the fact that you are building a winning team!
So Stop giving excuses to yourself and get to work.
To be successful in trading the stock market, you need to do what the majority of traders don’t do. This may seem like a simplistic view, after all, you don’t know what you don’t know. So how does an inexperienced person work out from the overwhelming load of information out there what they should be doing?
Learn from the market rather than trying to outguess the market
A lot of us tend to believe that the typical trader is a brash artist who takes big bets against the market. These are few and far between. Generally, trading is all about constantly learning from the market, having the humility to constantly tweak your strategies and try to be as close to the market trend as possible. If you want to know the 7 habits of highly successful traders in equities, then this point will rank at the top.
Mental Toughness
You could also think of this trait as being thick-skinned. The market will constantly throw losing trades at you, and you need to bounce back. If you feel discouraged every time you lose a trade, or your strategy fails to produce the result you expect, your life will be miserable. Losing trades are constant; most successful day traders will have losing trades every day.
The difference between a successful trader and an unsuccessful one is that most successful traders win slightly more on their winners than they lose on their losers and typically win slightly more often than they lose. If your wins are much bigger than your losses, you may only need to win 30% or 40% of your trades.
Other traders may win 60% or 70% of their trades, but their wins may be equivalent to, or only slightly larger than, their losses. In either case, losing trades happen. Daily profits can still occur despite those losses, but only if the losing trades don’t discourage you. If losing trades cause you to lose focus, you’re more likely to miss (or skip) the next trade, which could be a winner.
Losing streaks also occur. Traders must stay focused and rational through a losing streak and not let the loss of capital affect their judgment—which will make matters worse. It requires mental toughness to stay focused on executing your trading plan and realize when the market isn’t providing you with good opportunities for your strategy.
A trader must withstand a continual barrage of punches from the market. Losses are a fact of trading, but it’s how we act after some tough trades that make all the difference. After taking losses, move on, and continue following your trading plan. If you are following your plan, but you just keep losing, market conditions likely aren’t right for your strategy. In that case, walk away until they are. Sometimes being mentally tough means making the hard choice of not trading.
Find a trading approach that suits you
The very first thing one should figure out is the right trading method that suits him, as there is no right size common approach that can guarantee success to everybody. A person has to know whether he is comfortable with fundamental or technical, long term or short term, certain types of markets, wider risk or less risk… You can go through a whole checklist of things and find out it’s different for each individual.
Be an avid reader, researcher and a learner
A lot of people may find this point slightly incongruent. You always thought that research and reading was for investors and not for traders. That is incorrect! To be successful as a trader in India you need to understand the companies you are trading in. Your approach to the company may differ but the trader also needs to research. A trader needs to be absolutely well informed about the latest macro and micro events. That is the only way to take an informed trading decision. Above all, a trader needs to go through a constant process of learning and unlearning. You cannot be an outdated trader in the equity markets.
Unrealistic expectations about trading the stock market
Trading the stock market inherently involves some level of risk. Yet the majority of people attracted to the market are willing to take higher risks, believing they are adequately equipped to trade after reading a few books or attending a weekend course. Indeed, many traders seek out instant gratification, plunging head-first into the stock market using complex strategies in the hope of profiting from their efforts. Sadly, many lose their hard-earned savings on unrealistic expectations.
We are told that knowledge is everything, but in the context of trading I believe it is the application of the correct knowledge that is everything. The streets are littered with wanna-be traders and in a bull market many are profitable mainly through sheer luck rather than good knowledge. Strong bull markets tend to hide mistakes in judgement and lack of knowledge, which is why I say that unless you have been trading the stock market successfully for more than two years, you cannot consider yourself a trader.