Practice these trading habits that will help you out!
Hi Friends,
The Investment areas – financial markets, crypto markets and its related investment opportunities are considered to be quite fascinating, getting attraction and are much tempting all of us to invest in them and to reap the rewards so quickly without much efforts.
But most of us as investments do not know where to start and where to book profits/ keep stop loss and to much understand the risk-reward option.
Here are the important points that we as investors/traders must know and practice it in our trading practice.
- Determine our trading style :
We need to understand ourselves as what kind of trader that we are and we want to be whether we need to be a day trader, swing traders, short term /positional trader because each of these needs a unique steps of approaches that need to fit to our lifestyle, time and needs. Mostly this should also match to our work-life balances too.
- Learning the basics first:
The more strong your understand the basics, the more gain you would reap in your trades and investments. Hence, spend time and energy to understand the basics first. It is an important thing.
This involves a lot of technical terms and concepts. Spend more time to learn about the markets that you involve, understand the concepts of various technical concepts-analysis and risk management. More importantly these are available freely in the internet. Browse and conceptualize the things by yourself.
Developing a Perfect Trading Plan for you
This is yet another important aspect as a trader. A trading plan is combination of set of rules that guide your trading decisions. Instead going for multiple trading set ups, just focus one set up and be master in it.
The Trading plan would include your goals, risk appetite, possible/ perfect entry and exit strategies and position sizing. Stick to this drawn plan, and don't let emotions ruin /affect your trading decisions.
Start with a Small
Don’t believe in becoming overtime richness. It is very important to understand that no one is successful in any business overnight. This would 100% applies with trading also. Don't take too much risks with your capital when you start trading.
Begin with very small amount and gradually increase your position size as you become more confident and successful in the coming days.
Patient and Disciplined are important:
Patience and Discipline are very important in trading. We must understand that trading is not a get-rich-quick scheme.
It always takes time and effort to become a successful trader. Don't get discouraged by the initial losses. But try to learn from your mistakes that you have committed.
Always try to keep track of your trades and analyse your performances at a more frequent intervals. Try to Identify what works for you and what doesn't work. Adjust your trading/ investment strategy accordingly.
Don’t compare with others
Another most important thing please do keep yourself. Don’t compare your plans, strategy and profits with others/ or your peers. Do keep your own strategy and plan that would 100% fit for yourself. Never ever compare and with others especially in the trading. Do your own course of implementation. That will give you enough gains.
Above these consistency is the most important thing. Be consistent and never stop , and it will make you win the game gradually but constantly.
First published on publish0x.
