This article is mainly for those who usually struggle in the market and get involved in the faulty ideas for getting profit from the markets.
This article will let you know about some of the basic strategies followed by Successful traders for trading successfully in the market.
Successful Traders Take Trading as a business and not a game club or hobby.
Think of all the trades you did in the last month and try to make out your profits & loss you made from the market.
Also try to make out that whether you took each and every trade as a business or not. Because when you think it as a business you will always think ten times before taking any decision.
Take an example of a shop which is newly opened if it wants to earn profit it will try to minimize the expenditure and try to earn profit by attracting and getting more and more customers. If it fails to do so it will tend into making losses at the end of the month.
Even after getting customers, if the shopkeeper increases its expenditure, then the money earned throughout the month then also it will cause a loss at the end of the month.
In the same way in the market if your number of losses increases then your number of profits earn in the market will lead to a great loss to you at the end of the month.
So it’s really necessary to think it and take it as a business in order to understand the importance of trading in the market.
If you will take it as your hobby or a game club then you will take it very easily without wondering more on your decisions.
The shopkeeper cannot be dependent on the game club for getting profits and run the shop , because in game club, there is not at all surety of winning , but in business there is always surety of profits.
So you should take it as a business , do hard work, think twice before your every decisions , then only it will help you in trading successfully and gain profits.
Successful Traders Manage Their Position Size .
If you will set your proper position size in the market then it will help to manage your losses. Also keep the records of every trades.
This will help to avoid losses as it will give you an idea of risk involved in the trade. Many of the trader risk more than enough and they are not able to manage or control their position size in a market.
You should always calculate your stop loss before entering into any trade. The profits should be always greater then the stop loss to increase your trading results.
Thus position size is strictly followed by successful traders so tightly to make them successful. So it is necessary to calculate your risk before entering in the trade
Always choose high profits setups in a market with less risk and do not over trade in the market.
Try to understand the price action and get master in it.
It is very much important to learn and understand the price action. It helps to the trader to find most high probability trade setups to minimize the risk and to improve their accuracy in trading.
Mastering the price action strategies will make you a successful trader and you will become confident about your decisions and smart trader.
Mastering price action will help you to get more accurate results from your trades and to stay away from overtrading.
Be positive in your thinking.
Try keeping a positive attitude for doing so, you can do such as taking printouts of the positive thoughts and putting them on the walls of the office or at the home.
By putting them you should read them every day. If not this then you can also write the good ideas on your mind on the paper every day and also keep writing about your trading plans.
This will help you to be very clear on your mind when you sit for trading and will avoid any kind of emotional disturbance due to markets condition.
If you take a print out and put it than it should consist of the points to do trading successfully.
Need to be patient.
Avoid over trading.
Need to keep on going without taking it emotionally.
The risk should be always less than the return reward.
Take all decisions as a business and not a game club.
Have a faith in yourself.
Successful Traders follows the above points strictly.
It is very common among the beginner traders to get emotionally attached with the trade. Don’t just enter the market and start trading for no reasons.
Before you start trading ask yourself the reasons that why you are trading ? because you can’t be in a market just as you want to be , and you will end up in involving yourself in the wrong setups.
Doing so you will get upset and anger on yourself. So don’t trade just to show off others in a stupid way. Wait for proper time to prove yourself that’s more important at that time , then proving others wrong.
Happy Trading.
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