Many people are interested in knowing how to became a good trader for that many of newcomer and newbies are finding many ways and some shortcut methods to trade by any means of communication advisable by any Pandits of stock market which is easily found on social site…So new trader more many trader do not know how to make a good setup of their own trading sets and plan to make good profit & good money from stock market..
So here the rule to be a GOOD TRADER
MAKE A TRADING PLAN
By using phrase “PLAN YOUR TRADE OR TRADE YOUR PLAN”
we get to know that before doing anything in stock market one should must make a good setup of their trading plan before executing the plan on live market one should do the back testing of their plan at least for 3 to 6 month’s to gain confidence on his method and once the trading plan has been ready then one can do real live trading..
THINK TRADING IS YOUR BUSINESS
To be a good or successful trader, one must think that stock market trading as a full time business or a part business. Stock market trading is not to be considered as hobby or a job cause hobby or job is not a good commitment for trading. Therefore as a good trader one should must think he is running a small business with proper rules and regulations..
USE SMART TECHNOLOGY
As everybody knows trading in stock market is world class competitive business. So to be good trader one should always think out of the box and must use the smart technology like
a) Good high speed internet facility
b) Good demat account with many tools and charting system,
c) Supportive back testing Institutions for fluency in trade
So using smart technology increase the fluency in trading style
KNOW THE RISK AND RISK MANAGEMENT
Before executing the trade always decide how much you are going to loose on a trade an what is risk of your trade stoploss, target, trailing stoploss of that trades… Cause it is to protect your capital
Protecting capital includes..
NOT PUTTING STOP LOSS
FINDING EXCUSES ETC
By following above terms one can preserve his capital
KNOW WHEN TO TAKE BREAK FROM TRADING
There are many reason when to take break from trading but two are more popular
A) INEFFECTIVE TRADING PLAN
B) EFFECTIVE TRADING PLAN
A) Ineffective trading plan is when a person is not following in own rules and setup and go for some fake advice of friends, gurus, some Pandits on social site, if a person does these kind of stuff does my loose his capital if a person losses his capital more than 60-70% then he must take break from trading and go back to learn where was the mistake and improve them..
B) It’s is important to keep focused on your own trading plan and setup instead of someone else plans,to be consistent on trade on should follow his own terms and conditions.. Good system and trades always makes a good profit market and hence once your capital is above more 60-80% of our investment then please take profit to your home cause profit is only when you take your profit to your @home instead of saving in demat. After that you take break from trading enjoy with your family, take a vacation on tour, etc and then came start trading with great mindset..