How to become successful stock market trader ?
How to become a successful stock market trader?
Rules 1
- Understand the basics of the stock market.
- Design a trading system according to the market situation. E.g. High volatile market, low volatile market, Sideways market.
- Trading system 1. When the market is sideways using a Bollinger band for our analysis.
- Trading system 2. When the market is highly volatile use option chain and implied volatility system
- Trading system 3. When the market is low volatile use price action.
Rules 2
- Follow professional traders, watch their videos, read the blog and implement those rules.
- You can earn from the market whether it moves up or down focus on learning.
- Make a habit of profitable trade.
- Never lose money from the stock market.
Rules 3
- Do meditation.
- Place your trading setup in the noise-free area. There should be no disturbance during trading time
- Do not watch TV during market hours.
- Do not use any social media during market hours.
- Do not overload yourself with a lot of news and information.
Rules 4
- Do not try to double or triple your money in a single trade
- Follow the trading system signals for entry and exit from the trade.
- Our mind is biased and mostly controlled by emotions we don't see things logically and scientifically.
- If you start making money regularly in the stock market don't pretend yourself a master
- Always keep learning from the stock market it teaches a new lesson every day.
Rules 5
- Don't try to find the shortcut in the stock market
- You can't make money after buying a trading setup or attending courses of 1 or 2 days.
- Big players don't follow the technical analysis they made the technical.
- Track the big player's money flow in the stock market.
- Read research paper of implied volatility
Rules 6
- Don't Take nay random trade at 9.15 Do your homework after market close or before opening.
- Always plan the trade and then trade the plan.
- It is not important what to trade the important point is when to trade.
- Important skills of traders are discipline & patience
- When volatility increase reduces your trade size and vice versa.
Rules 7
- Reads Books
- R. C. Effinger ABC of Investing
- Dice & Eiteman The Stock Market
- B. E. Schultz The Securities Market: And How It Works
- Leo Barnes Your Investments
- H. M. Gartley Profit In The Stock Market
- Curtis Dahl Consistent Profits In The Stock Market
- E. J. Mann, You Can Make Money In The Stock Market
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