Stock Trading (Day Tarding)-1

 i. Introduction

1.  It is not Gambling but a professional skill. - "Drawing a circle and waiting for a cow to enter is GAMBLING. Finding a cow and drawing a circle around it is TRADING." Real risk management is not turning a Rs.5,000 into Rs.50,000. That is massive gambling. Anyone who says, that is the way to succeed is a colossal salesman. If that was truly repeatable repeatedly, they would not sell a system for Rs.500- Rs.5000, they would just rinse and repeat their system. Remember trading is a skill that must be learnt like any other professional skill. Trading is not an easy skill to acquire. It will require years of learning and making mistakes before you become good at it.

 

It is not luck and not a get rich quick scheme where you will magically turn a pocket change into something big. However, if you are consistent, hard-working and have a long-term mindset, this endeavour can change your life. Treat trading like a career. You cannot do trading Part Time, but Trading as a full-time career without any other source of income is very difficult if not impossible is also true.

 

2. Trading is not a 'prediction' game- Trading is a probability game and not a prediction game. It is impossible to catch all the excellent trade opportunities every time. Day Trading is volatile. People should remember that being a day trader is not that easy and it is not a guessing game.

 

3. Encourage yourself -Learning to trade is a lot like when babies first learn to walk. In the process, they stumble, fall, and even may hurt themselves but it is just that, part of the learning. You encourage baby to get up and keep trying until they can fully walk on their own. Similarly, you are learning skills that are not taught (while) growing up. So, it may take a while and a few accounts to find your stride, so encourage yourself.

 

4. Toughest game on the planet- The journey to success in trading is not as glamorous as people may think, especially whilst you are going through the process. Spend majority of time with charts, working on them, that many feel as boring but need to love it. Love laying the brick every single day and building the foundation. Because it is the day after day of consistent action, which will provide the results in long term. This is the toughest game on the planet.

 5.People just fail because they have wrong expectations on how it should be done. So, the first thing about day trading is to set your expectations straight.