ix-Trading is a Business- (Trade Plan)
As said earlier Day Trading
is one of the greatest profession in the world but still more than 95% people fail in that because of indiscipline.
In day trading only rule book works
wherein you need to write your own strategy and
follow that relentlessly irrespective of situation. A day trader
will have to work in every type of market -euphoric, bearishness, volatile and
dull markets. Every market needs to be traded accordingly.
You can only master trading
or become master in trading in all types of market when you start treating it as a business. Maximum problems
vanish once trading is treated as a business. But for most of the people, treating trading as a business does not click.
Because if you go through your trades and cross check them, you will begin to realize that for most of the
trades you do not stick to your plan.
Like any business, traders should have a plan. When to enter, when to exit
and how to manage the trade. Make a trading journal
to understand the trades you have made. Never trade like a gambler and never
lose more money than a predetermined amount in any single day /single trade and
once that amount is lost stop the trading immediately because that money can be
made in next few trading sessions but if you have taken a big loss which would
not only reduce your chances to make profit in next deals but demoralise you. You scale up (only) by executing trades that are logical
and follow your system.
The
successful trader has a trading plan where he adjusts his traded amount per
trade, since he knows anything can happen. A mastery of stop losses. Trailing to remain above
loss. A mastery of take profit areas. When this trader does not see an
opportunity, he immediately closes the trading app. It is important to thoroughly
back test a strategy so you can establish trust
and poise and have an adjustable trading plan such that the losses do not decimate your capital before your time
to shine comes. It is 80% mental
disposition.
To succeed, you must master one setup on one market before you move on.
If you do not know what to master first, take up to a month to decide trying
out all of them on demo and then decide. This market
does not reward the jack of all trades master of none.
It is very easy to think
you understand above thing, but once you begin to ask yourself the questions,
you dig into the real answer and that is where the true growth lies. The mind once expanded by a new idea, never returns to
its original dimensions. Once you stop
doing gamble trading and start doing trading which
follows a system that works, there is no looking
back.
Remember
making money in the markets is not really that hard. Making more money than
everyone else, that is hard.
Successful
intraday traders are set apart from unsuccessful ones by several
key factors: Less Expectations: They maintain less expectations from the
market (within 5% returns per month). Open Mind:
They are open to learning new things and quickly adapt to any changed
situations. Emotion Control: They can detach themselves from emotional impulses and make
rational decisions based on their trading plans. Money
Management: They deploy disciplined risk management strategies, such as
setting stop-loss orders, hedging their position, and limiting the size of
their trades. They understand the importance of preserving capital and avoiding
significant losses is the key. Personality:
They often develop a strategy that suits their individual style and
personality.