Stock Trading- (Day Trading)-9

                                            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.

 

Overall, the combination of market knowledge, risk management, emotional control, continuous learning, and a defined trading strategy are critical factors that make successful day traders/businessman in trade.