ARE YOU ALSO STRUGGLING WITH YOUR NEW TRADING CAREER ?
If you are also struggling with your new trading career then don’t just worry, it’s not like if you are only one who is struggling, as all the new comers goes through this same phase, and those who keeps believing in them and keeps the grind on eventually pass this stage and become a successful trader in the end.
In this post we will discuss about what one should do if he is not able to make money in the market
So, let’s start with the basics that everyone should follow in their initial phase of trading to become profitable.
1) SAVE YOUR MONEY: - There a great saying i once heard that in stock market , "First you will lose money then you will learn how not to lose your money and you will start making money ".If you are new then forget about how to make money, else keep focus on how not lose your money . Because once you have learned how not to lose your then money will just eventually start flowing into your account. So, work on protecting your capital.
2) UNDERSTANDING YOUR TRADING STYLE: - there are three types of trades one can execute in the market, and these are INTRADAY, SWING, POSTIONAL/INVESTMENT. The main difference between these trades is their holding time, assuming that you already know about these, I will proceed our discussion on why knowing your trading style is important. If you are taking intraday trades only and failing everyday then you should restart your trading journey as a Swing trader. As swing trades don’t require some immediate actions like entry and exit which is required in intraday, so you can give more time to your analysis and plan perfect entry and exit levels . And once you start feeling confident about your analysis then you can shift to intraday again back in future. Believe me this will help you a lot, at least it did the work for me. But if still want to take only intraday trades, don’t worry I will cover that up in next point.
3) PRACTICE MAKES A MAN PERFECT :-I don’t know if Practice doesn’t make a man perfector not but surely it removes the imperfections from a man. To become a better intraday trader what you have do is to take as many trades as you can but keep the quantity fixed to 1-2 and risk to reward to 1:2. Go to smaller time frame draw your support and resistance levels and execute trades accordingly, don’t worry about the small profit as it will come once you finish your training. Your goal should be of executing 500-1000 trade in next few months and see the by yourself in the end.
4) LEARN FROM YOUR MISTAKES: - whenever your trade fails, reanalyze that stock that try to figure out what was the mistake and write down your mistakes in your trading journal, it will help you to overcome your common and frequent mistakes and, in the end, you start avoiding these mistakes.
5) DEVELOP READING HABBITS: - If you have learned some few strategies from YouTube and trying to execute trades on the basis of those strategies then I will suggest you to read books about technical analysis. I am mentioning few books and sources that can help you,
a) Japanese candlesticks by Steve Nison
b) Trading in the zone by Mark Douglas
c) Encyclopedia of chart patterns by Thomas Bulkowski
d) The art and science of Technical Analysis by Adam Grimes
e) Zerodha varsity is also a good source for free and systematic course of Technical Analysis and Fundamental Analysis and much more.
I am sure if work on these points you will become a successful trader one day for sure.
I wish you a happy trading journey, best of luck for your future.