Mere knowledge of the technical know-how of the trading world is not enough for a successful trading career. There are certain secrets of every successful trader that he or she does not let out of the bag. Apart from the regular trading norms discipline and regular practice of these secrets make one a successful trader. To begin with:
- Specify Your Goals and Choose a Compatible Trading Style- understand clearly what kind of trader you are or you want to be. Be clear of the fact whether you are a short-term or long-term trader or you are a full-time or part-time trader. Understanding this fact is the first step towards a right trading venture. This will help you choose and invest in the right kind of stocks. A stock suitable for an intraday trader is never the one a long-term investor should invest on.
- Choose an Appropriate Trading Platform- let you be an amateur or an experienced trader, we all need trading advice time to time. So choose a trading adviser who is suitable for your trading style and can help you accordingly. We at ProRSI have experts with expertise in various kinds of trading styles to help you with all your needs.
- Choose two indicators for yourself- The secret to successful trading with maximum profit margins is to use the right technology tool for trading decisions. Using One technical indicator is better than none, but using the second indicator for being sure of the odds of being right of the first is the best. However, limit it to just two. Do not overdo with indicators, as managing and tracking many of them will not be tiring and hectic but also tricky.
- Choose Your Entry and Exit Time frame Carefully-Market timing is the important factor while trading, the entry and exit timings are very important as they decide a big portion of your profit margins. Choosing and following the right indicator in accordance with the trade type is important in deciding the entry and exit timings. Signals indicating a buying opportunity on a weekly chart could, can in fact, be a sell signal on an intraday chart. So one needs to be extra cautious in such cases as this is the most common dilemma that most traders go through.
- Calculate Your Expectancy and embrace small losses- one must be sure of his or her trading process and the best way to do so is to calculate the expectancy. Calculate the theoretical return and compare it with the actual in-hand returns. This will not only help you track your investment but also make you realize the wrong moves and work more with the right ones.
- Another very important attribute that all successful traders have in common is the fact that they embrace small losses in exchange for bigger profit margins. Sometimes it is wiser to get back your money with a minimum loss from stagnant stocks so as to invest it in stocks that will give you high-profit margins in lesser time. The loss incurred in such a process is not actually a loss rather a depreciation for a better profit. One needs to understand and develop such trading psychologies with the help of technical analysis for boosting one’s trading skills over time.
- Keep a Printed Record- keeping a record of all your trading transaction is important so that you can look back and calculate your investments based on the track records. Although these days, various apps do this for us still nothing can replace the real paperwork.
The above practices might seem small but these small steps are what dominates the trading world. A right trading psychology and a healthy practice of these habits will sure make you a successful\l trader over time.