Treat Trading as a Business:

  Who ever entering in to trading they think it is a money making machine. Even when I started before 3 years I too had a same mentality. Every trade I will loose 1000's and in few trades I will earn 100's but that 100 rupee will give me more confidence. On that day I will think that I found successful strategy to trade, so because of my strategy I made this money today. Then the very next day when entering in to market I think I am an ultra smart guy who made 100 rupees yesterday so where ever I enter I will book profit, but market will punish me by hitting my Stop loss. It took one and half year for me to learn and started making money in market. 

Trading is not easy task but it is simple, all we need is KNOWLEDGE, DISCIPLINE and MONEY / RISK MANAGEMENT. 

KNOWLEDGE:

By Learning Technical Analysis and other books one can gain more knowledge about stocks. There are many free source available in the market like, ZERODHA VARSITY, INVESTOPEDIA etc etc. Once we attained sound knowledge about technical analysis we have to practice it for at least one month and we should do paper trading along with our practice. 

MONEY AND RISK MANAGEMENT:

This one is very important for every trader, unless if we have good money management then we cannot make single penny in market. Risk Management is the key to getting succeed in trading.

What is Risk Management?

You may heard this word from every trader but no one will teach us what that exactly means, here I have explained what Risk Management is,

 When we buy 100 rs stock with target of 105 and stoploss 95, here both the sides up and down I am keeping 1:1 risk reward ratio, so when we do 10 trades and in that 6 are profit then we will end up in profit on that particular day. 

Risk Reward Calculate:

 My capital is one lakh and I am keeping 2% I.e. 2000 per trade as risk and reward, so if I keep 5 rs target then it is 2000/5, if 25 rs as profit then 2000/25 and if 150 rs as profit then 2000/150. So finally when we winning the 6 trades we will have our capital safe with 2000 rs profit.

Kindly keep this in mind across all your trades.

DISCIPLINE:

 Following the Trading Plan, Strategy, Risk Management and GREED/FEAR is called discipline. Even if god come and says or asking you to buy any stock saying it will rise or fall, do not consider his words. If a trade is coming in to your strategy and do not wait to enter in to that trade. Also dont exit the trade for any reason until it reaches the target or Stop loss. When ever we think to exit just keep one thing our risk is just 1% from our capital both the sides. it doesn't mean I am saying we should not keep 1:2 risk reward, we can do that but we have to practice 1:1 RR first.

Trading is the world class business if you follow your discipline. For any Technical related queries or Intraday calls kindly send email to Techstosis@gmail.com