Essentials of Trading
Stock Market is all about Probabilities either you make money or you loose money. The Market is always going to be neutral. The Market will always Remain.
ITS ONLY ABOUT MAKING MONEY HONEY...
Most of us have started Trading for quite some time, but are still struggling. The huge glut of information in the market place only tends to make life difficult for us, confuse us as a trader and we ends up on the losing side.
Lack of systematic trading plan, trading setup, money and risk management principles only complicates matters and the regular trader either gives up trading or suffers huge losses.
You may ask yourself.
What does it take to become a consistently successful trader?
Well, there are several essentials that you must consider in order to ensure that you are not gambling. Of course, there are many that would conclude that trading is gambling; but the difference is the level of calculation in the risk assessment and putting the odds in your favour by identifying high probability trades and strictly following rules.
Putting the odds in your favour entails a number of essential components that need to be followed with a fierce focus. Without these processes you will fail, just like the majority of gamblers do in places like Las Vegas because the odds are stacked heavily against you.
Now you would say I have already spent enough TIME and MONEY on this subject matter however the success is not visible and loosing streak still continue, making the same mistakes again and again. I have tried everything, different indicators and oscillators, different time frame but the results have been same even when I have taken 2 and more retakes. I still am not able to understand what is been missed.
Now if I say the essentials begin with identifying a purpose for your trading; that is, a compelling reason why you are trading and putting your hard earned money at risk.
- For that you will require a Trading Business Plan and the Strategies..
Let’s briefly take a closer look at these essentials.
After you have acquired the knowledge necessary to trade, you must then develop a macro Trading Business Plan. Here you will identify and formulate protocols and strategies that will increase your probabilities of getting the results you want. On a macro level, we are talking about organizing and planning your trading business; on a micro level, it is about executing planed trades.
Focus would be to figure out how to accomplish the goal and what actions it would require.
This process turns your intention into a concrete goal, further fuelling the fires of positive emotion and action. Additionally, it is important to organize both on a macro level and a micro level in order to plan effectively; in other words you must get in perspective the big picture and the details.
Your purpose should be a part of your trading business plan that includes the market or instruments that you intend to trade, goals and the strategies you intend to employ.
- For instance, your strategies would include whether you will day trade, swing, or trade long term, what time frame you aim to trade, the number of trades you plan to execute in one session, indicators, and financial objectives to name a few.
- Secondly, you must get market knowledge and acquire an understanding of the asset class that you wish to trade.
- Next, you need a set of rules to govern your trading: the entries and exits, what type of setups will be employed, etc., and these rules all stem, in large part, from your trading plan.
- Fourthly, you must have money & risk management strategies in place for every trade.
- And, of course, you must have mental and emotional tools in your tool belt…honed and ready to deploy in the service of self-discipline; for without self-discipline none of the other essentials will help you. These are all critical elements of successful trading.
Dreams are a dime a dozen. Everybody has them. But it is their execution that is most important. This plan, then, is a logical map showing where you want to go and how you will get there. “When a man doesn’t know what harbour he is headed for, no wind is the right one.”
There is a tremendous amount of Fundamental Analysis and Technical Analysis involved in successful equity, futures and currency trading, which are all a part of market knowledge. However, getting that knowledge can be a tough task.
The messages that have been playing and replaying in your thoughts —phrases like “You can’t do that”, “You’ll never make it”, “You dummy”, and other types of abuse language. Statements like these are hurtful even to an adult, and may have left you with low self-esteem, and, in some cases, self-hatred.
Successful trading involves rules and these rules form the foundation of your behaviour. You must have a list of rules that govern your trading. Now as this is again a complete learning curve. To fast forward this process I would like to help you to identify these rules as you trade and execute particular strategies that have worked most of the time in the market for me.
Of course you must have a money management and risk management plans as well. This would also include appropriate position sizing; that is, having the number of lots, contracts or shares appropriate to your trading account this are integral part of the Plan. With elaborate understand and a trading business plan plus market knowledge, and robust money management strategy, your success in the market would increases drastically.
The critical factor to being successful in the financial markets is the ability to follow your plan and your rules. With hand holding sessions live in the market on my account and a friend to guide you thru this difficult but dream journey to success. Remember you would need mental and emotional tools together with someone who believes that your success would be there to live for.
Help is there for you to take and fast forward your success. The trade plan I share is the plan I use every day and we take live trades in the market on my account to demonstrate that the Plan and Strategies I share are working in Real Time.
I have extended my hand to you if interested do write to me or talk to me and we discuss and take your success further.
It up to you to wait, do trial and errors, take few retakes, keep on changing the setups and strategies eventually Wasting Time Energy and of course Money too OR just take a step further Hold my hand and join me.