The common question, everyone asks before starting for trading. What is the most difficult part of stock trading? Well, the answer is the difficult part of stock trading is not the selection of the trade but the market timing and the entries. Beginners always come in the field of trading with a lot of expectations. Some of them see trading as a shortcut to earn money while others cynically dismiss it as a scam. But in reality, you must not fully know what to expect until you start your journey. As there is a lot of misinformation that leads to misguided expectations.
We can try different approaches to get good results, but we must also accept the fact that in many cases we will be unhappy with the results. Stops in many a time will save us great pain, but it is in our nature to reflect on those times when they failed us instead. Doing research gives some insight into the thinking behind the percentage method. If you are using a percentage method you need to decide to use a trailing stop. If you think you keep on moving your stop up and make sure the loss is never more than 8%, or do you leave the original stop in place and give the stock greater room to prove itself? Many traders loosen stops on big winners and give them more room as they feel they are playing with “house money”. Also, some look to make gains into a strength rather than on weakness as stock becomes technically extended.
If you are a beginner in trading, you have no idea where to start. You may not even know what to think about trading. As many people think that trading is a scam, but you may come across traders who are making a good amount of money. You may have a piece of basic information about the stocks, but day trading is another beast.
You must set some realistic expectations
Grab as much knowledge as you can
Learn as much as you possibly can. Take the help of expert traders, watch videos, read articles, take courses, etc. If you don’t know something, look for it.
- Protect Your Capital
Don’t be tempted to start trading right away. If trading success is in your future, you will have years to collect profits. Be patient and focus on learning. If you start trading right away, you could take yourself out of the game before you even gave yourself a fair shot.
2. Double methods that working for you
if you are having the fortune of placing a few profitable trades, study them, focus on what is right and use those insights to tailor your strategy.
3. Have Risk Control
Risk management is one of the important parts of traders of all skill levels. It is also said that traders have a different relationship with risk at every stage in their journey.
4. Have Patient
Trading without patience is one of the leading causes of failure amongst intermediate traders. Successful traders often serve as the fuel that ignites a streak of reckless behavior.
We have discussed every important factor of the trading network. By connecting with other traders, we can build good relationships and garner invaluable information. You can also join stock market training institute for getting proper stock market knowledge, technical studies, trading charts & other stock market basics. But it is also important to not compare yourself with others.