The simple rule of trading goes: Plan your Trade & Trade your plan. This is the most important & the most considered golden rule in trading. To be a very successful trader, you must follow a thought through & carefully set rules for trading. If you are starting to trade & new to the stock markets trading, here are quick tips to be a successful trader:
Seeking Information by Learning:
You got to be a life-long student & gain insights on all the theoretical aspects of trading. Browse internet, read blogs, visit websites, etc. Get access to all the available information in the books or internet. There is plethora of information available at:
Academic research papers – You can google academic research papers. E.g. Search for ‘trend following academic research papers’.
• Books & Resources: Look for the books relevant to your trading style.
• YouTube: Watch video reviews, inputs and discussions on different aspects of trading. Not only that you will learn the thought process of other traders but also will gain new & interesting insights.
• Google: You can always find the entire galaxy of information here. The basics, latest & the trending information
• Social Media: You can connect with traders who are successful. Follow them on Twitter and Facebook etc.
Find a trading style & method that suits you:
Before starting to trade identify your core & comfort areas. Make a note of it & try understand about it more. Do a lot of research & understanding of the markets & happenings. This way you’ll learn what works in the market, and pick one trading style that suits you.
Understand your Trading Plan:
A trading plan is a discipline to set before making any trading. It involves the structure and a set of guidelines, that defines your trading. Below is the essential information that every trading plan must answer:
• Time frame that you have decided to trade
• What re the Markets to be traded
• What is the amount of Risk Management involved
• What are the conditions of your trading setup
• When to enter into the market
• When to exit if you are wrong or right
The most important rule is to remain a life-long student. When you consult with the most experienced traders they would definitely advise that there is no thumb rule for success in trading. Trading success depends on many factors like: hard work, research, planning, discipline and having a learning zeal and a lifelong student of the stock markets. As with many businesses, there are certain principles that, when followed, can greatly increase the chances that a trader will be successful.