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Trading is not just a way of making money but also a great profession that many follow. People usually know when to buy and sell, but then also they fail because they do not have a proper trading mindset. Trading Psychology is the key concept of trading, that people usually ignore, there are some basic rules, and ethics every successful trader follows. As a trader, these are some important rulers that I do follow.
1) Cut Your Losses:
You should learn to cut your losses quick. Always respect your stop loss and don't move your stop loss.
2) Trade Your Winnings:
Whenever you are in profit, try to hold your trade and book a good profit. By seeing a small profit don't square off your trades.
3) Protect Your Capital:
It is not difficult to make money but it is difficult to save money in the market. So always save your capital.
4) Follow Your Rules Discipline:
The market always takes money from Indiscipline Traders to Discipline Traders. So always be disciplined while trading.
5) Act Like a Robot:
In the market, there is no place for FOMO, FEAR, AND GREED, these emotions will destroy your trading career. So act like a robot and don't allow these emotions.
6) Calculate Your Risk:
Always go for calculated risks, don't go for heavy risk because it can destroy your mental health.
7) 3 Stoploss:
If you hit 3 stoploss back to back then shut down your screen and don't try to recover the loss, it might result in big losses.
8) Never Trade Without Stoploss:
Never trade without stoploss because there is a chance of losing your whole capital in a single trade, according to risk calculation set your stoploss.
9) Maintain Trading Journal:
Keep your trading journal to track your progress and learn from your mistakes.
10) Focus on Mastering a few Setups rather than Chasing Many:
There are thousands of setups in trading, so always follow one setup that makes you comfortable to take the trade. Understand your indicators and patterns.
11) Practice Patience and Discipline: don't chase quick profits:
Patience and Discipline are the two factors that make you a successful trader learn to keep patience, by seeing two big opposite candles that don't square off your trades. Always keep consistency in the market, by facing two, three losses don't quit the trading journey.
12) Cut losses quickly and let winners run:
Seeing opposite market movements, cut your losses quickly after hitting stoploss, don't predict future movements, and hold trades. It is a major mistake that many traders, especially new traders. The market will definitely not move according to your prediction.
13) Regular Review and Adjust your trading plan as needed:
Always keep adjusting your trading plans because of changing market conditions. And review market conditions because of several factors that can affect market trends. Always be in touch with the Global Market and Government Policies.
14) Don't move against the trend:
Don't move against trends because the trends are made by big bulls and bears of the market, so always take trade in favour of market trends.
15) Understand Market:
Fundamental Analysis is also as important as Technical Analysis, it is important to focus on these concepts before entering and also after entering in market -
- Bull and Bear behaviour.
- the Global Market.
- FII & DII Activity.
- Corporate Actions.
- The Economic Calendar and
- World and National News.
"Trading is not gambling. Trading is years of hard work, learning, and discipline. If you are looking for a place to make money easily, look elsewhere. Not having a position is a position"
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