How to be an amazing Stock market trader?

Samprad78 By Samprad78, 13th Feb 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/be6fj48i/
Posted in Wikinut>Money>Investing

How to be a great trader and some great trading tips

Art of Trading

Trading is an art and that’s not anyone’s ball-game. You might be an extremely intelligent person but when it comes to trading you might suck badly. Trading requires of lot of skill, patience, adherence to rules and the courage of conviction. If you have these qualities then you can become a classic trader.

Thumb rules for Trading

Enter the stock market with proper research. Don’t go with what anyone on the road tells you. Just ensure that you have the conviction in yourself and the right mind-set to do it. Understand the technical parameters of the stock market and individual stocks. Someone would say, “Vow!! You know what. This is a great stock to trade. The business is exceptional and the company is really great and also has an amazing business complex in Paris.” Just don’t believe any damn thing. Research the technical pointers of the business. Understand the support and resistance levels for the stock. Understand how much volume of the stock gets traded on a daily basis. Ensure that you have exact details on its 50 day moving average and 200 day Moving average.

Trading Basics -1

Have crisp knowledge about the different technical trading patterns. If you are confident following the candle-stick pattern or if you believe in the DMA analysis then stick to it and don’t overdo things. Establish some clear pointers for support and resistance levels for the stock on a daily and short term basis. You are a trader so don’t look at the long term view.

Trading Basics -2

Stick to your rules. Get out of the stock if it breaks a support level and re-analyse the stock once it gets past its resistance levels. Have a strict stoploss and ensure that it is really very very strict. If you are trading on a daily basis then you need to be very particular about the stocks and must have set values in mind for the scrips.

And Finally

Don’t attach any sentiments to your stocks. Trading can’t be done with sentiments. Many times traders become investors because they missed the most eternal traits of trading. Trading is generally not for emotional guys 

Tags

Amazing Trader, How To Be An Amazing Stock Market Trader, Stock Trader, Trading Qualities

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author avatar Samprad78
An IT pro who loves writing on virtually everything on this planet

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Comments

author avatar tz
28th Aug 2013 (#)

great, thumb rules are great in physics, maths, and they are great in your article too! thanks for sharing these tips with us!

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