“An investor without investment objectives is like a traveler without a destination”.
You should know about the following key points before starting your career in Trading :
Decide What Kind of Trader You Are
Before start investing in the share market, you should be clear about which type of trading you want to do. Trading can be intraday trading, swing trading, short term trading, long term trading.
Learn a Strategy
After deciding which type of trader you want to be. The next thing is you have to learn a lot of strategies on how to survive in the share market without losing a lot of money in the starting.
Start Small
We can learn fundamentals along with learning & while doing mistakes but we have to start with a low amount so that if we lose that money we don’t have to regret it later and these things will keep our confidence high from starting itself.
“Spend each day trying to be a little wiser than you were when you woke up.”
Charlie Munger
Know What You Need, And What You’re Paying For
It’s a challenging and most important thing in trading that we should be clear about how much funds we want to make from the share market and we have to act accordingly because trading is Emotionally driven. The market is made of greed and fear. It is the reason so many traders give up.
“Know what you own, and know why you own it”.
Peter Lynch
Focus on learning not winning
The sentence itself saying a lot of things on its own. In the long term if we want to be great at something we should be a focus on learning as winning and losing are part of the game. If we are best at something we just have to remove L from learning and definitely we are going to do wonders.
It takes years to be a master
Trading is not getting rich scheme it takes years of practice to master & even then you need to maintain your skills. As it’s a proven fact that if we work on anything for more than 10k hours with consistency and without losing hope we are going to master that particular skill.
Think Long Term
Trading should never be rushed, instead, patience is your best friend in this industry. Think long term growth. As we know if you are not the patient stock market is not for you my friend. But yea doesn’t worry if you are patience stock market is going to teach you how to be patient and play your game skillfully.
There is no perfect metric
There is no single number that divides good traders from bad traders. Trading is a game of probability. You need to get comfortable with wins and losses. As the stock market is just like gambling but we have to convert more outcomes in our favor.
It’s the same, like if I gave you a coin and make you toss 5000 times and gonna ask you what’s gonna come next definitely you can’t be sure whether HEAD or TAILS gonna come. But surely you will learn like it’s all game of probability where we can apply our analysis and make things in our favor.
Dividends Are Your Friend
We have to focus on those companies’ stocks which are fundamentally strong and give DIVIDENTS, bonuses from time to time. Because dividends are the only thing which makes you rich or gives you a high return from the companies benefit or profit.
