Critical Skills for Trading in Stock Market

By | March 10, 2016

Whether you are day trader, positional trader or swing trader ,there are fundamental skills that each trader should master. Skill-building activities will help you sharpen your ability to make money and cash in on critical market movements.

1. Never ever go for perfect trade but focus on consistency

Consistent profits are achieved from winning more than you lose – not winning every single trade.There are plenty of professional traders who generate profits by winning just 10% of their trades by maximizing gains and minimizing their losses.

2. Stick to a Trading Plan/ Trading Strategy

Developing a trading plan is extremely important.Day trading around your own set plan for each position will produce consistent profits. A trading plan planner should be your best friend when developing your own trading style. The key is sticking to what you’ve written down on paper. As we have discussed before we work on Price Action trading strategy, so we do not trade on news we just trade as System is signalling us. We have firm belief price is everything so we just trade the system signals.

3. Know the Risk

You should know the risk for each trade that you take.Your trading plan should include a way to regulate how much capital you’re willing to risk on each position and can you sustain a series a loser.

 

4. Ability to Keep Emotions Under Control

It’s hard not to be emotional with your hard earned money at stake each moment of the day.Think like you would in a survival scenario;you’ve got to be calm and keep your head above the water.Many traders slip from their plan and take positions to cover losses only to lose more money. Over time,a complete trading plan will produce consistent profits,but only if you believe in it. Read more on Emotions and Trading

6. Know How the Market Responds
After getting some experience, you should be able to know how the market responds to certain events before they happen. Either be with the trend or stay on sideline.

5 thoughts on “Critical Skills for Trading in Stock Market

  1. RAJMOHAN

    POINT 4. Ability to Keep Emotions Under Control IS MOST DIFFICULT OF ALL.
    WE CANNOT MAKE MONEY WITHOUT CONQUERING OUR EMOTIONS

    THANKS BRAMESHJI FOR THE REGULAR DOSAGE

  2. RAJMOHAN

    U CAN’T JUMP INTO RIVER WITHOUT KNOWING SWIMMING / WE REQUIRE TRUE MENTORS’ HELP TO DO SAFE TRADING /
    LEARNING FROM OUR OWN EXPERIENCE / MEDIA ARE GOOD BUT EXPENSIVE AS WE WILL LOOSE MORE TIME AND MONEY IN INITIAL STAGES OF TRADING CAREER.

    BETTER TO INVEST ON MENTORS TO DEVELOP TRADING SYSTEM / METHODOLOGY / TRADING PSYCHOLOGY IF U WANT TO BE AMONG 10% SUCCESSFUL TRADERS WHO ARE TRADING FOR LIVING

    ABOVE REMARKS ARE MY OWN EXPERIENCE AS I LOST HEAVILY IN THE BEGINNING.STAGES.

  3. Bramesh Post author

    If we are not well we go to Doctor not to youtube to cure our illness to see videos how our illness can be cured 🙂

    Rgds,
    Bramesh

  4. aatish

    Dear sir,
    Please send me the details of TA course.
    Thanking you.

  5. Gaurav

    Nice lines sir ! How many traders actually make money in market ?

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