I have an opportunity to Interact with lot of trades as part of my blog and my training classes which has been a great learning experience for me over the years. I’ve witnessed most of new traders falls in 2 category
- Traders want ready made tips and advisory services
- Traders focused on developing a “ trading system” that will generate consistent profits.
Most of traders first takes losses after taking tips and than they fall in 2 category where focus is on to develop a system.
I was much the same way when I came into trading, but was hand held by my trading guru and he explained me that developing a system is just 15% of the battle of trading.
The only reason which make trading so difficult is Very Few People Focus on Execution
Developing a system is stepping stone for being a good trader but if you fail at execution of your plan you will never be able to make money. Let me elaborate with an example
Time Cycle Converging for Pharma Stocks Auro,Sun,Divis can make short term bottom and Post 5-10% Rally with Todays low as SL
— Bramesh Bhandari (@brahmesh) May 29, 2017
Most of traders just saw these and very few acted on this and made money. So Having trust on system and Execution will play a vital role in trading success.
Let me discuss few points which will help in improving your execution.
1) Move out of your Comfort zone, Trading life starts when you move out of your comfort zone. You need to work harder and work a lot on your emotional balances by going through your trades over a period of time and making sure you become mentally strong by sticking to your trading rules.
2) Always have Plan B, Once a While most of traders take a bad trades and as a result, took losses that was quiet huge, busting account in some cases. Thats why if you observe my analysis and plan i will always have Plan B and it helps in protecting capital and also take the opposite trades at time.
3) Understand Probabilities : No on can be right all the time, but if you are right even 2 time out of 5 you can make money if you take trade with 1:5 risk to reward ratio. SO never think about getting all trades right, More you get comfortable in taking loss better trading will become.
4) Have Realistic Expectation : Do not think about making overnight success. Be realistic in your expectation and always follow the Golden Rule Trade Less Trade Better.
5) Never Underestimate your Capabilities : Always think High about yourself, Your Self Image is what make you. If you think bad about yourself you will always be locked in the in the viscious circle of not improving. But if you start thinking High about yourself, Your Self image will improve and you will take each success in stepping stone of going to higher levels in trading and in life also.