“The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance” says Ed Seykota, a Commodities Trader and pioneer of Systems Trading.
Although trading is one of the hottest topics today, most people do cringe at the thought of trading itself. Be it a bitter past experience or failure to believe in the concept as a whole, trading can definitely mean different things to different people. But, like most things, trading isn’t something that needs be ‘difficult’ or ‘confusing’ as most people term it. You could choose to be as lenient or stringent with trading as you wish and still enjoy what you do. A good start is to keep a few Stock trading tips and tricks in your mind. Although this does not completely eliminate the fact that there are a few risks involved, it can help you foresee the concept in a much clearer way.
These amazing trading tips will make sure you never look at it the same way again:
1. Work on your skills: Although ‘trading’ is not something that you can actually master, over a period of time you can always get better by doing it consistently. Your intuition, decision-making abilities and skills in terms of trading need to be sharpened to make the most of trading opportunities.
2. Work on being a patient trader: The stock market will not touch the skies the minute you start dealing. Understand that large companies (or even small ones for that matter) didn’t achieve success in the market overnight. Making sure you go at it consistently and being patient will increase your chances nevertheless.
3. Make sure your price targets are set high: Determining the level of profit that is acceptable to you as well as maintaining a stop-loss level is crucial. By keeping your targets set high, you eliminate chances of potential losses. This will also keep you determined as you progress higher on the ladder.
4. Keep a little ‘risk money’ aside: Although you may have plenty to shell out at the moment or even vice versa, making it a decision to keep aside that small sum for emergencies. This is helpful when the markets suddenly fall and you may not have that much capital when it does. Also, do not touch this sum unless you are in dire need of it. You’ll thank yourself for this later!
5. Don’t be too hard on yourself: Successful trading can be only learned with experience that comes by, of course, trading. Do not question your actions if you do not do well. Instead, measure and evaluate your decision and make sure you do not go by that path again. In such a competitive industry, it means a lot to be positive, learn consistently and be determined to move forward with every chance you get.
These simple but notable trading tricks will definitely make you a better trader and investor going forward! Along with it, be attentive, learn from every chance you get and work on being the best at every stage!